Why Austin’s Real Estate Market Is Cooling: A Deep Dive into Days on the Market and Sales Trends
Published | Posted by Dan Price
Why Austin’s Real Estate Market Is Cooling: Days on the Market and Sales Trends
The Austin real estate market has seen significant changes over the past few years, and recent data shows that the current trend points to a cooling market. According to the latest reports, properties in the Austin area are taking longer to sell, and many are staying on the market for extended periods. This shift is most evident in the rise of "stale" listings, which have been on the market for over 100 days. These trends are crucial for both buyers and sellers to understand as they navigate a slower market.
The "Days on the Market" chart reveals a shift in the typical time frame for listings in Austin. Currently, around 42% of active listings in the Austin area have been on the market for over 100 days, indicating that these properties are struggling to find buyers. Meanwhile, 32% of listings have been on the market for less than or equal to 50 days, showing that a significant portion of the market remains active. However, properties that fall between 50 and 100 days on the market make up another 25.7% of the listings. These mid-range listings suggest that while there is still demand, it may not be as strong as in previous years.
Looking more closely at the data for specific cities, we see that areas like Hutto are seeing better performance, with 55.5% of properties on the market for less than 50 days. In contrast, areas like Liberty Hill and Leander have much higher percentages of listings on the market for 100 days or more, showing a clear difference in demand across regions. This data highlights the need for sellers to be aware of local market conditions when listing their properties.
Further analysis of the "Average Days to Sell" report shows a sharp increase in the time it takes to sell a property in Austin. The average number of days to sell has increased to a 10-year high of 90 days in January 2025. This marks a significant shift from previous years, with the average days to sell being just 64 days in 2023. Looking back at the past decade, the market has seen periods of faster sales, particularly in 2020 and 2021 when interest rates were at historic lows and demand was high. However, in recent months, the market has cooled, and this change is reflected in the data.
This increase in days on the market can be attributed to several factors, most notably the rise in mortgage interest rates. Higher rates have reduced the urgency among buyers, causing many to take more time to evaluate their options. As a result, homes are staying on the market longer before selling. In fact, comparing January 2024 to January 2023 shows a 23.1% increase in the average number of days to sell, further confirming this trend.
The trend of slower sales is not only seen in the average days to sell but also in the increasing number of "stale" listings. As of the latest data, over 40% of properties on the market in Austin have been listed for more than 100 days. These listings are often seen as less desirable by buyers, who may perceive them as overpriced or in less-than-ideal condition. Sellers with properties in this category may need to make adjustments to attract interest, whether through price reductions, improvements to the property, or better marketing strategies.
The changes in the Austin real estate market present both challenges and opportunities for buyers and sellers. For sellers, it is essential to adjust expectations and understand that the market is slower than it was a few years ago. Pricing strategies, property condition, and marketing efforts will play a more significant role in attracting buyers. On the other hand, buyers may find more opportunities for negotiation, as sellers may be more willing to make concessions in a cooler market.
In conclusion, the Austin real estate market is currently experiencing a slowdown, with properties taking longer to sell. Data shows that the average time to sell a property has reached a 10-year high, and a significant portion of listings have been on the market for more than 100 days. Sellers need to be aware of these trends and adjust their expectations accordingly, while buyers may find opportunities to negotiate better deals in this cooling market.
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