real estate report
More closed home sales in Austin show growing homebuyer confidence
The Austin Board of Realtors has revealed a more optimistic outlook on Austin's housing market, with the latest data showing the first increase in closed home sales year-over-year since February 2022. More closed sales and a gradual increase of housing inventory convey growing buyer confidence throughout the Austin-Round Rock metropolitan statistical area (MSA).
2023 ABoR president Ashley Jackson said in the report that with the increased inventory, buyers can afford to be pickier about the homes they want to purchase. It's especially prevalent for first-time homebuyers to own a house that "checks all the boxes."
"When compared to the past two years of highly competitive market activity, this is both a welcome reprieve and perfect opportunity for buyers looking to enter the market," Jackson said. "Now is the time to take advantage of the increase in leverage that buyers now have."
The slight boost of housing inventory in the MSA is good news, but supply is still limited overall, according to ABoR housing economist Clare Losey, Ph.D.
"ABoR’s Central Texas Housing Development Fees Analysis, released in July 2022, shows that Austin’s drastically high development fees pose a significant barrier to new home construction and thereby diminish growth of our housing supply, especially when compared to other development fees in other Central Texas cities and major metropolitan Texas areas," Losey said. "Higher mortgage rates have led potential sellers to wait longer before entering the market, further constraining the supply of homes for sale."
Losey says it will get harder to predict the state of the housing market through the rest of 2023, as interest rates are likely to increase again before the end of the year.
Median home prices dropped slightly to $460,000 in the Austin-Round Rock MSA, which is a 7.6 percent decrease year-over-year from August 2022. Closed sales rose to 2,939 in August; a 1.4 percent increase. Homes are spending an average of 60 days on the market, which is 28 more days than this time last year.
Over 1,350 homes were sold in August of 2023 in Travis County, with median prices dropping almost 5 percent year-over-year to $534,000. There were 4,772 active listings on the market; about 18 percent more than August 2022.
More than 970 homes were sold in August, with median prices sitting at $435,516. There were 1,241 new home listings in Williamson County, with a total 2,867 active home listings.
A total of 417 homes were sold in August in Hays County, with median prices continuing to fall to $394,990. Pending sales were up by 8.2 percent year-over-year, while active listings had also risen 33.9 percent to 1,550 homes.
Bastrop remains the county with the highest inventory in the MSA at 4.8 months' worth, which is 1.2 months more than August of 2022. 154 homes were sold this past August, and median prices are just under $340,000 (a 15 percent decrease). There are 28 percent more active listings on the market in Bastrop County, coming out to 586 homes.
Homes in Caldwell County sold for a median of $299,990 in July, which is a 6.9 percent drop year-over-year. 42 homes were sold last month, nearly 18 percent less than the year before, and there are 180 active homes on the market. In a massive uptick in new home listings, Caldwell County had 92 new homes on the market in August, or 61.4 percent more than this time last year.