INCREASE IN CLOSED SALES INDICATE CONTINUED BUYER CONFIDENCE ACROSS AUSTIN-ROUND ROCK MSA HOUSING MARKET
"An 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, 2023 ABoR president
In the Austin-Round Rock MSA, closed sales rose by 1.4% to 2,939 sales, the
first increase in closed sales year-over-year since February 2022, according to Austin Board of REALTORS® August 2023 Central Texas Housing Market Report. Through the Austin-Round Rock MSA, the region also experienced an 8.8% month-over-month increase in closed sales, a healthy indication of buyer confidence in the market. Housing inventory also continues to show gradual progress with a year-over-year increase of 1.0 month to 3.8 months of inventory.
“Austin’s current housing market allows for potential home buyers to be picky,” Ashley Jackson, 2023 ABoR president, said. “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 a 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.”
While housing inventory continues to show signs of improvement, Clare Losey, Ph.D., housing economist for ABoR, pointed out that despite this uptick in inventory, there is a limited supply.
With interest rates expected to change once again before the end of the year, Losey advises both buyers and sellers to remain up to speed on the varying factors impacting the market so they can make the best decision.
“It’s important to note that it takes time for current mortgage rates to trickle into the market. Moving forward, any predictions about our current housing market become particularly difficult in light of all the moving factors at play. With the Federal Reserve expected to increase interest rates in either November or December of this year, this could induce upward pressure on mortgage rates, which would mean less buying power for buyers this fall.”