CENTRAL, Texas — Good news for homebuyers in Central Texas: median home prices had the largest drop since July 2011, according to a new report.
According to the report released by the Austin Board of RELATORS (ABoR), median home prices dropped 6.3%.
“January’s data demonstrates the Austin-Round Rock MSA market is continuing to find a post-pandemic normal," said Ashley Jackson, 2023 ABoR president. “As we compare the market today to what was an abnormal market in the previous three years, looking at the year-over-year numbers needs the added context of comparing trends month-to-month. Without this context, the year-over-year data may not be as informative as the market continues to adjust.”
Although January saw a price drop, the housing inventory remained flat from December 2022, according to the report. The report also looked at several other key components:
- Home sales were down 27.3% year-over-year
- New listings dropped by 16% year-over-year
- Pending listings dropped by 16.7%
“It is important to remember that when we compare year-over-year, we are currently comparing to an abnormal time in our market. As we reset our expectations to reflect the information our REALTOR® experts are seeing in real-time, we need to look at month-to-month trends to have a true sense of what is going on in the region," Jackson said. "REALTORS® are seeing an uptick in activity from December 2022 to January 2023, and that is reflected in the new and pending listing trends month-to-month.”
This report also looked into the city of Austin, Travis County and the surrounding Central Texas areas, all of which saw an uptick in the median prices for homes.
“Outlying areas like Caldwell and Hays counties are the most affordable pockets in Central Texas. When we have a city like Austin challenged by affordability, the entry point in surrounding areas will slightly increase as people try and find neighborhoods they can afford. These outer county data sets are reflective of affordability disappearing from Austin and closer-in suburbs hence why buyers are moving further out in Central Texas," Jackson said.
Even though median home prices have dropped in the area, the big challenges that Central Texas has seen, including rising interest rates and affordable housing, are still prominent.
“Housing affordability woes combined with higher interest rates play an outsized role in market activity. There is no national real estate market. Consumers need to follow local REALTORS® and local news while taking sensational headlines and reports with many grains of salt," Jackson said. "Now more than ever, it is important for buyers and sellers alike to work with a REALTOR® who best understands how to navigate the changing landscape of our real estate market.”
Below is a break down of the numbers for Austin and the surrounding counties:
City of Austin
- Total home sales decreased by 37.3%
- Median home price decreased by 4.6%
- New listings increased by 13%
- Active listings increased by 387.5%
- Monthly housing inventory increased to 2.2 months of inventory
Travis County
- Home sales decreased by 31.7%
- Median home price decreased by 5.9%
- New listings increased by 17%
- Active listings increased by 421.9%
- Pending sales decreased by 22.3%
- Monthly housing inventory increased to 2.4 months of inventory
Williamson County
- Home sales decreased by 26.2%
- Median home price decreased by 4.9%
- New listings increased by 6.8%
- Active listings increased by 6.8%
- Pending sales dropped by 11.4%
- Monthly housing inventory increased to 2.5 months of inventory
Hays County
- Home sales decreased 11.9%
- Median home price increased 4.9%
- New listings increased 38.4%
- Active listings increased 398.7%
- Pending sales dropped 10.1%
- Monthly housing inventory increased to 3.3 months of inventory
Bastrop County
- Home sales decreased by 35.7%
- Median home price decreased by 7.9%
- New listings increased by 5.2%
- Active listings increased by 319.3%
- Pending sales dropped by 20.8%
- Monthly housing inventory increased to 4.1 months of inventory
Caldwell County
- Home sales decreased by 4.6%
- Median home price increased by 0.6%
- New listings increased by 31.0%
- Active listings increased by 315.6%
- Pending sales dropped by 7.7%
- Monthly housing inventory increased to 3.1 months of inventory
You can read the full report about the January 2023 Central Texas Housing Market Report by visiting the Austin Board of RELATORS' website.
Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.