AUSTIN, Texas — While the Austin-area housing market is still seeing plenty of movement, a new study from Redfin says the area is seeing a cooldown that it hasn't seen in almost a decade.
Not long ago, homes in Austin were flying off the market. Some never even made it there before they were sold.
But a new report from Redfin shows Austin's market has changed. Analysts say the Austin area is seeing an 8-year high for housing inventory with the average home sitting on the market for at least two months.
In 2023, about 36% of local listings saw price decreases – one of the highest rates in the country.
Real estate agent Nathan Gogo said that's showing stabilization in a market that was once so crazy.
"They were buying anything. And so they were buying them probably higher than they should have to, which is also why I think a lot of homes are sitting inventory," Gogo said. "So the pricing that they want is not, again, justified in this market necessarily by the time they sell it. And so they're pricing too high."
He said a lot of this is a sign of Austin's market hopefully returning to equilibrium.
"In 2021 or 2022, it wasn't fun for anyone. The bidding wars that it was, it was a very emotional and crazy time," Gogo said.
And with interest rates expected to go down, 2024 could be good for both buyers and sellers.
"Interest rates going down will be good for the sellers, typically because that means more buyers are more comfortable jumping into the market, buying a home. And that usually means, obviously, sellers home selling," Gogo said.
So the new year could bring some relief for the local housing market.
Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.