During the first six months of 2023, the Austin-Round Rock MSA housing market remained robust and continued to normalize despite macroeconomic factors impacting the housing market and economy, according to the Austin Board of REALTORS® Central Texas Housing Market Report. Despite increased inventory across the region, long-term solutions to address affordability and housing availability are still needed. ABoR will once again convene experts from across the community this month to continue advancing housing solutions designed to ensure the future of the region’s housing market is equitable and sustainable.
“For the second year in a row, ABoR is hosting a summit focused on the state of the region’s housing market, the need to prioritize housing and how to enact change for the future,” Ashley Jackson, 2023 ABoR president, said. “Yes, inventory is increasing and median prices have declined, but this does not mean no action is required to address the region’s housing affordability issues. We are seeing the market normalize after years of record-setting pace, but it is our job to help the region’s housing market fundamentally improve so that anyone that wants to buy a home here can find one within their budget.”
Last month across the MSA, residential home sales declined 8.5% year over year to 3,147 closed sales while the median price also dropped 9.6% to $483,000 for the month of June. Sales dollar volume fell 15.6% to $1,921,766,942 and new listings declined 23.6% to 4,638 listings.
The number of homes on the market jumped 38.4% to 9,631 active listings, causing housing inventory to skyrocket to 3.7 months of inventory, up 1.6 months from last June. Pending sales increased 19.1% to 3,110 transactions and homes spent an average of 61 days on the market, 43 more days than June 2022.
Dr. Clare Losey, ABoR housing economist, sees a market that has held steady but still needs increased inventory to house our region’s growing population.
“Despite a slight uptick in mortgage rates in June, the median sales price rose a modest 2.7% from May. Overall, the moderation in home prices throughout the region over the past year has eased the affordability constraint posed by higher rates, but more work needs to be done across the region and into the future to fully address this challenge. The Central Texas region simply needs more inventory—particularly at price points affordable to first-time buyers—as home prices remain elevated relative to incomes across the region.”
Losey added that the region’s economy is a major factor in the housing market’s performance.
“The diverse and resilient economy that has been built in Central Texas, particularly over the past two decades, is instrumental in helping the region, and our housing market, withstand less than ideal economic conditions. It is important to remember that the market continues to moderate in the wake of unsustainable price growth and sales activity during the pandemic, but remains robust. The median sales price in the MSA appreciated by nearly 50% from June 2019 to June 2023. The ability to buy a home remains the best way to create generational wealth, and that needs to be more accessible to everyone.”
ABoR will offer a holistic view of the housing market, local, state and national economies, and what the future holds for economic development in Central Texas at the Central Texas Housing Summit on July 26.
“We’re thrilled to bring together REALTORSⓇ, economists, community members and business leaders to offer valuable insight into the current state of the regional economy and housing market,” Jackson added. “This event is vital to working together to find solutions and enact change to ensure that we address the region’s inventory needs and affordability challenge for today and the coming decades.”
Read the full, original report here.
