Central Texas Market Update - January 2023
This video will look at the December stats, but the 2022 recap is coming soon. If you only watch one, I suggest watching the year-end report.
If you are looking to buy or sell a home in Central Texas, contact me via email or at 512-650-7300. If you prefer to read instead of watch, here are the chart and transcript.
In December, 1,136 resale homes closed in Travis & Williamson Counties which was down 51% from December 2022. The median price in December decreased year-over-year by 3.6% to $473,405. It also marks an 21% decline from the peak median price of $600,000 that we hit in May. In real estate, the primary way we measure home values is with the median price. However, there are other numbers worth examining. The average price of a home decreased by 3.9% year-over-year to $604,311. That‘s down 18% from the peak in May. The average price per square foot decreased by 6.1% to $292, and is down 20% from the May high-level mark.
The number of available homes in December was 4,106, up 184% from last December. During December, 950 new listings hit the market which is down 28% from last year.
The average sales price to list price ratio was 96.5%. For homes that closed in December, the average days on market was 61, up from 22 last year. The December sales ranged from a low of $150,000 to a high of $11,000,000.
I don’t expect the trajectory of prices to change in the next couple of months. Interest rates have come down a bit off their highs, currently sitting around 6.5%, but are still higher than just about anyone predicted a year ago. While the mid-term and long-term looks great for Austin housing, the short-term is where the rough patch lies. While I read and hear people waiting for a foreclosure crisis, I do not expect that to happen. Foreclosures in the area remain very low. Further, the Austin area is actually the #1 housing market when looking at equity-rich homes. A house is considered equity rich if the loan balance is less than half the value of home. At the end of October, 72% of the houses with mortgages in the area were equity rich. With that amount of equity in the area, if someone gets behind on their payments, they should be able to sell their house and avoid foreclosure.
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]. 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 ACTRIS for the periods cited.
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