Austin homeowners are selling homes at a loss
A growing share of Austin homeowners are selling their houses for less than they paid for them, per data Redfin shared with Axios' Brianna Crane.
Why it matters: Some Austin area homeowners lost upwards of five figures on their sale this year amid higher interest rates.
State of play: Nearly 5% of Austin metro homes sold at a loss from August to October — up from 0.75% a year ago.
- The median loss was around $35,000, per Redfin data.
What's happening: Austin's housing market is still normalizing after 2020's hot housing market, when buyers snapped up homes within weeks — sometimes for hundreds of thousands of dollars over the asking price.
What they're saying: In the Austin Board of Realtors' November housing market report, president Ashley Jackson said the market is still normalizing. Higher mortgage interest rates have kept homes on the market for longer with fewer buyers able to afford a home here.
- In October — the latest data available — homes spent an average of 68 days on the market, up 21 days from October 2022, and housing inventory increased from 0.7 months to 3.2 months.
- But October showed some promising signs, Jackson said: "An increase in sales and a jump in pending sales indicates buyers continue to enter the market and are finding more bargaining power throughout the transaction."
Zoom out: Losing money on your home sale is becoming more common across the U.S.
- The highest share and largest losses were in San Francisco. Roughly 1 in 7 owners there lost money on their home sale, with a median loss of $122,500.
- Some markets have been even stronger for sellers this year. The share of losses in Chicago, for instance, has shrunk since last year.
Yes, but: In this low-inventory market, sellers are still on top. Those who've been in their homes for a long time can make a profit, per Redfin.
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