Central Texas Housing Report - October 2023
Central Texas home sales continue to decline with the interest rates over 7%.
Welcome to the October 2023 edition of "How's the Market in Central Texas.” Before we look at the figures, let me say that the stats I’m providing are resale homes only in Travis and Williamson Counties. More about the stats at the end.
In September, 1,271 resale homes closed in Travis & Williamson Counties which was down 22% from September 2022. The median price in September decreased 5.9% year-over-year to $475,000. Compared to last month, the median price decreased 2.8%. Since the start of 2023, the median price is up 1.9%. In real estate, the primary way we measure home values is with the median price. But, there are other numbers worth examining. Year-over-year, the September average price of a home dropped 3.1% to $615,651 and the average price per square foot decreased by 5.4% to $297.
The number of available homes in September was 5,765, down 8.8% from last September. The trend of fewer homes available now than last year will likely continue for a few more months. Essentially, when interest rates increased last spring, the number of available listings shot through the roof. Now, as we compare back to that time frame, we’re seeing it reflected. During September, 2,048 new listings hit the market which was down 22% from last year. Every month this year, the number of new listings hitting the market has been lower than last year. So while demand is down, the fact that we have fewer homes coming to the market has been a good counterbalance.
Last month, the average sales price to list price ratio was 97.2%. The September sales ranged from a low of $120,000 to a high of $6,000,000. For homes that closed in September, the average days on market was 57, up from 36 last year.
As mortgage interest rates are now around 7.5%, I expect we will see further erosion of buyer demand. Of course, this is traditionally a slower time of year anyway, so we’ll likely see historically low number of sales. I believe prices will come down, but not crater. By the end of the year, I expect prices will probably be slightly below where we started the year.
If you have any real estate related questions, please don’t hesitate to call or text me at 512-650-7300 or email me at [email protected]. Of course, I’d love to earn your business if you’re planning to make a move in the coming months. Thanks for watching “How’s The Market in Central Texas.”
The stats I’ve cited are resale homes only in Travis and Williamson County classified as single family residential, condominium, or townhouse. This is different than the stats released by the Austin Board of Realtors which include all types of homes and also include Hays, Bastrop, and Caldwell Counties. Plus, their numbers include any new construction homes listed in the MLS.
Statistics based upon information from Unlock MLS for the periods cited.