2023 CENTRAL TEXAS HOUSING MARKET PERFORMANCE UNDERSCORES NEED FOR IMPROVED HOUSING AFFORDABILITY

Home sales accounted for more than $17 billion in economic activity in 2023

AUSTIN, TX — In 2023, the median price for a home in the Austin-Round Rock MSA decreased 10.2% to $450,000, according to the Austin Board of REALTORS® December 2023 and Year-End Central Texas Housing Market Report. When compared to the steep 24.2% decline in pending sales in 2022, 2023 saw a slight 3.0% decline to 30,353 sales emphasizing that the Central Texas housing market continues to find its footing despite macroeconomic factors impacting the broader housing market and economy.

Kent Redding, 2024 ABoR president, said. “Housing inventory reached the highest level it’s been in more than eight years, and while there was a drop in closed sales and median close price, these were both symptomatic of higher mortgage rates.”

In the month of December, closed listings across the MSA declined 8.9% to 2,295 year-over-year as sales dollar volume decreased 8.5% to $1,270,818,458. The median sales price dropped 1.4% to $443,753. New listings increased 8.4% to 1,956 listings, active listings ticked up 4.6% to 7,717 listings, and pending sales rose 13.8% in December to 2,082 sales. Last month, homes spent an average of 84 days on the market, 9 more compared to December 2022.

Clare Losey, Ph.D. said, “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.”

“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.”

You can read all the details about the current market stats here. You can also visit www.abor.com for more information.