January 2024 Market Trends | Austin, TX

When it comes to understanding the real estate market, there are several key metrics that buyers and sellers should pay attention to. These metrics provide valuable insights into the current state of the market and can help guide decision-making. Let's take a closer look at the correlation between some of these important real estate metrics.

First, let's consider the "Months Supply of Inventory." This metric represents the number of months it would take to sell all the current inventory of homes on the market, given the current pace of sales. In this case, the months supply of inventory is 3.09. This indicates that, based on the current rate of sales, it would take a little over three months to sell all the available homes.

Next, let's examine the "12-Month Change in Months of Inventory." This metric measures the percentage change in the months of inventory compared to the previous year. In this scenario, the change is -9.12%. This means that there has been a decrease in the months of inventory compared to the previous year, suggesting a more competitive market where homes are selling at a faster pace.

Moving on to the "Median Days Homes are On the Market," this metric provides valuable information about the average amount of time it takes for a home to sell. In this case, the median days on the market is 65. This indicates that, on average, homes are selling within a span of roughly two months.

The "List to Sold Price Percentage" is another critical metric to consider. This metric reveals the percentage of the listing price that homes are ultimately sold for. With a percentage of 96.2%, it suggests that, on average, homes are selling very close to their initial listing price. This can be an encouraging sign for sellers, as it indicates a strong demand and competitive market.

Finally, let's look at the "Median Sold Price," which represents the middle point of all the sold prices in a given area or market. In this case, the median sold price is $528,742. This figure provides an overview of the general price range that most homes are selling for. It's essential for buyers and sellers to consider this metric to gain a better understanding of the market value of properties.

Overall, these real estate metrics provide a comprehensive snapshot of the market. The low months supply of inventory and the decrease in months of inventory compared to the previous year suggest a competitive market with high demand. The relatively short median days on the market indicate that properties are selling relatively quickly. Additionally, the high list to sold price percentage suggests that sellers are achieving close to their asking prices. Finally, the median sold price provides a benchmark for buyers and sellers to evaluate the value of properties in the market.

By understanding and considering these metrics, buyers and sellers can make more informed decisions and navigate the real estate market with confidence.