Austin Housing Market

Shifting Dynamics: Austin-Area MLS Inventory Increases, Prices Decrease, and Competition Heats Up

AUSTIN-TX, May 04 2023 : The Austin-Area MLS has experienced a significant increase in inventory over the past year, with a total of 10,221 active listings, up from 6,762 last year. This growth is particularly notable in the City of Austin, where inventory has increased 2.5 times. The Months of Inventory (MOI), which measures the current level of consumption based on sold properties, has risen to 3.44 months, indicating a shift in the supply and demand balance and offering more options to potential homebuyers.

In terms of pricing, the average list price for active homes in the Austin-Area MLS is $705,111, representing a 3.83% decrease YoY, while the median sold price is $450,000, marking a 16.36% decrease YoY. However, the average sold price to list price ratio is 97.25%, indicating properties are generally selling close to their list prices.

The real estate market in Central Texas has seen some price increases month-over-month, with 70% of cities experiencing an increase, while 30% have seen a decrease. However, 90% of cities have witnessed a year-over-year price decrease, with only 10% experiencing a price increase. A similar trend is observed in zip codes, where 63% of zip codes have seen a month-over-month price increase, but only 11% have experienced a price increase YoY.

Despite the decrease in average and median sold prices, the average sold price to list price ratio remains close to 97%, indicating properties are generally selling near their list prices. A higher percentage of properties are selling over the list price compared to earlier this year, indicating increased competition among buyers in some areas. Buyers can benefit from the increased inventory and potentially lower prices, while sellers should adjust their expectations and pricing strategies to remain competitive in the market.