Austin
Median home prices drop 15% in Austin
Austin’s median home price dropped to $529,495 in March. (Courtesy Adobe Stock)
Prices are dropping, inventory is rising, and the housing market is starting to move at a healthy pace, Austin Board of Realtors’ March report shows.
By the numbers
In March, median home prices in the city of Austin dropped just over 15% year over year to $529,495. Median home prices in the Central Austin region also dipped about 10% year over year from $795,000 in March 2022 to $700,000 last month.
ABoR’s report shows monthly housing inventory has continued to trend upward in Austin, with 2.8 months on inventory last month compared to only half a month of inventory in March 2022. Housing inventory in the Central Austin region reached 3.6 months last month, a 500% increase since last year.
Austin’s active listings surged 307.9% last month to 2,166 listings. New listings also ticked up about 10% year over year.
Interpreting the data
Clare Losey, ABoR’s housing economist, said the drop in home prices and steady uptick of housing inventory are signs the market is stabilizing after an abnormal market during the height of the pandemic.
“The increase of new listings in March, specifically month over month, indicates rising seller confidence, and the recent decline in mortgage rates provided momentum for homebuyers,” Losey said. “Mortgage rates are projected to remain consistent for the rest of the year, making now a great time to make a move.”
Losey added that recent layoffs haven’t impacted Austin’s job growth or housing demand.
“In fact, Travis County’s job market is projected to grow at nearly double the pace of job growth statewide over the next decade, with the leisure and hospitality sector leading that growth.”
By Katy McAfee
Government Reporter
Katy joined Community Impact in 2022 and covers transportation and government for Travis County, Rollingwood and West Lake Hills. Prior to CI, Katy graduated from the University of Cincinnati with a bachelor’s degree in journalism and a certificate in deaf studies as well as serving as the features editor for her school’s student newspaper, The News Record. When she’s not writing, Katy enjoys watching movies and spending time outdoors.
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I'm an enthusiast with a deep understanding of real estate markets and housing trends. To demonstrate my expertise, let me provide some insights related to the article about the drop in median home prices in Austin:
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Median Home Prices: The article mentions that the median home price in Austin dropped to $529,495 in March. Median home price is a key indicator in the real estate market. It represents the middle value of all the home prices in a given area. In this case, the median home price decreasing by 15% year over year indicates a significant shift in the local housing market.
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Inventory: The article discusses housing inventory trends. Housing inventory refers to the number of homes available for sale in a specific market. In Austin, it mentions that housing inventory has been rising, with 2.8 months of inventory in March compared to just half a month in March 2022. An increase in housing inventory suggests a more balanced market, where there are more homes available for buyers to choose from.
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Active Listings and New Listings: The article mentions that active listings in Austin surged by 307.9% in the past month to 2,166 listings. Active listings are homes that are currently available for sale. Additionally, new listings increased by about 10% year over year. This data indicates that more homes are being listed for sale, which can influence market dynamics.
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Mortgage Rates: Clare Losey, the housing economist mentioned in the article, highlights the impact of declining mortgage rates on the housing market. Lower mortgage rates can stimulate demand from homebuyers as it makes homeownership more affordable. It's a crucial factor influencing housing market trends.
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Job Market: The article briefly touches on the job market in Austin, suggesting that recent layoffs have not significantly impacted job growth or housing demand. This is important because job growth often correlates with housing demand. Austin's robust job market, especially in sectors like leisure and hospitality, contributes to the demand for housing in the area.
In summary, the article discusses significant changes in Austin's real estate market, including a drop in median home prices, rising housing inventory, and increased listings. These factors are indicative of a market that is stabilizing after experiencing volatility during the height of the pandemic. Additionally, factors like mortgage rates and job growth play a crucial role in shaping the local housing market's dynamics.
