Austin Real Estate Market in 2023: A Seller's Market That's Starting to Slow Down?

The Austin real estate market has been on a tear in recent years, with home prices skyrocketing and inventory levels plummeting. But as of 2023, the market is starting to show signs of cooling off.

There are a few factors contributing to this slowdown. First, interest rates have been rising, making it more expensive to borrow money to buy a home. Second, the supply of homes on the market has increased slightly, giving buyers more options. And third, some buyers are becoming more hesitant to make a purchase in a market that they see as being overheated.

Despite these factors, the Austin real estate market is still considered a seller's market. This means that there are more buyers than sellers, and homes are typically selling for above list price. However, the market is starting to become more balanced, and we can expect to see even more price decreases and inventory growth in the coming months.

Here is a more detailed look at the current state of the Austin real estate market:

• Home prices: The median home price in Austin is currently $575,894, which is down 0.4% from May of last year. However, this is still significantly higher than the national median home price of $428,700.
• Inventory levels: The number of homes on the market in Austin has increased by 173.5% year-over-year. This is still well below pre-pandemic levels, but it is a sign that the market is starting to become more balanced.
• Sales activity: Home sales in Austin decreased by 14.5% year-over-year in the first half of 2023. This is the first time that home sales have decreased in Austin since 2019.

So, what does all of this mean for buyers and sellers in the Austin real estate market?

• Buyers: Buyers are still facing a competitive market, but they are starting to have more options. They should be prepared to act quickly when they find a home that they like, and they should be willing to negotiate on price.
• Sellers: Sellers should still be able to sell their homes for a profit, but they may need to be more realistic about their expectations. They should also be prepared to make concessions to buyers, such as waiving appraisal or inspection contingencies.

Overall, the Austin real estate market is still a seller's market, but it is starting to show signs of cooling off. Buyers and sellers should be aware of these trends and adjust their strategies accordingly.

Here are some tips for buyers and sellers in the Austin real estate market in 2023:

• Buyers:
• Be prepared to act quickly when you find a home that you like.
• Be willing to negotiate on price.
• Consider waiving appraisal or inspection contingencies.
• Get pre-approved for a mortgage before you start looking at homes

• Sellers:
• Be realistic about your expectations.
• Be prepared to make concessions to buyers.
• Price your home competitively.
• Stage your home to make it look its best.
• Hire a good real estate agent.

The Austin real estate market is constantly changing, so it is important to stay up-to-date on the latest trends. By following these tips, you can increase your chances of success in the Austin real estate market in 2023.