real estate report
More inventory signals stabilizing Austin housing market, says latest report
In what looks like signs of normalizing for both homebuyers and sellers, the Austin-Round Rock metro area now has three months’ worth of housing inventory with active listings soaring to over 8,000.
The latest housing market report from the Austin Board of Realtors (ABoR) stated nearly 4,400 homes hit the market in March, which is a 6.6 percent year-over-year increase from last year. While pending and completed home sales in Austin decreased by about 19 and 25 percent, respectively, there was a spike in both new and active listings.
2023 ABoR president Ashley Jackson said in a press release that the past quarter has “ushered in a sweet spot for both buyers and sellers” exploring the current market.
“There are three times the number of homes on the market than a year ago, bringing more choice and opportunity to homebuyers in over a decade,” she said. “REALTORS® are reporting that they are busy and the market is moving at a much healthier pace than it has in years.”
Home prices continue to drop in all five Central Texas counties, which is a continuation from last month’s report. Median home prices fell the most in Bastrop County, by 17.5 percent, to $329,990. Active listings skyrocketed in all counties, with completed sales increasing slightly in Hays and Bastrop counties, but home sales decreased in Travis, Williamson, and Caldwell counties.
ABoR’s first housing economist Dr. Clare Losey said in the release that the housing market is seeing stabilization in line with the current demand.
"Austin’s housing market is still demand driven, contributing over $1.5 [billion] to our region’s economy last month even as the pace of home sales and price growth adjusts from the extreme anomaly of the last two years,” said Losey. “The increase of new listings in March, specifically month over month, indicates rising seller confidence, and the recent decline in mortgage rates provided momentum for homebuyers”
Dr. Losey recommended this spring as the best time for Central Texans to move, taking into consideration the expected consistency of mortgage rates for the remainder of 2023. She also dismissed rising concerns for the housing market after recent layoffs nationwide.
“Recently announced layoffs have not been enough to indicate a downturn in Austin’s job market or impact housing demand,” she said. “In fact, Travis County’s job market is projected to grow at nearly double the pace of job growth statewide over the next decade, with the leisure and hospitality sector leading that growth.”