As the end of the year approaches, the Austin housing market presents unique trends and opportunities for both buyers and sellers. Here’s a look at what’s happening and what it could mean for you.
Buy Now, Pay Later
One of the most compelling reasons to consider purchasing a home right now is the opportunity to delay mortgage payments until 2025. This limited-time window allows buyers to move into their new home without the immediate pressure of monthly payments, making it an ideal moment to secure a property before the year ends.
The Election Effect on Housing
Presidential election years often bring a level of uncertainty to the housing market, and 2024 is no exception. Historically, November sees a dip in home transactions during election years. Zillow’s analysis of data from 2000 to 2020 shows that transactions for new single-family homes declined an average of 3.7% from October to November during election years.
This hesitation can be attributed to buyers holding off while waiting to see how election results might impact the economy and housing market. However, this slowdown is often temporary. Data indicates that in December following an election, transactions typically rebound more sharply than in non-election years—averaging a 2.4% increase compared to 0.9%.
Beyond the Election: Other Market Influences
While the election has its role, it’s not the only factor shaping the current market. Mortgage rates, home prices, and inventory levels are all playing significant roles. Recent rate fluctuations, combined with messaging about potential rate decreases in 2025, may be influencing buyer behavior.
For Austin, these dynamics mean that while activity may feel quieter this month, the market could see renewed momentum in the weeks ahead as buyers regain confidence and re-enter the market.
What to Watch in December
• Buyers who have been on the sidelines may feel more certain post-election and ready to move forward, creating a potential uptick in demand.
• Sellers who list their homes now may benefit from the year-end resurgence as motivated buyers re-engage.
• Mortgage rates, a critical factor for many, remain unpredictable but could stabilize or even decrease as we head into the new year.
As 2024 draws to a close, the Austin housing market remains dynamic. While some trends are influenced by election-year uncertainty, others reflect broader economic patterns and local market conditions.
By staying informed and ready to adapt, both buyers and sellers can position themselves for success in this unique market environment.
