December 2024 Real Estate Insights: Activity Index at Six-Month High

December 03, 2024 : The Austin-area real estate market shows signs of strengthening as of December 3, 2024, with key indicators reflecting improved conditions for both buyers and sellers. Two essential metrics—Activity Index and Months of Inventory—highlight the current state of the market and provide a detailed look at recent trends in Austin real estate.

As of December 3, 2024, the Activity Index for the Austin area stands at 23.1%, marking its highest level since July 3, 2024, when it reached 23.3%. This index measures market demand by comparing the number of pending properties to the total active and pending listings. A higher Activity Index indicates increased buyer engagement, a key factor driving the current momentum in Austin area real estate. The recent rise in the Activity Index represents a significant recovery, especially when compared to its low point of 21.3% in mid-August 2024.

Another critical indicator, the Months of Inventory for the Austin real estate market, is now at 4.48 months. This is the lowest level since April 25, 2024, when it stood at 4.4 months. Months of Inventory measures the time it would take for all current listings to sell if no new properties were added to the market. A decrease in this metric suggests tighter inventory, with homes selling faster due to higher buyer demand. This decline is welcome news for sellers, as it points to a more competitive market that may lead to stronger offers.

The Austin real estate market has experienced a dynamic year, with fluctuations in both the Activity Index and Months of Inventory. During the summer months, the market softened, with the Activity Index dropping and inventory levels peaking at 5.48 months in mid-July 2024. However, the latter half of the year has seen a reversal of these trends. The Activity Index began to rise steadily, and inventory levels started to decline, reflecting a renewed balance between supply and demand in the Austin area real estate market.

These positive shifts underscore the resilience of Austin real estate. Buyers are returning to the market with confidence, and sellers are benefiting from improved conditions. The current trends also align with seasonal patterns, as the fourth quarter traditionally brings heightened activity in preparation for the new year.

For those navigating the Austin real estate market, these insights are invaluable. The improving Activity Index and tightening inventory suggest that buyers should act quickly to secure favorable deals, while sellers can leverage the competitive conditions to maximize value. Looking ahead, the Austin real estate market's trajectory will depend on broader factors such as interest rates, local economic conditions, and housing affordability, but the current data signals a strong finish to 2024​