July 2023 Market Update
“The ability to buy a home remains the best way to create generational wealth, and that needs to be more accessible to everyone.” Dr. Clare Losey - ABoR Housing Economist
Despite the continued strength of the housing market during the first half of the year, there remains a requirement for lasting solutions to tackle the issues of affordability and housing availability.
Active home listings surged by 38.4% to reach 9,631, resulting in a housing inventory of 3.7 months. Pending sales also rose by 19.1% with 3,110 transactions, while the average time homes spent on the market increased to 61 days, up by 43 days compared to June 2022. Dr. Clare Losey emphasizes the need for increased inventory to accommodate the region's growing population despite the market's overall stability.
In terms of affordability, the moderation in home prices throughout the region over the past year has eased the constraint posed by higher rates. But more work needs to be done to fully address this. The region simply needs more inventory at price points affordable to first-time buyers — as home prices remain elevated relative to incomes across the region.
The region’s economy is a major factor in the housing market’s performance. The robust and varied economy established in Central Texas plays a crucial role in assisting the region, along with our housing market, in enduring unfavorable economic circumstances.
At the Central Texas Housing Summit on July 26, ABoR will address challenges by providing a comprehensive outlook on the housing market and local, state, and national economies. This event is crucial for finding solutions and implementing measures to address the region's inventory needs and affordability concerns for the coming decades.