AUSTIN-ROUND ROCK MSA HOUSING MARKET DEMONSTRATES RESILIENCE DESPITE HIGH INTEREST RATES

 

“July’s housing market activity underscores the resiliency within the MSA’s market,” Ashley Jackson, 2023 ABoR president, said. “We now have a direct year-over-year comparison of when our market began stabilizing, and the big fluctuations we’ve previously seen have started to even out. Potential buyers who have been on the fence about purchasing a home should know interest rates are settling, and now is the time to act.

“With a rise in pending sales and closed sales remaining consistent, this further indicates that buyers are becoming more accustomed to the higher interest rate environment and understand that elevated mortgage rates may continue. We are seeing a year-over-year decline in median sales prices, as buyers cannot afford the same price points with these higher rates. Looking ahead, the odds of Central Texas experiencing a recession continue to decline with each passing month.
Despite mortgage rates rising, Austin’s economy–which is fueled by a strong labor market–continues to outperform national expectations.”  Clare Losey, Ph.D., housing economist for ABoR

Losey added that although the market is steady, affordability remains a constraint. “In 2023, the median family income in the Austin-Round Rock MSA is $122,300. This means buyers generally can afford a home priced between $300,000 to $400,000, however, less than 40% of homes sold in the Austin-Round Rock MSA in July of this year alone fall into this price range.

You can read all the details about the current market stats here. 

To see a comparison to the Market Stats from July 2022, click here.