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Austin area is seeing lower housing prices, more inventory

This led to an all-time inventory level of enough houses for 2.9 months, which is the highest seen in the area since September 2018.

AUSTIN, Texas — The Austin-area housing market has begun to see a stabilization in price and an increase in inventory, according to a recent report.

A report from the the Austin Board of REALTORS showed that the month of August saw an increase of 170.2% in active listings across the five-county area of Travis, Williamson, Hays, Bastrop and Caldwell. This led to an all-time inventory level of enough houses for 2.9 months, which is the highest seen in the area since September 2018.

The median home price increased by 5.5% annually to $496,039, which set a price record and indicated that home prices are starting to normalize after seeing a period of exponential growth.

Additionally, residential home sales declined by 23%. The biggest challenge in the next year will be maintaining and continuing housing inventory according to Mark Sprague, state director of information capital at Independence Title.

“Austin, along with the other Texas metropolitan areas, may continue to feel the effects of the previously unsustainable housing market due to the lack of inventory," said Sprague. "We are just now getting up to three months of housing inventory, which is still short of the 6 to 6.5 months of inventory needed to be considered a healthy market.”

In the city of Austin, home sales decreased by 30.4%, while the cost of houses rose by 3.6% to $555,000. This is paired with Travis County, which saw home sales decrease by 28.9% but have the cost of homes increase by 8.6% to $570,000.

To read the full report and breakdown of individual counties, visit its website here.

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