In what is sure to come as a relief for those seeking to purchase a home in the Austin area, data indicates that the market in the area is finally cooling off from its record levels and growth in recent months.
While the rise in demand and lowered supply has undoubtedly helped area homeowners increase their property values, it has made buying a home a challenge – and an expensive one.
New data from the Austin Board of Realtors (ABoR) August report shows the Austin-area housing market is cooling off slightly. According to the report, home sales decreased 4.6% compared to August 2020. Though the market is still hot and the ABoR report states that Austin set a record for the month of August with an average sales price of $470,000, prices are no longer increasing at a significant rate month-to-month.
“The region’s housing market is calming compared to the hectic pace experienced at the beginning of the year,” Susan Horton, 2021 ABoR president, stated. “While it wouldn’t be appropriate to say market conditions are normalizing – inventory is still at an all-time low and homes are still selling as soon as they hit the market – August’s housing activity is closer to what we would typically experience in the fall.”
Though the market has cooled down a bit, many believe that long term, the market will continue its meteoric rise. The report shows that as home sales in the Austin-Round Rock area declined 4.6% to 3,849, the average sales price increased 34.7% year-over-year to $470,000. In July of this year, 4,041 homes sold and the median sales price rose 37.1% year-over-year to $480,000, which was a record for that month.
At the same time, inventory is looking a little better. The report shows there is now a month of inventory available, the highest level of inventory across the area since October of last year, giving hope to those looking to purchase a home in the area.
