AUSTIN, Texas — Home prices are dropping in Central Texas, and the housing market overall is cooling off. That's according to new reports from both the Austin Board of Realtors (ABoR) and Zillow.
According to ABoR's October report, the median home price in the Austin-Round Rock area is $435,000. That's a 7.5% drop from a year ago.
The report also shows residential home sales are up about 4%, which experts say shows buyers are still willing to enter the housing market, despite higher interest rates.
In October, homes spent an average of 68 days on the market, up 21 days from October 2022. Housing inventory increased to 3.2 months of inventory, new listings dipped 0.8% to 3,202 listings, active listings increased 5.2% year-over-year to 9,942 listings and pending listings rose 12.0% year-over-year to 2,257 listings.
A new report from Zillow tells a similar story. Zillow says the demand for homes is cooling off, meaning prices are falling – but it said a major reason for the drop in demand is historically high mortgage rates.
Zillow said in the Austin metro area, newly pending sales fell 1.5% month-over-month. Typical home values are also down 1.5% from September and down 9.2% compared to last year.
Zillow also reported that more than 30% of sellers gave their listing a price cut last month.
Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.