Austin Real Estate Market Statistics: May 2023
, Jun 12, 2023
This is our June 2023 market statistics newsletter. If you’d like to be added, please comment here. Thanks!
Hello and we hope you’re doing well! We ran First Look Statistics for the month of May 2023, which are available below. Year Over Year (YOY) prices continue to decline, but Month Over Month (MOM) prices have stabilized and increased slightly, which is likely due to normal seasonality. As we enter the summer months, we expect demand to begin its seasonal decline, but the overall market is behaving normally and appears to have stabilized.
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Austin Real Estate Market Statistics for May 2023 📈
Year Over Year (YOY) prices continue to decline, but Month Over Month (MOM) prices have stabilized and increased slightly, which is likely due to normal seasonality. As we enter the summer months, we expect demand to begin its seasonal decline, but the overall market is behaving normally and appears to have stabilized.
Key Highlights:
- Months of Inventory (MOI) in the Metro remained relatively unchanged, moving to 3.5 MOI in May vs 3.6 in April.
- YOY Avg Sold Price declined -11.1% in the Metro and -7.3% in the City, which was expected. MOM Avg Price increased +1.8% in the Metro vs April and is now up +12.5% vs the low point in February.
- Avg Days on the Market to sell are now 57 DOM in the Metro and 41 DOM in the City.
- Mortgage rates increased slightly above 7% in May and are now in the 6.9% range.
Pricing Stability and Normal Seasonality
Year Over Year pricing is a severely lagging indicator and a poor indicator of the market trajectory. Most media outlets are reporting YOY pricing, which has fallen -11% to -17% in the Metro. However, Month Over Month pricing has stabilized and ticked up slightly from the month of April in the Metro and the City. The uptick in pricing is likely due to normal seasonality, as we generally see higher sold prices from May to July. It’s important to remember that demand begins to decline seasonally in the summer months and continues to decline through the fall and winter.
Pending Units Remain Strong
The number of properties that went under contract in May 2023 was almost unchanged vs May 2022, which indicates that there is healthy buyer demand in the market. This is the second month in a row with strong pending units, which is a strong leading indicator that the market has stabilized. Buyer purchasing power is down vs May 2022 due to higher interest rates, which is the primary reason we’ve seen a YOY decline in prices. The monthly payment for the average-priced home in the Austin Metro Area is almost unchanged vs 12 months prior.
If you’re a buyer
2023 will likely be viewed as a strong buying opportunity in hindsight. Mortgage rates have not yet come down and are up slightly, but prices have adjusted down and affordability remains unaffected. You will likely have the opportunity to refinance in the future at lower purchase price, which is a unique opportunity. If you would like to buy now, there are many great reasons to buy now.
If you’re a seller
If you need to sell in 2023, you can sell, but pricing and timing are critical. Austin’s market is consistently seasonal and we see demand begin to decline during the summer months. Pricing your property with recent solds is important. It’s as important to review the current properties on the market and to price competitively against any current listings.
As always, real estate is hyperlocal and hyper-situational, so please reach out to us to discuss your specific situation. We’d love to help you and strategize what’s in your best interest!
