Home prices are down in Austin after soaring to new heights last year.
The median sales price in the area was $466,705 last month, down 15 percent from $550,000 in April 2022, the Austin Business Journal reported, citing data from the Austin Board of Realtors.
The drop in prices bodes well for a market that saw home values skyrocket for months on end throughout the pandemic, causing buyers to make offers far above asking prices. Listings often closed a day or two after hitting the market. However, stability has arrived following the housing boom’s peak last summer.
“This is still a market that is seeing lots of activity, just not at a record-setting pace, and that is to be expected given broader economic trends,” Austin Board of Realtors president Ashley Jackson told the outlet. “Home prices are moderating, pending sales are holding strong, and homes on the market last month are selling closer to list price. These are all signs of a market that is still balancing and doing so in a healthy way.”
Wages are also finally going up in the Austin metro, which had been a major concern as housing costs escalated. The long-term outlook of affordability in Austin is much better now than it was last year.
Economic factors such as rising interest rates, bank failures and fears of a possible recession have contributed to declining home prices. Current market conditions equate to more time on the market, meaning buyers can more carefully weigh their options before making bids, and sellers are forced to lower prices.
Lessened demand has led to an increase in inventory. The metro’s 3.2 months of inventory last month marked a 2.4 month increase year-over-year.
“The doubling of mortgage rates over the past year-plus has slowed the pace of home sales in our region,” Clare Losey, a housing economist with ABOR, told the outlet. “As such, homes are spending more time on the market. The rise in active listings has brought much-needed inventory to our market.”
—Quinn Donoghue
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