Austin Market Update - October 2023

[David Ivy]

The October 2023 market report from the Austin Board of REALTORS® (ABoR) shows that the median home price remained stable in the city at $540,000, which is only down 1% from this same time last year. The greater metro area, however, showed a 7% decrease to a median home price of $435,000. Inventory is up from last year. In fact, it’s the highest it has been in 8+ years in the metro. However, it has remained relatively stable on a monthly basis for some time now. Both closed and pending sales were up compared to October 2022. So, the Austin metro market continues to show resilience and signs of stability.

Here are the full stats for Austin and the greater metro:

What if I’m a buyer? In a number of ways, this is the best market for buyers in Austin in many years. There are more listings to choose from now than any other time in over eight years. Prices have fallen. Multiple offers are now the exception, not the norm. Buyers have significantly more negotiating power. They can take their time with their search and be more selective about a property’s condition. So, if interest rates are your primary reason for staying on the sideline, I recommend working with an experienced agent who can identify the best opportunities and work to negotiate a reduced interest rate from a seller. You can also take a look at new construction, where builders are often offering hefty rate reductions and other substantial incentives.

What if I’m a seller? First, you can be confident that there is still strong demand for Austin housing. Closed and pending sales in the metro area last month were up from the previous year. However, it’s important to price for today’s market conditions, not those of the previous few years. Days on market are up and the majority of listings are reducing prices at least once during the process. However, properties priced appropriately can still go under contract in a matter of days, sometimes with multiple offers. Now is not the time to “test the market” with an ambitious price to “see what happens.” Since there are many more listings competing on the market than in previous years, it’s crucial to prepare a property to stand out among the rest and address potential buyer objections before hitting the market.