In the new year, median home prices in the region have dropped, with the Austin Board of REALTORS® latest Central Texas Housing Report for January showing the most significant price drop since July 2011. However, the market still shows a significant demand for inventory to reach a more balanced state, as the monthly housing inventory for January stayed relatively the same at 2.7 months. The industry standard for a balanced real estate market is six months of available inventory for buyers and sellers.
The current ABoR president, Ashley Jackson, has remarked that the market is finally reaching the post-pandemic normal it has been searching for. To stay competitive with pricing, it’s essential to understand the direction of the market, and while January data shows significant promise for a more stabilized climate, keeping track of the market and partnering with experienced REALTORS® is an essential step in a home sale. Jackson further cautions buyers and sellers on analyzing ABoR’s monthly housing reports, adding, “as we compare the market today to what was an abnormal market in the previous three years, looking at the year-over-year numbers needs the added context of comparing trends month-to-month…It is important to remember that when we compare year-over-year, we are currently comparing to an abnormal time in our market. As we reset our expectations to reflect the information our REALTOR® experts are seeing in real-time, we need to look at month-to-month trends to have a true sense of what is going on in the region. REALTORS® are seeing an uptick in activity from December 2022 to January 2023, and that is reflected in the new and pending listing trends month-to-month.”
As the real estate market works to reach a more typical climate for buyers and sellers, the rising interest rates have proven to be a challenge for buyers, often dissuading them from entering the market. However, Ashley Jackson emphasizes the importance of hyper-local data and experts to help navigate the market, reminding buyers to steer clear of overexaggerated headlines meant to incite concern.
“Housing affordability woes combined with higher interest rates play an outsized role in market activity. There is no national real estate market. Consumers need to follow local REALTORS® and local news while taking sensational headlines and reports with many grains of salt,” Jackson says.
“Now more than ever, it is important for buyers and sellers alike to work with a REALTOR® who best understands how to navigate the changing landscape of our real estate market.”
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