AUSTIN (KXAN) — Austin’s housing market continues to “trend towards more normal and sustainable levels,” according to the July housing report from the Austin Board of Realtors (ABoR).

The median sales price in the Austin metro area, which covers Bastrop, Caldwell, Hays, Travis and Williamson Counties, was $515,000, a record for the month of July.

But monthly year-over-year increases are slowing. Median prices jumped 8% since last July, marking the first time since June 2020 that prices did not increase by double digits.

Meanwhile, housing inventory in the metro area hit 2.7 months, the highest level since November 2018.

“In every aspect of our market, realtors are seeing positive signs that Austin’s housing market
continues to normalize,” said ABoR President Cord Shiflet. “On top of rising housing inventory,
home price growth is much closer to the 4-5% annual growth that is typical for a healthy market. In
addition, homes sold slightly below list price for the first time since December 2020, proving that
buyers are gaining negotiating power in the market.”

Prices remain highest in the city of Austin itself. The median home sold for $633,000 in July, an 11% increase over last July. In Travis County as a whole, the median sales price was $610,000.

The largest increase in median prices was in Caldwell County. The median price there of $379,536 was a 45% increase year-over-year.

According to ABoR data, closing prices were 98.8% that of listing prices in July, meaning the average home sold for slightly below the asking price. ABoR said that’s a “significant change” from the average 104.1% close-to-list price seen in the first half of 2022.

“It’s not the intense sellers’ market it was a few months ago and sellers should reset their expectations,” said Ryan Leahy, regional president for mortgage lending company HomeTown Texas. “For the first time in a long time, buyers have more flexibility and leverage in the transaction.”

That means buyers can be more choosy about which home they make an offer on, leading homes to spend a little longer on the market. The average home for sale spent 22 days on the market in July, up from 12 in July 2021.

“I do expect to see some price decreases as sellers come to terms with the shifting market,” said Ashley Jackson, ABoR president-elect. “As time on the market passes, a seller may feel compelled to lower their price so that they can attract a buyer.”

A report from back in June found about a third of all homes on the market in Austin were reduced in price.

Median prices have decreased over the past couple of months in Travis, Williamson and Hays counties.

In the city of Austin, prices were down 5% since May. Travis County prices are down 7% since May, while Williamson and Hays counties are down 5% and 4%, respectively.