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, housing economist for ABoR, commented on the status of home purchasing power in the Austin 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%.”
Losey also weighed in on buyer and seller expectations in the market.
“Last month, homes sold for 94% of their original list price. The continued uptick in that figure demonstrates that sellers are pricing their homes more accurately and buyers are more responsive to those prices than in the earlier part of 2023. Context matters, and May’s 2022 median home price, $550,000, was the highest median home price the Austin region has ever seen. Relative to pre pandemic levels, last month’s median home price is up 44%.”
Jackson also encouraged people to attend ABoR’s annual Central Texas Housing Summit to be held next month.
“No issue is more critical than the future growth of our region than housing. Austin recently emerged as the 10th largest city in the country and three of the top four fastest-growing cities in the nation are in Central Texas. People from all over the world want to call Austin home, and we must put housing first. We urge the community to attend our annual Central Texas Housing Summit in July to hear and learn from experts discussing all facets of the real estate industry affecting sellers, buyers, renters and homebuilders.”
Read the full, original report here.
