Georgetown, TX Real Estate Market Update: August 2024 Analysis
Published | Posted by Olivia Buffaloe
Understanding Georgetown's Real Estate Trends: Price Drops, Inventory, and Market Activity
August 19th, 2024: The real estate market in Georgetown, Texas presents an interesting blend of trends that are essential for both buyers and sellers to understand. With 1,136 active residential listings currently on the market, Georgetown's housing scene is vibrant yet nuanced. These listings include a mix of new constructions and re-sale homes, with re-sale properties making up 57.22% of the market. The remaining 42.78% of listings are new builds, reflecting the ongoing development in this fast-growing area.
One of the most critical aspects of the Georgetown real estate market is the pricing trends. The average list price for a home in this market stands at $582,092, with a median price of $519,000. This difference between the average and median prices suggests that while many homes are priced around the half-million mark, there are also higher-end properties that push the average upwards. However, not all homes are maintaining their initial list prices. In fact, 38.4% of the listings have experienced a price drop. The average reduction in price is significant, with homes being marked down by $42,106 on average, and the median price drop coming in at $30,000. This trend could indicate that sellers are adjusting their expectations in response to market conditions.
Despite these price adjustments, a considerable portion of the market remains stable, with 57.7% of the listings not undergoing any price changes. On the other hand, only a small fraction of properties, about 4.0%, have seen price increases. This data is crucial for both buyers looking for deals and sellers aiming to set realistic expectations in the current market.
The duration homes stay on the market is another critical factor to consider. In Georgetown, the average days on market (DOM) is 86 days, suggesting that homes are taking nearly three months to sell. This figure is vital for sellers to understand, as it can influence their pricing strategies and expectations regarding the time it may take to close a sale. For buyers, this data might signal opportunities for negotiation, especially if a property has been on the market for an extended period.
Inventory levels also provide insight into the current state of the Georgetown housing market. With 4.79 months of inventory available, the market is approaching what many would consider a balanced state. However, the presence of nearly five months of inventory suggests that buyers might have more options and negotiating power, especially in a market where a significant portion of homes are experiencing price drops.
Occupancy status further reflects the dynamics at play. A large majority of the listed properties, 68.40%, are vacant, while only 30.11% are owner-occupied. This high vacancy rate could be indicative of speculative buying or investment properties that are not currently in use, which might also contribute to the price reductions observed in the market. A mere 1.50% of the listings are tenant-occupied, which could suggest a lower demand for rental properties or a market more oriented toward homeownership.
Lastly, the activity index—a metric that measures the level of market activity—varies across different price ranges, with the highest activity seen at 31.4%. This variability in activity indicates that certain segments of the market are more competitive than others, which could influence both buying and selling strategies.
Overall, the real estate market in Georgetown is in a phase of adjustment, with a mix of new and re-sale homes contributing to a dynamic marketplace. Price reductions are common, and the time it takes for homes to sell is stretching out, both of which point towards a market that may be leaning slightly in favor of buyers. However, with a substantial number of listings remaining stable in price and the inventory levels suggesting a balanced market, there are opportunities for both buyers and sellers to achieve their real estate goals.
