July Market Statistics

July 2023 stats out! With a rise in pending sales and closed sales remaining consistent, we are seeing that buyers are adjusting to the higher interest rates. We are seeing however a year-over-year decline in median sales prices, as buyers cannot afford the same price points with these higher rates. Looking ahead, the odds of Central Texas experiencing a recession continue to decline. Austin has a strong job market, but we have felt the tech hiring freeze more than most markets. When we see tech companies start hiring again, we will know that the real estate market demand will follow shortly after!

According to the Austin Board of REALTORS® July 2023 Central Texas Housing Market Report, closed listings increased 0.6% year-over-year to 2,815 closed sales across the Austin- Round Rock MSA. When considering July 2022 is when the market initially began to stabilize, and when combined with pending sales rising 14.5% to 2,892 pending sales, the housing market is poised for a strong finish to 2023.  Pending Units are a reliable leading indicator of sold units and relatively reliable in predicting price trajectory because they’re a great indicator of real time demand. The 2023 pending unit (demand) curve is very similar to the normal market of 2019, which followed Austin’s normal seasonality. This is another strong indicator that we’ll see the market soften more into the school year and holidays after which it will return in early spring of 2024.

“July’s housing market activity underscores the resiliency within the MSA’s market,” Ashley Jackson, 2023 ABoR president, said. “We now have a direct year-over-year comparison of when our market began stabilizing, and the big fluctuations we’ve previously seen have started to even out. Potential buyers who have been on the fence about purchasing a home should know interest rates are settling, and now is the time to act. Working with an experienced REALTOR® is the best thing you can do because they can help you make quick and confident decisions.”

In July across the Austin-Round Rock MSA, sales dollar volume dropped 7.2% to $1,668,708,916, while homes spent an average of 59 days on the market, up 37 days from July 2022. The median price also dropped 10.3% to $462,000 and new listings fell 23.7% to 3,884 listings. Active listings increased 12.8% to 9,663 active listings while housing inventory increased 1.0 months to 3.7 months of inventory.

“In 2023, the median family income in the Austin-Round Rock MSA is $122,300. This means buyers generally can afford a home priced between $300,000 to $400,000, however, less than 40% of homes sold in the Austin-Round Rock MSA in July of this year alone fall into this price range. ABoR’s July housing market data stresses not only the strong, ongoing housing demand in our region, but also the critical need for more housing stock at all price points.”$298,048 – Median price for residential homes, 20.2% less than July 2022.