AUSTIN, Texas — It's another sign that Austin's booming housing market has cooled off.
Realtors in Central Texas say home prices are still falling, and inventory is up, but high interest rates are still keeping some buyers out of the game.
Austin is a city with high rises and high prices, but that could change in 2024.
"Hopefully, my parents will leave me their house," Patricia Zermeno said.
An Austinite of 12 years and a former homeowner, Zermeno jokes about the state of the housing market. She said with interest rates as high as they are, it feels impossible to own again.
"It doesn't seem very fathomable right now," Zermeno said. "It's very difficult."
Clare Losey, a housing economist for the Austin Board of Realtors said Zermeno is not alone.
"Buyers [are] sitting on the sidelines right now, who otherwise would have purchased a home but can't just because rates are that much higher," Losey said.
However, she said even with higher rates, homes are still selling in Austin.
"Higher rates this summer and moving into the fall than we saw last year translated into really no definitive change in sales activity," Losey said.
In the Austin area, there was a 0.2% increase in sales this November compared to last year. In addition, Losey said interest rates may fall next year.
"The Federal Reserve has announced that essentially its rate hiking cycle is over," Losey said.
Combine that with falling home prices, and it could give buyers more power. But not everyone is convinced.
"It is very hopeful that it is going down," Zermeno said. "[But] I don't know how much I would trust the Federal Reserve saying that they're not hiking the interest rates any further."
Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.