As the red-hot summer real estate market in the Austin-Round Rock MSA officially comes to a close with this August data, we gain some unique insight into upcoming trends and forecasts for the end-of-the-year market.
Previously an intense, highly competitive sellers market, the Austin Board of REALTORS® August 2023 Central Texas Housing Market Report reveals a cooling situation. Ashley Jackson, the 2023 ABoR president, remarked, “Austin’s current housing market allows for potential home buyers to be picky…With housing inventory increasing across Central Texas, buyers—especially first-time home buyers—can take their time searching for a home that checks all their 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. Now is the time to take advantage of the increase in leverage that buyers now have.”
A record-setting month, August found the first increase in closed sales year-over-year since February 2022, rising 1.4 percent to rest at 2,939 sales. The Austin area also experienced a gradual increase in housing inventory, from 1 month to 3.8 months, alongside an 8.8 percent month-over-month growth in closed sales. These jumps in numbers signify a strong buyer confidence in the current market.
Dr. Clare Losey, the housing economist for the Austin Board of REALTORS®, agreed with this stance while calling for a more widespread reserve to combat the current limited supply: “In August, amidst an elevated interest rate environment, the rise in sales—both year-over-year and month-over-month—indicates that buyers are purchasing homes because it is a good investment. However, there is still an inadequate supply of homes in the region, especially affordable housing options…Higher mortgage rates have led potential sellers to wait longer before entering the market, further constraining the supply of homes for sale.”
While there are still some challenges the Austin-Round Rock MSA must overcome, the “increase in inventory combined with median home prices dropping–both changes we’ve seen across the market–show that the Austin-Round Rock MSA market is active and resilient.” [Ashley Jackson]
As both buyers and sellers navigate the new fall market, it’s strongly advised to find a REALTOR® that understands the highs and lows of the real estate climate. Feel free to reach out if you have any questions about buying or selling in the current market!
The Cummings Team® | 512-619-3186 | cummingsteam@purerealty.com