The latest market report from Austin Board of Realtors may be just the sliver of hope buyers have been waiting for.
For the last two years, the Austin real estate market has been ideal for those selling their homes. Low inventory and unprecedented demand created a new norm of wild negotiations, high offers and home prices shattering all-time records on a near monthly basis. While fantastic for sellers, this left buyers on the other end in an impossible situation – either scrambling or waiting.
According to the most recent report from ABoR, the number of active listings in May jumped a staggering 146% from 2021, pushing months of inventory over 1 for the first time in seven months. While the City of Austin home price jumped to a new record of $667,000 last month, Austin Metro held steady at April’s record-breaking $550,000.
“The strength of our evolving housing market remains a very important part of Austin’s economy,” Cord Shiflet, 2022 ABoR president, said. “The increase in inventory that we’re seeing is helpful for buyers who have had a hard time finding a home these past two years.”
This increase in inventory and active listings “point to the market beginning to normalize,” commented Dr. Adam Perdue, research economist at the Real Estate Center at Texas A&M University. “While year over year price increases will continue to remain high, we project them to fall slightly lower than the long-term trend we’ve monitored over the past two years.”
When asked whether this new information suggests a bubble on the horizon, Perdue explained that “the Austin housing market has experienced a multitude of factors that have influenced its current state, one of those being the high influx of companies and individuals migrating to the area both from within Texas and out-of-state, which has contributed to a strong and diverse economy attractive to people seeking opportunity.”
“These migrations of individuals and companies will continue to happen, especially as Austin is relatively affordable compared to some out-of-state markets when it comes to owning a home and operating a business. Given this growth and continued increases in prices, the sales decline appears to be more likely a supply issue than a demand one and does not indicate a bubble bursting.”
As many look to relocate before the new school year or buy before interest rates spike, this exciting news comes at a very welcome time. We encourage those buyers to jump on the opportunity and, as always, to use a REALTOR® to ensure they receive the best possible guidance and care.