Navigating the Austin Real Estate Market

AUSTIN-TX : Thursday, April 27, 2023 : Over the past year, the Austin housing market has undergone a remarkable transformation, marked by substantial shifts in inventory levels and home prices. For buyers and sellers alike, staying up to date on these market trends and statistics is essential to making well-informed decisions. In this article, we will delve into the most recent data surrounding the Austin real estate market, shedding light on emerging trends while offering valuable insights into housing affordability and promising investment opportunities.

Inventory Growth in the Austin-Area MLS

• The number of active listings in the entire Austin-Area MLS has more than doubled in the past year. In 2022, there were 4,853 active listings, while in 2023, there are 10,260 active listings. This remarkable growth of 111.4% has led to an increase in months of inventory, from 1.43 months in 2022 to 4.27 months in 2023, a whopping 198.5% increase.
• The City of Austin experienced a similar trend, with the number of active listings jumping by 134.8% from 1,280 in 2022 to 3,005 in 2023. As a result, the months of inventory in the City of Austin increased from 1.11 to 4.15, a 273.6% increase.

Analyzing Home Prices in the Austin Market

• In the Austin-Area MLS, the average active home price increased by 3.32% year over year, reaching $726,067. However, the average sold price dropped by 11.18% to $585,748, while the median sold price declined by 15.83% to $450,302.
• In the City of Austin, the average active home price rose by 5.25% year over year, reaching $970,146. The average sold price decreased by 5.13% to $790,292, and the median sold price dipped by 9.2% to $599,000.

Central Texas Cities and Zip Codes

• When examining the 30 cities in Central Texas, 57% experienced a month-over-month price increase, while 40% saw a price decrease. However, only 10% of these cities had a year-over-year price increase, with the remaining 90% experiencing a decline in prices.
• Out of the 75 zip codes in Central Texas, 60% witnessed a month-over-month price increase, while 39% experienced a decrease. In terms of year-over-year changes, only 12% of the zip codes saw a price increase, with the other 88% facing a decline in prices.

Property Sale Trends

• In the Austin housing market, 60.55% of properties sold under the list price in the current month, a decrease from the previous month's 66.57%. Properties sold at the list price accounted for 20.08%, a slight increase from the previous month's 18.95%. Finally, 19.37% of properties sold over the list price, up from 14.48% the previous month.

Mortgage Payment Insights

Considering the current median sold price of $470,500, a 20% down payment, and a 30-year mortgage rate of 6.34%, the monthly mortgage payment (PITI; Principal, Interest, Taxes, Insurance) can be calculated as follows, using a tax rate of 2.25% and an insurance rate of 0.68%:

• Principal and Interest: $2,300.57
• Estimated Property Taxes ($470,500 x 0.0225): $1,058.63
• Estimated Homeowner's Insurance ($470,500 x 0.0068): $129.86
• Total Monthly Mortgage Payment (PITI): $3,489.06

Comparing this to April 2022, when the total monthly mortgage payment was $3,700, housing affordability has improved by 5.71%, making it a more opportune time for potential homebuyers.

Staying informed on the ever-changing Austin real estate market is essential for making well-informed decisions, whether you are a buyer, seller, or investor. Our comprehensive analysis of the latest trends and data will help you navigate the market with confidence. We encourage you to reach out to our expert team for personalized advice and assistance tailored to your unique needs. Remember to visit us weekly for the most up-to-date information and insights on the Austin housing market, empowering you to make the best choices in your real estate journey.