The Tale of Two Markets: Decoding Austin's October Real Estate Numbers

The latest numbers are in for October, and they paint a fascinating picture of the Austin real estate landscape. While the average sale price has held steady compared to this time last year, sitting around $430,000, a closer look at the data reveals some significant shifts, particularly when it comes to inventory and seller expectations.

Key Market Trends

We are observing a few key shifts that every buyer and seller should be aware of:

Stable Average Sale Price: The Austin area is maintaining an average sale price similar to last October, suggesting sustained demand at that price point.

Inventory is Up: While new listings entering the market are slightly down, the overall inventory available to buyers has increased.

The Price-to-Sale Gap Widens: This is where the story gets interesting. The average list price to sale price ratio is now sitting at approximately 92%. This is a considerable drop from the "boom" years, where we often saw 98%, 99%, or even 101%. Simply put, homes are selling for, on average, 8% less than their asking price.

In the Market vs. Out of the Market

Right now, we are seeing what we call the "Tale of Two Markets." A property is either "in the market" and selling, or "out of the market" and sitting. What makes the difference? Two critical factors: Price and Condition/Updates.

1. Price is Paramount

Naturally, if a home is priced too high, it is immediately "out of the market." Buyers have more choices now and are unwilling to overpay. Setting the right list price from day one is more crucial now than ever before.

2. Condition & Updates Matter More

Beyond price, the condition and level of updates are determining factors.

A home can be in very good condition (well-maintained, clean), but still be "out of the market" if its style and features don't meet today's standards.

Buyers are constantly comparing resale homes to new construction. If your home lacks the modern updates (think current kitchen finishes, bathroom styling, and open-concept layouts) that new builds offer, buyers will demand a significant price discount to compensate.

If your home is well-priced and has current updates, it will move quickly. If either of those factors is missing, the home could be "out of market."

If you have questions about where you should be putting your money before listing, please don't hesitate to reach out. We're here to help you get "in the market" and achieve the best possible result!

Contact me today at (512) 261-1000 or Gene@genearant.com