AUSTIN (KXAN) — Just days after the Austin Board of Realtors said the local housing market is starting to “rebalance,” Zillow has released a much harsher outlook: the Austin market is now “ice cold.”
The characterization comes as Zillow released its market report for December 2022.
The report shows homes in the Austin area are spending a median of 68 days on the market, more than in any other major metro nationwide. Back in December 2021, Zillow reported homes in the area were on the market for a median of 22 days.
Another metric in the report shows homes aren’t selling for as much as they used to. In November, just 11% of listings sold for higher than the asking price, down from 47% a year before.
That may be leading some homeowners to wait before putting their home on the market. The number of new listings is down 26% year-over-year. Zillow said some potential sellers may be waiting for the spring selling season before listing.
The Austin Board of Realtors has pushed back against the ‘ice cold’ characterization. In a statement shared with KXAN, CEO Emily Chenevert said sales dollar volume in the metro area was more than $21 billion in 2022, even as home price appreciation slowed after two years of skyrocketing values.
“Year over year comparisons are helpful in understanding where we were and where we are now in terms of raw numbers, but comparing our market to the past two years of anomaly conditions isn’t a true comparison,” Chenevert said. “To write off Austin as an ice cold market is not painting an accurate picture of the state of our market and misrepresents the facts on the ground that there is still incredibly high demand, not enough inventory and a looming affordability crisis.”
Meanwhile, the Austin metro has plummeted from Zillow’s list of hottest real estate markets of the year, ranking 30th nationwide for 2023. Austin ranked 10 in 2022 and number one in 2021.
The title now goes to Charlotte, North Carolina. Dallas is the only market in Texas to feature in the top 10 nationwide, ranking as the fourth-hottest in the country.
Along with Austin, last year’s hottest market, Tampa, also fell out of the top 10.
Zillow said when determining the list of hottest markets, it considers factors such as expected growth in home values, projected changes in how many households are owned rather than rented and projected job growth compared to new construction.
Competitor Redfin recently released its list of the hottest zip codes when it comes to real estate. Leander’s 78641 ranked as the ninth-hottest in the country.