December 2023 Market Updates

Paving The Way for More Affordable Living
December 2023 Market Update

In 2023, the median home price in the Austin-Round Rock MSA dropped by 10.2% to $450,000, according to the Austin Board of REALTORS®. Despite a slight 3.0% decline in sales to 30,353 and a 17.0% drop in sales dollar volume to $17.5 billion, the Central Texas housing market is stabilizing. The market experienced an 8.9% decrease in closed listings in December, with a median sales price of $443,753.

Kent Redding, the 2024 ABoR president, notes that the housing market is moving towards a more sustainable pace, with inventory reaching an eight-year high. Higher mortgage rates impacted closed sales and median prices, but he suggests that buyers and sellers seek guidance from expert REALTORS®.

Clare Losey, ABoR's housing economist, identifies rising mortgage rates as a significant constraint for potential homebuyers, especially first-timers. Looking ahead to 2024, she anticipates stable trends with a 5.0% fluctuation in home prices and sales. Despite challenges, such as limited affordable inventory below $300,000, housing demand remains strong.

Redding emphasizes the importance of addressing housing challenges in Central Texas due to rapid population growth. He stresses the need for community and government officials to prioritize solutions for housing accessibility. ABoR will continue advocating for attainable homeownership and participating in policy discussions to impact housing supply positively.

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