HOME SALES IN AUSTIN REMAIN STRONG DESPITE CONTINUED HIGHER RATES

Housing inventory increases while median sales prices drop

AUSTIN, TX — The median home price across the Austin Round-Rock MSA dropped 8.4% to $424,450 last month, indicating Austin’s housing supply is becoming available at lower price points, but remains considerably elevated relative to pre-pandemic levels according to the Austin Board of REALTORS® November 2023 Central Texas Housing Market Report. While mortgage rates remain elevated, the Central Texas housing market experienced a slight increase in residential homes sold across the MSA, rising 0.2% to 2,065 total sales.

“Buyers in Central Texas now have a more abundant selection of homes to peruse than in previous years,” Ashley Jackson, 2023 ABoR president, said. “The drop in median home prices indicates buyers can be a little more selective in the search for a home that checks all their boxes. For buyers actively shopping for a home—and those who have been sitting on the fence waiting for their time to strike— now is the time to contact your REALTOR® and get serious about buying a home.”

Clare Losey, Ph.D., housing economist for ABoR, noted that elevated mortgage rates are contributing to the decline in home prices and an increase in active listings as homes remain on the market for longer.

“A rise in mortgage rates reduces buyers’ purchasing power, so the moderation in home prices helped to offset some of the decline in affordability. However, rates peaked in late October and early November, signaling a rise in buyers’ purchasing power moving into 2024.”