Austin Texas February 2023 Housing Market Report
In January, residential home sales declined 27.3% year-over-year to 1,634 closed sales and sales dollar volume declined 29.1% to $917,954,115. New listings dropped 16% year-over-year to 2,988 listings while pending listings dropped 16.7% to 2,581 transactions. Monthly housing inventory increased 2.3 months to 2.7 months of inventory, and homes spent an average of 76 days on the market, up 47 days from January 2022, but only up three days from December 2022.
When looking at the added context of month-to-month changes from December 2022 to January 2023, in addition to a modest change in days on market, new listings increased 63.4% to 2,988 month-to-month. This demonstrates that sellers see an opportunity in this market. At the same time, buyers also were more active in January 2023 compared to December 2022 as pending listings increased 32.4% to 2,581.
Outlying areas like Caldwell and Hays counties are the most affordable pockets in Central Texas. When we have a city like Austin challenged by affordability, the entry point in surrounding areas will slightly increase as people try and find neighborhoods they can afford. These outer county data sets are reflective of affordability disappearing from Austin and closer-in suburbs hence why buyers are moving further out in Central Texas.
A new report by the Redfin shows that the total value of U.S. homes has declined by 4.9% from a record high of $47.7 trillion in June to $45.3 trillion at the end of 2022, signifying the largest June-to-December percentage decline since 2008. As mortgage rates have increased, with the 30-year fixed mortgage rate reaching 6.36% in December, double what it was at the start of 2022, Americans have become more reluctant to buy homes, leading to a drop in prices. Redfin has highlighted that the Bay Area has seen the largest drop in real-estate value compared to other parts of the country, with the total value of San Francisco homes falling by 6.7% in December. However, the Florida housing market has remained robust, with the largest increase in real-estate value compared to other parts of the country. The report noted that while the value of urban homes increased by 2.5% year over year, the value of suburban properties jumped 6.4% year over year in December. The report also pointed out that while some experts see “armageddon” in the real estate market, others believe that the most challenging time for the market has passed, pointing to data that shows the market is showing signs of recovery. Redfin Economics Research Lead Chen Zhao has stated that the total value of U.S. homes remains roughly $13 trillion higher than it was in February 2020, the month before the coronavirus was declared a pandemic.
When it comes to buying or selling real estate, it’s important to stay informed about the market and the various factors that can impact it. However, it’s equally important to take a critical approach to the information you receive and avoid being swayed by sensational headlines or reports. And guys not only I’m sharing this information with you but I’m also in the market myself either I’m going to buy another investment property or I’m going to buy another primary residence then either I have to make a decision where I’m going to rent out my current property or sell it if you don’t know what the market tells me that’s what I’ll do. So whether you are in the market you buy or so this is definitely the time to keep your ears to the street and when the opportunity to present itself take it. That being said if they might have permission and let me know when you’re ready the next time thanks!