Recent data from ResiClub shows that the number of homes for sale in Austin, Texas hit a new high at 10,913, marking a 41 percent increase from pre-pandemic levels. Some experts are worried about what this means for the city.
Back in June 2019, the Austin-Round Rock-Georgetown area had 7,727 homes up for sale. Fast forward to June 2023, this number had soared to 8,283 homes listed. Last month, inventory climbed even higher, growing by 24 percent year-on-year.
Remember that article about people from Brooklyn buying homes in Austin during the pandemic? Seems like that bubble is bursting now.
Tweet Link
— Tracey Ryniec (@TraceyRyniec)
July 11, 2024
According to Tracey Ryniec from Zacks Investment Research, the surge in inventory in Austin suggests that the real estate “bubble” formed during the pandemic is now deflating.
For Austin homeowners worried about affordability, there’s good news. The frenzied bidding wars and soaring prices during the pandemic are easing now, with significant price drops seen in the city between late 2022 and early 2024.
While home prices have started to rebound, the increased inventory in Austin provides more options for buyers. This real estate trend is not exclusive to Austin, as Texas, along with Florida, has seen a surge in new home construction in recent years nationwide.
With more choices available, buyers are becoming selective. Recent data from the Austin Board of Realtors (ABOR) shows a 6.3 percent decrease in the median sale price of homes in the city year-on-year, now standing at $450,000. Inventory has grown to a five-month supply.
New listings have decreased slightly, but the total number of active listings has significantly increased. Sales are down compared to the previous year, with homes spending an average of 65 days on the market before getting sold.
Image Source: Brandon Bell/Getty Images