As mortgage rates climbed, home sales, median prices tumbled in Austin metro in 2023
The Central Texas housing market took a breather last year.
Across the five-county region, sales and median prices were down in every county except one: Caldwell, where Lockhart is the county seat and the 516 sales last year were up 0.8% compared with calendar year 2022.
That's according to the latest numbers from the Austin Board of Realtors.
In the Austin-Round Rock metro that extends from Georgetown to San Marcos, sales fell 9.8% as 30,438 homes changed hands. Half of those homes sold more for more than $450,000 and half sold for less, for a 10.2% drop in the median closing price.
“In 2023 the Austin-Round Rock MSA housing market continued its move towards a more sustainable pace,” said Kent Redding, president of the Austin Board of Realtors. “Housing inventory reached the highest level it's been in more than eight years, and while there was a drop in closed sales and median close price, these were both symptomatic of higher mortgage rates."
More: Austin housing market crystal ball: See what some experts predict for 2024
On an annual basis, home sales also declined in the Austin-Round Rock region in 2022. There were 33,547 closed sales that year, a drop of 18.3%, the board said.
While 2022 saw a steep 24.2% decline in pending sales (those in the pipeline to close), 2023 saw only a slight 3% decline, a sign that the Central Texas housing market "continues to find its footing despite macroeconomic factors impacting the broader housing market and economy," board officials said.
Within Austin's city limits, there were 8,554 sales, a drop of 14.9% compared to 2022. The median sales price was $540,000, down 8.2% from 2022.
Clare Losey, housing economist for the Austin Board of Realtors, said higher mortgage interest rates were the biggest headwind for potential homebuyers last year, underscoring the lack of housing accessibility, specifically for first-time homebuyers.
“The single biggest factor constraining the Central Texas housing market in 2023 was the gradual rise in mortgage rates, which peaked in late October," Losey said. "This caused sellers, and buyers essentially, to continually readjust to the current rate environment. While we have seen some leveling off in home prices, the Central Texas region still lacks a sufficient inventory of affordable homes for sale, especially those homes priced below $300,000, which is keeping many would-be first-time homebuyers on the sidelines.”
This year, Losey forecasts that home prices and sales "will likely remain essentially flat, to the tune of a 5% increase or decrease year over year in 2024."
"While the market continues to find its footing, it’s noteworthy that total sales dollar volume is up 30.5%, there are 21.9% more active listings and 38.4% more months of inventory today than there were five years ago. Housing demand is still strong and the uptick in the inventory of homes for sale in 2023 has provided more options for repeat buyers.”
Here are the numbers for each county:
Travis
Sales: 13,664, down 13.3% from 2022.
Median price: $523,800, down 8.9%.
Williamson
Sales: 10,414, down 9.6% from 2022.
Median price: $430,000, down 10%
Hays
Sales: 4,423, down 0.1%
Median price: $397,330, down 9.7%
Bastrop
Sales: 1,421, down 6.1%
Median price: $350,210, down 11.3%
Caldwell
Sales: 516, up 0.8%
Median price: $299,990, down 10.5%
This article originally appeared on Austin American-Statesman: Home sales, median prices declined in Austin housing market in 2023
