July 2023 Market Update Austin MSA Is Resilient Against High Interest Rates - The Cummings Team - Pure Realty - Leander Today - Real Estate - Central Texas Real Estate

July 2023 Market Update – Austin MSA Is Resilient Against High Interest Rates

This past month, the Austin-Round Rock MSA has demonstrated strength and balance as it continues to stabilize in a post-pandemic world. Texas has seen a year of correction since July 2022, when the housing market first began to rebalance. With pending sales on the rise to 2,892 (a 14.5 percent increase), we can expect a healthy end to the year.

Ashley Jackson, the 2023 ABoR president, commented on the state of the local housing market in the Austin Board of REALTORS® July 2023 Central Texas Housing Market Report:

“July’s housing market activity underscores the resiliency within the MSA’s market…We now have a direct year-over-year comparison of when our market began stabilizing, and the big fluctuations we’ve previously seen have started to even out. Potential buyers who have been on the fence about purchasing a home should know interest rates are settling, and now is the time to act. Working with an experienced REALTOR® is the best thing you can do because they can help you make quick and confident decisions.”

In July, the Austin-Round Rock housing market saw homes spending an average of 59 days on the market (a 37-day increase from the previous year), a drop in the median home price to $462,000 (a 10.3 percent decrease), and a 23.7 percent decline in new listings to 3,884 listings.

“With a rise in pending sales and closed sales remaining consistent, this further indicates that buyers are becoming more accustomed to the higher interest rate environment and understand that elevated mortgage rates may continue. We are seeing a year-over-year decline in median sales price, as buyers cannot afford the same price points with these higher rates. Looking ahead, the odds of Central Texas experiencing a recession continue to decline with each passing month. Despite mortgage rates rising, Austin’s economy – which is fueled by a strong labor market – continues to outperform national expectations,” Dr. Clare Losey, housing economist for ABoR, remarked. 

While interest rates have continued to climb over the past few months, the Austin housing market has remained stable, demonstrating incredible resilience on a local and national level. 

Contact The Cummings Team® today for more market insights, exciting new listings, and advice on your next steps!

The Cummings Team® | 512-619-3186 | cummingsteam@purerealty.com.