AUSTIN, Texas — 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.”

In November, sales dollar volume dropped 5.7% year over year to $1,117,612,190 across the MSA. Homes spent an average of 75 days on the market, up 18 days from November 2022, while housing inventory increased 0.7 months to 3.7 months of inventory. New listings rose 11.6% year over year to 2,676 listings, active listings increased 7.2% year- over year to 9,334 listings and pending listings rose 9.2% year over year to 2,065 listings.

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."

The Austin City Council recently passed Phase I of the Home Options for Middle-income Empowerment initiative, which will create more homeownership and rental options for current and future residents through a balanced approach. As ABoR and residents in the Central Texas area continue to advocate for more housing inventory and attainable housing options across the region, Losey shared that the jump in listings is an encouraging sign for buyers.

"The year-over-year uptick in new and active listings provides buyers with more options, which is a welcome reprieve from the starved market many have endured in recent years. While this current increase in listings gives our market some breathing room, our city should embrace opportunities to generate more housing supply."

Read the full, original article here.