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For anyone buying a house in the past several years, the price tag as well as the ins and outs of market dynamics can be intimidating. For one who is curious exactly what those numbers were in the past year compared to 2022, the Austin Board of Realtors Dec. 2023 and Year-End Central Texas Housing Market Report will provide that information for all of the five counties in the Greater Austin area.
'Last year, a confluence of factors, but especially mortgage rates, posed a drag on the Austin housing market,” ABoR Housing Economist Clare Losey said. “A significant secondary factor was the artificial demand created by conditions during the COVID-19 pandemic—i.e., a low interest rate environment, work from home, a preference among buyers for more space, etc.—which led to a certain number of buyers deciding to purchase ‘early’ in 20202022 vs. otherwise purchasing a home in 2024, 2025, etc.”
Losey said that Hays County witnessed less of a moderation in sales and prices than the broader Metropolitan Statistical Area, which was mainly due to the higher concentration of affordable homes within the county compared to much of the rest of the Austin MSA.
“The year-over-year decline in median sales price from 2022 to 2023 in Hays County was fairly commensurate with the decline in purchasing power from higher rates,' Losey said.
According to the Austin Board of Realtors, in Hays County there was almost no difference in the amount of residential homes sold for all of 2023 compared to 2022, which beats every other county in the five-county Austin MSA. There were also several other interesting statistics for the Hays County Housing Market for 2023 based on the report. The median price for a residential home was $397,330, which was 9.7% less than in 2022. There were 5,989 new home listings, which was 6.8% more than the previous year. There was a 13.6% lower total dollar amount on all homes sold in 2023, ($2,162,632,140) than 2022.
For the Austin Board of Realtors 2023 Dec. Report in Hays County, data is taken for the month of Dec. and compared to the same month in 2022. There were 362 residential homes sold in Dec., which was 4.7% less than the same month in 2022. The median price for residential homes was $401,500, which was higher than the median for the entire year but 13.6% lower than the same month in 2022. There were 335 new homes listed on the market, which was a 39% increase from Dec. of 2022. There were 1,311 active home listings in Dec. 2023, which was 17.9% more than Dec. 2022. There were 330 pending sales, which was up 18.7 % from Dec. 2022. The total dollar amount of homes sold was $174,205,270, which was 7% less than Dec. 2022.
According to a press release by the Austin Board of Realtors, the Central Texas housing market continues to find its footing despite macroeconomic factors impacting the broader housing market and economy For the entire Austin-Round Rock Area when compared to the 24.2% decline in pending sales in 2022, 2023 saw a 3.0% decline to 30,353 sales.
Losey pointed to higher mortgage rates as the biggest obstacle for potential homebuyers in 2023 in the whole of the Greater Austin Area and said it underscores the lack of housing accessibility, specifically for first-time homebuyers.
“The single biggest factor constraining the Central Texas housing market in 2023 was the gradual rise in mortgage rates, which peaked in late October. This caused sellers, and buyers essentially, to continually readjust to the current rate environment. While we have seen some leveling off in home prices, the Central Texas region still lacks a sufficient inventory of affordable homes for sale, especially those homes priced below $300,000, which is keeping many wouldbe first-time homebuyers on the sidelines.”
When looking to 2024, Losey foresees annual trends to be relatively consistent with this year and mentions that current data is favorable compared to pre-pandemic numbers.
“Home prices and sales will likely remain essentially flat, to the tune of a 5.0% increase or decrease year over year in 2024.”
To view market trends for the entire Greater Austin area, go to this link and click Year-End and December 2023 report: abor.com/news-center/ market-stats.
