Thursday, March 09, 2023 : The Austin, Texas real estate market has continued to undergo significant changes over the past year. The total number of active listings in the Austin-Area MLS has increased from 4,836 to 9,555, indicating a 4.43x increase, with a Months of Inventory of 4.70 months. This represents a significant shift in the market, giving buyers more options to choose from. In the City of Austin specifically, the increase in inventory is 4.7x.
Despite an average list price increase of 9.75% year over year, the average sold price this month is currently $557,807, a decrease of 11.24% year over year. The median sold price is $439,000, a difference of 13.07% year over year. The median sold price in the City of Austin has decreased by 3.5% year over year, from $647,713 to $625,000. These declines in prices can likely be attributed to the increase in inventory, as buyers now have more options to choose from and can be more selective in their purchasing decisions.
Looking at the peak of the market, the Austin MLS saw its highest average sold price in May 2022, at $681,952. Since then, the market has dropped by $96,405 or 14.1%. Similarly, the median sold price peaked in May 2022 at $550,000 and has since dropped by $82,437 or 14.99%.
For buyers, the increase in inventory means that there are more options available, which could lead to more competitive pricing and better negotiation opportunities. It also means that buyers may have more time to make purchasing decisions, as there is less pressure to act quickly due to a shortage of available properties.
For sellers, it's important to work with a skilled real estate agent who can help navigate the changing market and set realistic expectations for pricing and timing. It may also be necessary to make updates or improvements to the property to stand out in a crowded market and attract potential buyers.
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