The Current Real Estate Market in Austin: What You Need to Know
If you are thinking of buying or selling a home in Austin, you might be wondering how the local housing market is doing. Austin is one of the fastest-growing and most desirable cities in the country, thanks to its vibrant tech scene, cultural diversity, and natural beauty. But how does that translate into the real estate market? Here are some of the latest prices, trends, and forecasts for the Austin housing market in 2023.
According to Redfin, the median sale price of a home in Austin was $535,000 in March 2023, down 16.4% from a year ago. The median sale price per square foot was $338, down 14.9% from last year. However, these declines are mainly due to the comparison with the record-high prices that were reached in March 2022, when the market was extremely hot and competitive. Compared to two years ago, the median sale price is still up 31.8%, and the median sale price per square foot is up 29.6%.
The Austin housing market is somewhat competitive, with homes receiving an average of three offers and selling in around 52 days. The average sale-to-list price ratio was 97.4%, meaning that homes sold for about 2% below the asking price on average. Some homes received multiple offers and sold for around the list price or higher.
One of the main drivers of the Austin housing market is the strong demand from both local and out-of-state buyers. Austin has been attracting people from all over the country, especially from more expensive and crowded cities like San Francisco, Los Angeles, Chicago, and New York. According to Redfin, 26% of Austin homebuyers searched to move out of Austin in February-April 2023, while 74% looked to stay within the metropolitan area. Among those who searched to move into Austin from outside metros, San Francisco was the top origin city, followed by Los Angeles and Chicago.
Another factor that influences the Austin housing market is the robust job growth and economic recovery. Austin has been ranked as one of the best places to live and work in the U.S., with a diverse and innovative tech industry that includes companies like Dell, Apple, Google, Facebook, Tesla, and Oracle. The unemployment rate in Austin was 3.8% in March 2023, lower than the national average of 6%. The job market is expected to continue growing as more businesses expand or relocate to Austin.
The outlook for the Austin housing market is positive, as demand remains high and supply improves. According to the Austin Board of Realtors (ABoR), new listings increased by 6.6% year-over-year in March 2023, while active listings soared by 377.7%. This pushed the housing inventory up from 0.5 months to 3 months of supply across the five-county area. ABoR president Ashley Jackson said that this spring brought a sweet spot for both buyers and sellers, as there are more choices and opportunities than in over a decade.
ABoR’s housing economist Dr. Clare Losey said that Austin’s housing market is still demand-driven, contributing over $1.5 billion to the region’s economy last month even as the pace of home sales and price growth adjusts from the extreme anomaly of the last two years. She also noted that mortgage rates have stabilized and housing activity has normalized.
If you are interested in buying or selling a home in Austin, you should work with a professional realtor who can help you navigate this dynamic and competitive market. Contact us today to get started!