Austin Real Estate Chills: Prices Stabilize December 2023

Austin real estate market news for January 2023 is here. The Central Texas housing data shows that the Austin Round Rock MSA experienced a decrease in residential homes sold down 8.9% year-over-year to 2,295 total sales that resulted from a drop in demand. The decline in inventory turnover leveled Austin home prices a bit, with interest rates playing a key role in cooling off the market in 2023.

According to the Austin Board of REALTORS® December 2023 Central Texas Housing Market Report, the Austin-Round Rock MSA, experienced an increase month-over-month in closed sales by about 230 units. Sellers met the market where it was as buyers were challenged by some of the highest rates of the year.  Pending sales month-over-month were also up by about 20 units but seasonally comparing year over year, December was up by 13%.

Austin real estate news: home sales for the Austin-Round Rock MSA comparing month over month December to November 2023

✔ Overall, the median sales price was up (from $424,450)Austin Round Rock MSA

✔ Sold units were up (from 2,065)
✔ New listings were down (from 2,676)
✔ Active listings were down (from 9,334)
✔ Pending home sales were up (from 2,065)
✔ Months of inventory were down (from 3.7)

Clare Losey, Ph.D., housing economist for ABoR states “The single biggest factor constraining the Central Texas housing market in 2023 was the gradual rise in mortgage rates, which peaked in late October. This caused sellers, and buyers essentially, to continually readjust to the current rate environment. While we have seen some leveling off in home prices, the Central Texas region still lacks a sufficient inventory of affordable homes for sale, especially those homes priced below $300,000, which is keeping many would-be first-time homebuyers on the sidelines.”

2023 year as a whole is pictured below: 

Homes for sale in Austin l Central Texas housing market

Losey identified higher mortgage rates as being the biggest constraint for potential homebuyers in 2023 and underscored the lack of housing accessibility, specifically for first-time homebuyers.  When looking to 2024, she foresees annual trends to be relatively consistent with this year and mentions that current data is favorable compared to pre-pandemic numbers.

Losey noted that the decrease in median sales price year over year pales in comparison to the equity gained over a longer period.

Austin Real Estate Market Predictions for 2024

“Home prices and sales will likely remain essentially flat, to the tune of a 5.0% increase or decrease year over year in 2024. While the market continues to find its footing, it’s noteworthy that total sales dollar volume is up 30.5%, there are 21.9% more active listings and 38.4% more months of inventory today than there were five years ago. Housing demand is still strong and the uptick in the inventory of homes for sale in 2023 has provided more options for repeat buyers”, predicts Losey.

Austin real estate news market statistics by county for the Central Texas Housing Market December 2023: Median Austin home prices by county

Months of inventory are calculated by dividing the number of homes listed for sale by the average number of homes sold per month within 12 months.

Losey identified higher mortgage rates as being the biggest constraint for potential homebuyers in 2023 and underscored the lack of housing accessibility, specifically for first-time homebuyers.

When looking to 2024, Losey foresees annual trends to be relatively consistent with this year and mentions that current data is favorable compared to pre-pandemic numbers.

Losey noted that the decrease in median sales price year over year pales in comparison to the equity gained over a longer period.

2023 Year-To-Date Austin home prices pictured below: 

Homes for sale in Austin l Central Texas housing market

Austin Real Estate Market Predictions

“Home prices and sales will likely remain essentially flat, to the tune of a 5.0% increase or decrease year over year in 2024. While the market continues to find its footing, it’s noteworthy that total sales dollar volume is up 30.5%, there are 21.9% more active listings and 38.4% more months of inventory today than there were five years ago. Housing demand is still strong and the uptick in the inventory of homes for sale in 2023 has provided more options for repeat buyers.”

Central Texas Housing Market Median Single-Family Home Sold Prices for Austin, Georgetown, Round Rock, Leander, Pflugerville, Cedar Park, Buda, Kyle, Hutto, Liberty Hill and beyond.

This data combines all residential home types and only lists cities with at least 38 closed sales units to make the top 14.

Sales units were up by about 200 combined in December over November of the homes for sale in Austin and the cities listed in Central Texas with the most sales.  Of the cities featured, San Marcos, Buda, and Manor showed very little shift in median sold prices.

⬇️Median sales prices were down in Austin, Round Rock, and Liberty Hill. All 3 of those cities had more sales in December than in November.

⬆️Median sales prices increased MoM for Leander, Georgetown, Hutto, Pflugerville, Jarrell, and Kyle.

Many of these closings are from buyers finding the time to shop in November. Some of these sales may be a push from new home builders eager to close out homes by the end of the year, home buyers wanting to get in before Christmas, or sellers with personal time to move before the new year. This is a seasonably slow time of year, but this is also the time of year when deals are made.

Austin home prices l Austin Realtor l Austin real estate market l homes for sale in Austin

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Austin real estate market data compiled by ACTRIS© Matrix data through ABoR. Information deemed reliable but not guaranteed and should be verified.  Content is “AS IS,” without any warranty, express or implied. Results were calculated from the number of listings in the MLS at the date of the report. Off-market data not included.