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Austin Texas Metro Area Housing Inventory is Looking Great Right Now!

By
Real Estate Agent with Keller Williams Realty Lake Travis TREC# 755139

While the U.S. is currently experiencing very low housing inventory with many homeowners getting at or over asking price for their homes...

The Austin-Round Rock, Texas Metropolitan Statistical Area, MSA is experiencing something very different!

The Austin-Round Rock, TX MSA's low point in inventory during the pandemic was around .3 of a month... Last month in May, we reached 3.4 months of inventory.  And in some areas of the Austin-Round Rock, TX MSA, for example zip code 78734, Lakeway, TX area, inventory levels reached 5 months for Resale Single Family Homes and 6.9 months for Single Family New Construction!

Now that inventory has "normalized," there are many properties for buyers to consider as options.  The average number of Days on Market dropped to 65 in May from the recent peak at 84 days in February...

Ex:  15103 Nightingale Lane, Austin, TX 78734, New Build, Active 1 Month
                    https://pages.kw.com/cary-nemeroff/761444/Nightingale.html     Appx. $400/sq. ft                

It's taking weeks and even months for the majority of homes to go to contract!  

Spring has had a great effect on the housing market here in Austin-Round Rock, TX MSA for both buyers and sellers...

In May, there were 3411 Closed Sales compared to only 1634 Closed Sales in January.  This is a 109% increase in Closed Sales since January.  May had 800 more Closed Sales than April in the Austin-Round Rock, TX MSA amounting to a 31% increase. 

Considering that inventory has grown, the Closed Sales data highlights that buyers are out buying and homeowners are able to sell their homes (however not necessarily at or above asking price).

In this regard, Median Sales Prices in the Austin-Round Rock, TX MSA have somewhat stabilized again.  Since the April and May 2022 all-time high, the Median Sales Price for housing had dropped more than $100,000 from the peak by February 2023 however from April to May 2023 we saw an insignificant increase (of the Median Sales Price) of less than .2% indicating to me that prices may continue to fall after "spring fever" fizzles out.

Here is the latest Austin-Round Rock MSA Housing Data published by the Austin Board of Realtors, ABOR:

In zip code 78734, Lakeway, TX area, the Median Sales Price for housing decreased 4.2% from January to May of this year.  

Interest Rate increases will very likely continue to affect Median Sales Prices in the Austin-Round Rock, Texas MSA because housing inventory continues to accumulate (dissimilar to what's happening in other areas of the U.S.).  I expect the price of housing to continue to fall because of these 2 factors (and a general concern about America's economy).

Here's some good news...

If we compare May's Home Sale Dollar Volume that totaled $2.06 Billion to April,  we find a $520 Million increase in May that equals 34%.  Considering the 31% increase in Closed Sales and 34% increase in Dollar Volume, we could deduce that higher priced homes were selling in May (compared to April).  

In spite of interest rates hovering around 7%, those who need to buy are still out there buying.  Perhaps buyers are considering that interest rates are still at historically low levels.  Also, if interest rates decrease in the future, one might just refinance.  

If you were a buyer patiently riding out the housing boom in the Austin-Round Rock, TX MSA during the pandemic, now's a great time to "pull the trigger" and consider buying again in the Austin-Round Rock, TX MSA.  The likelihood of competing with multiple offers, needing to make rash decisions, waiving inspections & contingencies, etc., etc. are over for now in this area! 

Looking to buy or sell a home or investment property in the Austin Metropolitan Area including Lakeway, the suburbs or countryside?!  I'm the Realtor for you to contact who KNOWS the market!  

Cary Nemeroff, Austin Lakeway ASL Realtor
(512) 409-4047
austinlakewayrealtor@gmail.com
www.austinlakewayrealtor.com
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George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Cary Nemeroff I am looking forward to our inventory picking up, because right now it is super low.

Jun 22, 2023 05:14 PM
Cary Nemeroff

In time, I'm sure that it will come.  We'd struggled without good inventory for years... much better now!  Thanks!

Jun 23, 2023 06:36 AM