BUYERS AND SELLERS SEE AMPLE OPPORTUNITY IN THE AUSTIN-ROUND ROCK MSA HOUSING MARKET
“Last month’s housing market activity demonstrates not only a stable market, but one where optimism for the months ahead continues to grow,”
Ashley Jackson, 2023 ABoR president
In May, home buyers and sellers saw more opportunity across the Austin-Round Rock MSA according to the Austin Board of REALTORS® May 2023 Central Texas Housing Market Report. Housing inventory grew 2.2 months to 3.4 months of inventory and active listings soared 118.9% to 8,960 active listings indicating buyers and sellers view the market as a more favorable environment than in recent months.
“Last month’s housing market activity demonstrates not only a stable market, but one where optimism for the months ahead continues to grow,” Ashley Jackson, 2023 ABoR president, said. “With the ebb and flow of mortgage rates, this is when the value of a REALTOR® comes into play. They can help buyers find down payment assistance programs or identify financing options. Real estate remains the most powerful long-term investment and having a trusted expert in your corner is crucial.”
In May, pending sales across the MSA slightly dipped 0.5% to 3,243 pending sales, while homes spent an average of 65 days on the market, up 49 days from May 2022. The median home price declined 15.0% to $467,500 while residential home sales also decreased 4.2% year-over-year to 3,411 closed sales. At the same time, sales dollar volume dropped 14.8% to $2,068,145,860.
Dr. Clare Losey, the housing economist for ABoR, provided an analysis of how economic factors are impacting the housing market.
“Nationally, from May 2022 to May 2023, homebuyers’ purchasing power declined by an estimated 8% to 9% due to the rise in mortgage rates–May’s mortgage rates, averaging 6.4%, were among the highest they’ve been all year. However, in Austin, the moderation in home prices has helped to mitigate the decline in purchasing power. In fact, from May 2022 to May 2023, the monthly mortgage payment declined an estimated 3% to 4%.”