Are you planning on upsizing, downsizing, or relocating to Austin? During the past few years, the Austin housing market was hotter than hot, with prices rising and homes flying off the lot. In mid-2022, it appeared that the housing market was finally starting to slow down as it returned to its pre-pandemic levels
. Find out how the Austin real estate market is doing in 2023 and what it means for you as a prospective buyer or seller.
1. The Austin housing market
Currently, Austin is experiencing a strong buyer’s market that is characterized by lower prices and homes taking longer to sell. Throughout much of 2022, median home prices in Austin continued to fall, finally reaching $525,250 by the end of the year
. Even though the Austin housing market has experienced an approximately 5.4% decrease in home prices
year-to-date, prices are still well above the national average.
Previously buyers have had to make cash offers well above the asking price, and some were even priced out of the market. Many home buyers are finding that they have increased negotiation power today. Many homes were taking as long as 73 days to sell
by the end of 2022, which is an increase from the previous year when homes were selling faster. The Austin real estate market is perfectly positioned for buyers to purchase their dream homes at a great deal.
2. The market stabilizes
Compared to the years of the pandemic when the Austin housing market was a frenzied seller’s one, it has since slowed down. One might wonder why the market has slowed to favor buyers. 2022 was the year the market in Austin started to stabilize. Home prices were declining quickly, and there were fewer bidding wars as many homes sold for less than the asking price. Sometime in mid-2022, the federal interest rate increased, and inflation started rising concurrently. Both of these circumstances contributed to the housing market slowing down.
Throughout the rest of 2023, the Austin real estate market will likely continue this trend of decreasing prices and rising interest rates. Despite the housing inventory possibly dropping sometime in 2023 with fewer new construction homes being built, there is greater demand than ever for buyers to obtain a piece of Austin real estate.
3. Fast-growing economy and thriving job market
During the past decade, there have been waves of people relocating to Austin. As recently as the latter part of 2022, Austin was named the 2nd fastest-growing city in the country
with its thriving economy. The reason why the economy has been growing so fast is due to the flourishing job market. Austin has recently gotten a reputation as the next major tech hub that even rivals Silicon Valley
. In Austin, many tech companies such as Google, Facebook, Cisco, Visa, Amazon, and Apple make their home. These tech opportunities have helped contribute to the Austin job market growing by nearly 4% over the past year
. Furthermore, the job market in Austin is expected to grow a further 47% over the next decade
. With a fast-growing economy, Austin will continue to be in great demand as buyers compete for the limited number of homes available.
4. Appreciation rates keep rising
Alongside the increased demand for Austin homes, appreciation rates have kept rising. Over the past ten years, Austin homes have appreciated by nearly 200%
, placing the Austin market in the top 10% nationally. In 2022, Austin real estate had an annual appreciation rate of 30%
. Homes will likely keep appreciating if the Austin real estate market continues this trend. Investing in a rental property in Austin could build substantial equity more quickly than other real estate markets in other parts of the country.
5. What does this mean for buyers?
As a strong buyer’s market, it is an excellent time for buyers and investors to purchase Austin real estate. Since home prices are decreasing, buyers will likely get a better deal on their luxury Austin homes than they would have just a few years ago. In addition, with homes staying on the market longer, buyers can take their time searching for Austin homes for sale.
However, with inventory tightening, the market might get slightly more competitive as buyers compete for fewer homes. Work with a premier Austin real estate team with experience navigating a buyer’s market, like Umlauf Properties Group. They can offer guidance on locating the right Austin neighborhood for you and your family’s lifestyle. In addition, they can help you negotiate on the home so that you get as many of your must-haves as possible.
6. What does this mean for sellers?
Sellers might have a more difficult time navigating a buyer’s market. With home prices decreasing, it might be more challenging for sellers to sell their properties at maximum value. However, sellers can navigate a challenging market by working with an experienced Austin real estate agent. An Austin real estate agent can guide sellers with expert staging and marketing tactics to ensure their home stands out. Sellers need to highlight the home's best features, whether that is the stunning Austin cityscape, the highly sought-after amenities, or the excellent schools. Furthermore, sellers might need to offer more contingencies to entice buyers to consider their properties. Consult an experienced Austin real estate agent who can help sell your home for the best value possible.
7. An experienced Austin real estate team can help
Whether buying or selling an Austin property, you need to work with an experienced team of experts to guide you from initial consultation to final closings. An experienced team has the skills and acumen to navigate a complex market.
Schedule a consultation with Carla Umlauf at Umlauf Properties Group
. She can provide top-notch guidance on everything from market insights to negotiation strategies. Carla and her team can efficiently help you buy or sell a property in Austin.