Articles

July 2023

Your Guide to the Central Texas
Real Estate Market 

Keep in mind, the above monthly statistics for home sales in the Austin-Round Rock MSA are “year-over-year” statistics showing the comparison of June 2022 with June 2023.
 
The median sales price has increased over the past several months.  However, the median sales price is 9% less than it was a year ago.
 
Homes are taking longer to sell with the Average Days on Market at 61 days.
 
Our home inventory continues to rise resulting in a more stable market between buyers and sellers.

Central Texas 5-Year Trends

Despite the number of home sales declining over the past month, the median price continues to increase in the 5-county area:  Travis, Williamson, Hays, Bastrop and Caldwell Counties.

The number of homes currently for sale in the Austin Board of Realtors MLS has steadily grown during 2023 giving homebuyers more options from which to choose.

The Austin Round-Rock MSA has almost reached 10,000 listings, which is just shy of 4 months of home inventory causing a more stable market.
In 2023 the majority of homeowners are reaping the benefits are massive home equity.

Mortgage Interest Rate History

The chart above represents weekly averages for a 30-year fixed-rate mortgage, according to FreddieMac. The average is for 1971 through 2023 as of June 15th.

Mortgage Interest Rate Future

National housing economists and large company CEOs have predicted lower interest rates over the next 2 years.

COVID-19 Reset Post-Pandemic
Average Annual House Price Index (HPI) Change
2023 (Forecast) vs 2022

Compared to other states nationwide, Texas is faring well at a 2% to 4% projected Housing Price Index increase.

Multi-Family Construction in Austin

Austin has the highest number of apartment complex units being built and completed in 2023 compared to other major metros in the nation
 
To put this in perspective, Austin has 17,000 new apartment units coming on board in 2023 compared to Atlanta which has 16,000 units coming on board. However, Atlanta has triple the population of Austin, resulting in easier absorption of the influx of units.
 
The majority of construction is comprised of 4 & 5 star apartment complexes.  The increase in the number of leases on the market could in turn effect residential home leases.  A decline in leasing prices could affect the number of people buying versus renting.
 
To breakdown the financial gain/loss of renting versus buying, click on the link below: