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Austin housing market indicates growing trust between buyers and sellers, says new report

As another Texas summer blazes ahead, the real estate market in Austin is showing promising signs of a more balanced and harmonious relationship between buyers and sellers, creating a new and encouraging sense of trust within the market. 

According to the latest Central Texas Housing Market Report, the Austin-Round Rock MSA in May experienced a notable expansion in housing inventory, with a year-over-year increase of 2.2 months, bringing total inventory to 3.4 months. Active listings witnessed a remarkable surge of 118.9%, reaching a substantial count of 8,960 active listings. This surge in active listings demonstrates the growing confidence of both buyers and sellers in the present market conditions.

Ashley Jackson, 2023 President of ABoR, emphasizes the indispensability of REALTORS® in navigating the current market fluctuations. “With the ebb and flow of mortgage rates, this is when the value of a REALTOR® comes into play. They can help buyers find down payment assistance programs or identify financing options. Real estate remains the most powerful long-term investment and having a trusted expert in your corner is crucial.”

Pending sales across the MSA experienced a slight decline of 0.5%, amounting to 3,243 pending sales, and homes spent an average of 65 days on the market – 49 more than in the previous year. Median home price dropped 15% to $467,500, and closed sales decreased 4.2% with a total of 3,411. 

“Context matters, and May’s 2022 median home price, $550,000, was the highest median home price the Austin region has ever seen,” reminds Dr. Clare Losey, housing economist for ABoR. “Relative to pre pandemic levels, last month’s median home price is up 44%.”

Also in May, continued Losey, “homes sold for 94% of their original list price. The continued uptick in that figure demonstrates that sellers are pricing their homes more accurately and buyers are more responsive to those prices than in the earlier part of 2023.”

In the face of fluctuating mortgage rates, Austin’s housing market has shown resilience and relative stability. Homebuyers’ purchasing power has been impacted less severely compared to the national average, with a decrease of approximately 3% to 4% in monthly mortgage payments compared to the national average of 8% to 9%. 

In light of Austin’s rapid population growth and ongoing housing shortage issue, ABoR invites Austinites to attend the annual Central Texas Housing Summit in July, in which experts will discuss various facets of the real estate industry, covering topics that affect sellers, buyers, renters, and homebuilders.

“No issue is more critical than the future growth of our region than housing,” said Jackson. “Austin recently emerged as the 10th largest city in the country and three of the top four fastest-growing cities in the nation are in Central Texas. People from all over the world want to call Austin home, and we must put housing first.”

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