The 2023 real estate market in Central Texas highlights the pressing need for improved housing affordability. Home sales contributed over $17 billion to the local economy. The median home price in the Austin-Round Rock MSA decreased by 10.2% to $450,000, signaling a move towards a more sustainable pace in the housing market. Despite a slight 3.0% decline in sales, the market is showing resilience in the face of broader economic factors.
Kent Redding, the 2024 ABoR president, emphasized the importance of engaging expert REALTORS® to navigate the current market conditions. He noted that the increased housing inventory presents opportunities for both buyers and sellers. However, Clare Losey, Ph.D., a housing economist for ABoR, pointed out that higher mortgage rates have been a significant constraint for potential homebuyers, especially first-time buyers.
Looking ahead to 2024, Losey anticipates relatively consistent trends compared to 2023, with a 5.0% increase or decrease in home prices and sales. While the market continues to stabilize, there is still strong housing demand and an increase in the inventory of homes for sale.
Redding stressed the importance of addressing the housing accessibility challenges posed by Central Texas' rapidly growing population. He emphasized the need for community, city, and elected officials to prioritize tackling these challenges to make homeownership more attainable for more Austinites. ABoR is committed to advocating for these changes and participating in important policy discussions to have a positive impact on the housing supply.