The Austin real estate market is always in flux, and January 2023 is no exception. In this post, we'll take a look at the current state of the market, analyze home prices, and discuss the forecast for the Austin housing market in the coming months. Whether you're thinking of buying or selling a home, it's important to stay informed about the local real estate market.
Home Prices in Austin
The median home price in Austin has been rising year over year in the greater Austin area, and 2022 was no exception. Last year, the median sales price in the Austin-Round Rock MSA rose 11.4% to $503,000. In the city of Austin, we saw a 10.3% year over year increase to $590,000. However, this does not show the true picture. We are definitely shifting towards a buyer’s market. Prices are softening, and we are seeing sellers contributing towards buyer’s closing costs quite frequently. This strategy is not reported in the stats, but effectively lowers the price of a home.
Real Estate Market Forecast for Austin
The Austin housing market has been relatively stable over the past few years, and that is expected to continue in the near future. However, rising interest rates are already significantly affecting the number of buyers in the Austin market. When interest rates rise, buyers lose purchasing power. The buyers that could afford a $500,000 home in 2021 now may only be able to afford a $350,000 home, and other buyers are simply pushed out of the market. That being said, Austin is uniquely positioned as a job-magnet with more and more companies relocating here every day. These companies bring jobs, and those people need places to live. The influx of new Austinites will likely support housing demand, thus curbing the Austin real estate market from a drastic decline in home prices.
Final Thoughts on the austin market
Overall, the Austin real estate market is showing signs of stability after a wild past few years. The market is shifting in favor of buyers so if you are looking to move or invest, it’s a great time. Conversely, if you don’t have to sell, I would hold off on listing your Austin property at this time. Real estate is hyper-local and incredibly time-sensitive. It's important to stay informed about the local real estate market so that you can make informed decisions. Contact us if you have questions about your unique situation!
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