Austin-Area Real Estate: Analyzing the Sold Price to List Price Ratio

Understanding the Sold Price to List Price Ratio in Central Texas Real Estate

The Central Texas real estate market has seen significant changes over the past few years, with fluctuations in the Sold Price to List Price ratio providing a clear indication of these trends. This ratio, which compares the final sale price of a home to its original listing price, is a key metric for both buyers and sellers. It offers insights into how competitive the market is and how closely sellers' expectations align with what buyers are willing to pay.

​

In August 2022, the Sold Price to List Price ratio for Central Texas stood at 96.46%, showing that, on average, homes were selling for less than their listed price. This trend continued into September 2022, where the ratio further declined to 94.71%, and in October 2022, it dropped to 92.79%. These figures highlight a period where buyers gained more negotiating power, often securing properties below the asking price. The downward trend persisted through the end of 2022, with December recording a ratio of 89.76%.

Moving into 2023, the market showed some fluctuations. In January 2023, the ratio slightly recovered to 90.04%, but it remained below the 100% mark, indicating a continued buyer's market. February 2023 saw the ratio at 90.80%, while March and April showed slight improvements at 92.23% and 93.73%, respectively. Despite these increases, the market still favored buyers, with homes generally selling below their list prices.

​

The ratio hovered around the mid-90% range throughout the rest of 2023. By December 2023, the Sold Price to List Price ratio was at 91.31%, illustrating a consistent pattern where homes were selling for less than what sellers initially anticipated. As 2024 began, the trend of properties selling below their list prices continued. January 2024 recorded a ratio of 91.85%, and although there was a slight improvement in February 2024 to 93.54%, it remained a buyer's market.

​

Geographically, the report breaks down the Sold Price to List Price ratio across various cities in Central Texas. In Austin, the ratio fluctuated slightly but generally remained in the 96-98% range from August 2023 through August 2024. Bastrop showed stronger performance, with the ratio often reaching or exceeding 98%, peaking at 99.3% in August 2024. Other cities, such as Buda, also performed well, with ratios consistently above 97%. However, areas like Burnet and Cedar Creek saw more variability, with ratios dipping below 96% at times.

​

The data also reveals that a significant percentage of homes sold below their list price throughout this period. In August 2024, 67.7% of homes were sold under their list price, while only 11.7% sold above it. This trend reflects a market where buyers were less willing to pay above the asking price, likely due to broader economic factors or an increase in available inventory.

Understanding the Sold Price to List Price ratio is crucial for anyone involved in the real estate market. For sellers, it provides a realistic expectation of what their home might sell for, while buyers can gauge how much leverage they might have during negotiations. As Central Texas continues to evolve, this ratio will remain a vital indicator of market conditions, helping both buyers and sellers make informed decisions.