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Austin housing market saw $17B in activity in 2023, experts forecast 2024 trends in latest report

Photo by Adrian Newell on Unsplash

If the last two years were a roller coaster for the Austin housing market, 2022 was the scream-inducing drop, and 2023 was the relief at the end once you’ve double-checked your extremities and counted your blessings. 

Last year did, in fact, turn out to be an encouraging turn of events for the central Texas housing market and economy according to the latest report from Austin Board of Realtors. Despite rising interest rates, inflation, and a slew of other national economic obstacles, the market maintained its strength, ultimately leveling out from 2022’s sharp decline. 

In 2023, median home price in the Austin-Round Rock MSA fell 10.2% year-over-year to $450,000. Sales decreased just 3%, a stark improvement from 2022’s significant 24.2% drop. Sales dollar volume declined 17% to $17.5B and new listings dipped 7%, ending the year at 42,623 in total. 

“In 2023 the Austin-Round Rock MSA housing market continued its move towards a more sustainable pace,” said Kent Redding, 2024 ABoR President. “Housing inventory reached the highest level it’s been in more than eight years, and while there was a drop in closed sales and median close price, these were both symptomatic of higher mortgage rates.”

In the month of December last year, median sales price dropped just 1.4% to $443,753. Closed listings fell 9% to 2,295, new listings increased by 8.4% to 1,956 listings, active listings ticked up 4.6% and pending sales rose 13.8%. Sales dollar volume decreased 8.5% to $1.27B and average days on market hit 84 days, up just 9 from December 2022. 

Looking ahead to 2024, ABoR housing economist Dr. Clare Losey forecasted that “home prices and sales will likely remain essentially flat, to the tune of a 5.0% increase or decrease year over year in 2024.”

Losey pointed out the positive trends in the market, noting a 30.5% increase in total sales dollar volume, a 21.9% rise in active listings, and a substantial 38.4% increase in months of inventory compared to five years ago. “Housing demand is still strong and the uptick in the inventory of homes for sale in 2023 has provided more options for repeat buyers.” 

“In the current housing market, prospective homebuyers and sellers should engage the services of an expert REALTOR® who can help navigate the real estate transaction process,” urged Redding. “Buyers can utilize this favorable market condition to get pre-qualified while sellers can use the time afforded by the balanced market to enhance their property before listing it for sale.”

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