Austin Market Update - June 2023

[David Ivy]

The June 2023 real estate market numbers are out from the Austin Board of REALTORS® (ABoR). The median home (of any type) in Austin sold for $588,193, which is down just 3% from June 2022. The greater Austin metro had a higher yearly decline of 9% to a median price of $483,000. Inventory is now approaching 4 months, but it is overall in line with levels seen throughout this year.

Clare Losey, housing economist for ABoR, comments about how constrained inventory has propped up Austin home prices so far this year in the face of interest rates in the 6-7%+ range:

“Despite a slight uptick in mortgage rates in June, the median sales price rose a modest 2.7% from May. Overall, the moderation in home prices throughout the region over the past year has eased the affordability constraint posed by higher rates, but more work needs to be done across the region and into the future to fully address this challenge. The Central Texas region simply needs more inventory—particularly at price points affordable to first-time buyers—as home prices remain elevated relative to incomes across the region.”

Here are additional stats for Austin and the greater metro:

Below is a chart of the median single-family home price in Austin since Jan. 2020. Prices peaked in May 2022. By May 2023, single-family prices had fallen nearly 15%. However, in the face of higher interest rates, the price of a single-family home in Austin is up nearly 9% from the start of the year. It's still below where we were in 2022. Home prices in Austin now look more similar to 2021 and are still well above pre-pandemic levels.

To close, I highly recommend checking out two recent, data-rich articles about the Austin market from the Texas Real Estate Research Center:

• Austin's Power: Why the Capital City's Home Prices Surged
• What's Driving Austin Home Price Appreciation?