E20: Deep Dive into the Austin Real Estate Market in 2023

In this episode of The Real Austin Podcast, we closely examine the Austin real estate market in 2023, taking a look at market trends, discussing the implications of changing home values, and sharing predictions for what the year 2024 might hold. Despite the rumors of a market crash, 2023 brought a decrease in overall home prices with a 10% decrease in median sales prices from the previous year.

Other interesting trends we observed include a 9% decrease in closed sales, a rise in average days on market to 70 days, and a 7% reduction in new listings. These changes were largely influenced by interest rates that peaked at around 8% in October 2023, high enough to deter potential home sellers from trading in their low-rate mortgages for higher ones. This resulted in fewer new listings and increased active listings by 49%, causing many homes to remain on the market for an extended period. However, despite all these changes, pending sales only decreased by a marginal 3%.

Our analysis also delves into the challenges faced by first-time homebuyers in 2023, with rising mortgage rates making it difficult for new entrants to the housing market, especially those with the median income in the Austin area. As a result, many prospective homebuyers have chosen to continue renting, contributing to the increase in active listings. Despite these obstacles, the drop in median sales prices in December 2023 was only 1%, indicating that buyers were still active in the market.

We also take a look at the trends in different areas of the Austin Metropolitan Statistical Area, noting the varying responses in different counties. Regardless of the changes in the market, one thing remains consistent - the need for education. Both prospective buyers and sellers should seek knowledge and guidance from trustworthy resources to navigate the fluctuating real estate market. This episode serves as an insightful resource for anyone looking to understand the Austin real estate market in 2023 and beyond.