Austin Housing Report for June 2023
Austin Housing Market Overview
The Austin housing market experienced some notable changes in June. Learn how our market is positioned for the second half of 2023 and explore factors impacting our market like mortgage rates and affordability.
We are halfway through the year, and the Austin housing market has seen some noteworthy changes. Looking toward the second half of the year, we'll delve into key market trends, the impact of factors like mortgage rates and affordability, and explore the future of the Central Texas real estate market.
Median Home Price
Median home sale prices decreased by 9% year over year to $483K. However, prices continued an upward monthly trajectory, growing consecutively for four months.
Home Sales
The number of homes for sale increased by 38% compared to the previous year, offering homebuyers more choices. Average days on the market decreased by 4 days from the previous month to 61 days, yet increased by 43 days from a year ago.
Housing Inventory
Despite the increase in home sales, Austin's housing inventory remains tight. As of June 2023, there was 3.7 months supply of homes, well below the 6 months supply considered to be a balanced market. This low inventory level is contributing to the upward pressure on home prices.
With the inventory of homes for sale reaching 3.7 months, the highest level since April 2017, compared to 2.1 months in June 2022, the market is moving towards equilibrium. This provides favorable conditions for sellers looking to list their homes during the peak summer buying season.
What This Means for Buyers and Sellers
For buyers, the Austin housing market remains competitive, with high demand and low inventory driving up home prices. However, the city's strong economic growth and the potential for property appreciation make it an attractive market for long-term investment.
For sellers, now is an excellent time to list your property. However, it's crucial to price your home correctly and present it in the best possible light to attract potential buyers.
Conclusion
The Austin housing market is expected to remain relatively robust in the near term. Mortgage rates may decline slightly as the Federal Reserve adjusts monetary policy in response to decelerating inflation. This could provide higher purchasing power for potential buyers. While home price volatility typically occurs during the peak buying months, no significant swings are anticipated for the rest of the year. Inventory levels are likely to level out, still favoring a seller's market but becoming more balanced.
Whether you’re a buyer or seller, understanding the latest trends and market conditions empowers you to make informed decisions. Embark on your real estate journey and achieve your goals with the support of me and my team. You can reach out at 512-788-2629 or email me at [email protected].