Great news y’all! The Austin Board of REALTORS® has released its December 2023 and Year-End Central Texas Housing Market Report!
In 2023, we saw the Central Texas market find its footing as housing metrics slow their pace. For instance, 2023 saw only a slight decline of 3.0 percent in home sales at 30,353 when compared to its 24.2 percent drop in 2022. The median price for an Austin-Round Rock home also dropped, at 10.2 percent, to $450,00, while new listings dipped 7.0 percent, with 42,623 listings at the end of the year. Homes spent an average of 84 days on the market in December, a slight 9-day jump up the same period in 2022. Active listings increased 4.6 percent to 7,717 listings alongside a 13.8 percent growth in pending sales, which resulted in 2,082 sales closing out the year.
Despite several economic factors still influencing the national housing market, the Austin-Round Rock MSA shows signs of stability and a continued effort to return to a new normal in 2023. The new 2024 president of the Austin Board of REALTORS®, Kent Redding, shared his remarks on the year-end report.
“In 2023 the Austin-Round Rock MSA housing market continued its move towards a more sustainable pace…Housing inventory reached the highest level it’s been in more than eight years, and while there was a drop in closed sales and median close price, these were both symptomatic of higher mortgage rates. In the current housing market, prospective homebuyers and sellers should engage the services of an expert REALTOR® who can help navigate the real estate transaction process. Buyers can utilize this favorable market condition to get pre-qualified while sellers can use the time afforded by the balanced market to enhance their property before listing it for sale.”
One of the most consequential factors that impacted homebuyers in the 2023 housing market was rising mortgage rates, according to Clare Losey, Ph.D., housing economist for ABoR. She identifies this 2023 uptick, along with a lack of accessible housing, as the main facets in dissuading buyers and sellers, specifically first-time homebuyers, from entering the market. “The single biggest factor constraining the Central Texas housing market in 2023 was the gradual rise in mortgage rates, which peaked in late October. This caused sellers, and buyers essentially, to continually readjust to the current rate environment,” she stated.
As we look forward to a new year of real estate, Losey predicts several trends to take place over the course of the year, especially as the market returns to pre-pandemic numbers: “Home prices and sales will likely remain essentially flat, to the tune of a 5.0% increase or decrease year over year in 2024. While the market continues to find its footing, it’s noteworthy that total sales dollar volume is up 30.5%, there are 21.9% more active listings and 38.4% more months of inventory today than there were five years ago. Housing demand is still strong and the uptick in the inventory of homes for sale in 2023 has provided more options for repeat buyers.”
Curious about what this market update means for you? For more insights into your local housing climate, contact The Cummings Team® today!