Austin Real Estate Market Mid-Year Review 2023: Trends and Insights

Navigating the Dynamic Austin Real Estate Market: A Mid-Year Review

As we approach the midpoint of 2023, it's an opportune time to take a closer look at the Austin real estate market. Whether you're considering buying, selling, or simply keeping an eye on the market, understanding the current trends can provide valuable insights.

Over the past year, we've seen a significant increase in active listings in the Austin area. This time last year, the total number of active listings was 9,889, but today, that number has risen to 11,626. This increase in inventory suggests a shift towards a more balanced market, with the Months of Inventory currently standing at 3.94 months, a 1.5 times increase from last year's 2.61 months. In the City of Austin, the inventory increase is even more pronounced at 1.6 times.

However, this increase in inventory hasn't dampened price growth. The average list price for active homes in the Austin area is currently $690,455, marking a 5.30% increase year over year. Despite this, the average sold price this month is $599,951, a decrease of 7.07% year over year, with the median sold price at $475,000, down 9.52% from last year.

In the City of Austin, the median sold price last year was $633,283, and this year it stands at $615,000, a slight decrease of 2.9% year over year. The average sold price to list price ratio is holding steady at 98.04%, indicating that homes are selling close to their asking prices.

When we expand our view to the 30 cities in Central Texas, we see a mixed picture. 63% of cities have seen a month-over-month price increase, while 33% have seen a decrease. Year over year, 20% of cities have seen a price increase, while a significant 77% have seen a decrease.

In terms of properties sold at, over, and under the list price this month, 59.86% sold under the list price, 20.22% sold at list price, and 19.92% sold over the list price. These figures show a slight decrease in properties selling under the list price compared to last month.

In conclusion, the Austin real estate market is dynamic and ever-changing. While we've seen an increase in inventory and a mixed picture in terms of pricing, the market remains robust. Whether you're looking to buy or sell, understanding these trends can help you make informed decisions in your real estate journey.