Austin’s housing market continues to cool, but low inventory and high interest rates are making it tough to take advantage of a more buyer-friendly market.
The Austin metro saw 3,147 residential sales in June, marking an 8.5 percent decrease year-over-year, the Austin American-Statesman reported, citing the Austin Board of Realtors.
The median price dropped 9.6 percent last month compared to June 2022. New listings fell nearly 24 percent year-over-year to 4,638, and the number of homes on the market shot up 38 percent to 9,631 active listings. Homes spent an average of 61 days on the market, which was 43 days fewer than in June 2022.
The data shows a significant shift in Austin’s housing scene compared to previous years, when bidding wars, skyrocketing prices and minimal days on market were prevalent throughout the metro. Austin has since pivoted to more of a buyer’s market after the post-Covid housing boom peaked last year.
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Climbing mortgage rates and scarce inventory present new challenges for prospective buyers, according to Austin Board of Realtors economist Clare Losey.
“The Central Texas region simply needs more inventory — particularly at price points affordable to first-time buyers — as home prices remain elevated relative to incomes across the region,” Losey told the outlet.
The current interest rate for a 30-year mortgage is 7.6 percent, but more sellers are lowering prices to adjust to the high rates. Another silver lining for home shoppers is the strength of Central Texas’ overall economy, Losey told the outlet. Steady job growth and a resilient economy can help Austinites “withstand less than ideal economic conditions,” she said.
—Quinn Donoghue