Austin, TX housing market: Everything you need to know
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The capital of the Lone Star state is characterized by vibrant live music offerings and a healthy, outdoorsy lifestyle with ample opportunities for hiking, biking and boating. The city is also home to the flagship campus for the University of Texas and a diverse arts scene.
It’s no wonder the city’s population has been steadily growing. Austin’s population increased 33 percent between 2010 and 2020, and its booming job market makes it one the top places for migrating talent. While Austin is certainly a more expensive place to live now than it used to be, its cost of living is still more affordable than many other major metropolitan locations in the country. And that includes local home prices.
Austin, TX housing market overview
The Austin housing market has actually cooled considerably since the height of the pandemic, when there was a dire shortage of supply and regular bidding wars. Some listings in the city still receive multiple offers, but overall, homes here are spending far more time on the market than they did this time last year, and home prices have dropped considerably since their 2022 peak.
Austin housing trends and stats
- The median sale price for a home in Austin as of January 2023 was $530,000, according to Redfin data.
- That’s a 5.4 percent decline year-over-year, but it’s still well above the national median price of $359,000.
- Homes in the city have about a 96 percent sale-to-list ratio.
- Austin homes are also spending longer on the market than one year ago — a lot longer. Per Redfin, the median number of days on market for January was 76, literally double the 38 days the city saw in January of last year.
- Closing costs for the Texas housing market typically come to about 1.5 percent of a home’s purchase price, according to data from ClosingCorp.
Should you buy or sell in the Austin housing market?
If you’re a home seller
Up until recently, Austin was a great place to sell a home. But the market is shifting. Sellers will still probably do well, but home prices are trending downward and listings are not moving off the market as quickly. As a result, some sellers have had to drop their prices in order to close a deal — 22 percent more sellers than last year, per Redfin.
If you’re considering listing your Austin home, work with a local real estate agent who knows the area well and can help you price competitively based on market research. The longer a home sits on the market, the harder it can be to sell, so setting the right list price is essential. An agent can help you best determine how much your home is worth.
If you’re a homebuyer
Austin is a buyer’s market at the moment — the fourth best buyer’s market in the country, in fact, according to a Buyer-Seller Market Index from Knock. This means buyers here currently have much more negotiating power than they did when the COVID pandemic upended the market and triggered soaring prices and frequent bidding wars.
Even amid a buyer’s market however, it’s still important to develop a specific budget. Use Bankrate’s affordability calculator to help determine how much house you can comfortably afford. And before you begin shopping, take the time to get preapproved for a mortgage, which will help guide your search process.
Austin housing market predictions
The Austin housing market’s slowdown is expected to continue, along with a predicted market downturn across much of the country. In fact, Goldman Sachs predicts Austin is one of four markets in the country, along with San Diego, Phoenix and San Jose, California, that will see home values drop during 2023 by as much as 25 percent. The investment bank compared the anticipated housing market decline in those four cities to the 2008 market crash. But unlike in 2008, experts say a housing market crash is unlikely.
Find an Austin real estate agent
Navigating Austin’s real estate market at the moment is a complex challenge, particularly as interest rates continue to rise and fears of a recession loom. Whether you are a buyer or a seller, now is the time to work with an experienced real estate professional who knows the market well and can help you achieve the best outcome for your goals and financial picture.
The median price for a home in Austin as of January 2023 is $530,000, according to Redfin. That’s considerably higher than the national median price of $359,000 — but it’s more than 5 percent lower than it was in January of 2022.
Yes, housing prices in Austin have been consistently declining. Median home prices are 5.4 percent lower in January 2023 than they were in January 2022, per Redfin, and the current median of $530,000 is more than $100K less than it was in May 2022. In addition, 33.8 percent of homes sold in January experienced a price drop.
Yes. Austin’s housing market has shifted and is currently considered by many to be a buyer’s market. Home prices are lower now than they have been at almost any time since the height of the pandemic.