AUSTIN (KXAN) — New data on home listings shows the housing market in Austin continues to cool, with the number of homes listed up more than 150% year-over-year.
Realtor.com’s housing report for July shows 7,794 listings were active in July, a 32% increase from June, and a 154% increase since last July.
More than 4,500 homes were newly listed in July, down from more than 5,500 in June.
“For decades, Austin has suffered from a housing shortage and during the pandemic, the inventory of homes available grew even tighter,” said Ashley Jackson, president-elect of the Austin Board of Realtors. “Our current inventory levels are returning to pre-pandemic levels as the increased interest rates are helping to stabilize our market.”
It’s a trend repeated nationwide. The national inventory of active listings increased by 30.7% in July compared to last year, a record-high growth rate according to Realtor.com.
Austin’s 154% year-over-year increase is the second highest in the country, behind only Phoenix, which saw the number of homes listed jump 159% over last July.
With more options to choose from, Jackson says homebuyers can be more conscious about which home they choose to make an offer on.
“This is great news for buyers who may have been waiting on the sidelines while the market was incredibly competitive,” Jackson said.
In the Austin metro, the median home spent 29 days on the market in July, up from 22 days in June, and just 15 days back in April. But while the number is increasing, it’s still much lower than prior to the COVID-19 pandemic. In July 2019, the median home spent 50 days on the market.
Still, the increased time may be spooking some sellers.
“I do expect to see some price decreases as sellers come to terms with the shifting market,” Jackson said. “As time on the market passes, a seller may feel compelled to lower their price so that they can attract a buyer.”
The Realtor.com report shows more than 6,000 active listings reduced in price in July, a 366% increase over July 2021.
Meanwhile, the median listing price dipped slightly in July to $598,000, down 3.6% from $620,000 in June. The lower price is still 11% higher than last July, when the median home was listed for $537,450.
“I believe that we will continue to see some prices decrease as the market adjusts to higher inventory. This is great news for buyers!” Jackson said. “Though interest rates have calmed the Austin market, rates are still historically low and with higher inventory levels, now is the perfect time to buy a home in the Austin area.”