ABOR: BUYERS WILLING TO ENTER MARKET 
DESPITE HIGHER INTEREST RATES

Closed sales increase, median price declines across MSA

 

AUSTIN, TX — The median home price across the Austin-Round Rock MSA dropped 7.5% to $435,000 in October, according to the Austin Board of REALTORS®. The market experienced an increase in residential homes sold across the MSA, which rose 4.1% to 2,337 total sales demonstrating that buyers are finding value in the market despite higher interest rates.

“An increase in sales and a jump in pending sales indicates buyers continue to enter the market and are finding more bargaining power throughout the transaction,” Ashley Jackson, 2023 ABoR president, said. “The market is still normalizing, and as we look to the end of the year, it’s important to remember that working with a REALTOR® who can share their expertise and help buyers and sellers alike, is the surest path to success in this market.”

“Despite higher mortgage rates this summer and fall, closed sales across the MSA rose 4.1% year over year in October to 2,337 sales. With the close to original list price ratio hitting 93.1% in October, it is also a reminder that buyers have more negotiating power than at virtually any point since March 2020.”

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

“The median price is still 44% higher than it was in September 2018. Homeownership is still the best way to create generational wealth, and the region would benefit from reforms and policies that make homes more attainable and buying more accessible for people across different income levels.”

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

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