Eleven Oaks Realty is proud to present their August 2023 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Remains a Seller’s Market
Though we just came through the slowest market in the real estate cycle, August, Austin remains in a sellers market and a slightly stronger sellers market than we saw last month. In August 2023, the Austin market had 4.49 months of inventory, down 4.26% in month over month comparisons. Though we continue to approach a balanced market, Austin remains at the high end of a seller’s market. In August 2023, sellers received, on average, 96.9% of the list prices, down 0.8% in month over month numbers. We did see an increase in time to sell with a median time to sell of 34 days, up 13.33% in month over month comparisons. The median sold price of a single family home in Austin, Texas was $615,000, down 0.32% in month over month comparisons.
What does this mean for buyers? Despite being in a sellers market, it is one of the most favorable markets for buyers that we have seen in a while. When you compare median active list price and median sold price, we are seeing room to negotiate. Though sellers are pricing higher than they were last year, they’re willing to come off their list prices more to make a deal. Buyers also have more time to make decisions than they have in the last 5 years. Yes interest rates are higher, but nearly every other aspect of the home buying process is easier for a buyer.
What does this mean for sellers? Though buyers do have a few more advantages than they did last year, sellers are still in strong positions. Prices are remaining around the same and sellers are able to sell in a reasonable amount of time. You can’t count on a weekend, but a month or a little over is generally what it’s taking. Plan for this increase in time on market and you’ll be much happier with your home sale.
Median Sold Price Down 0.8%
In August 2023, the median sold price of a single family home in Austin was $615,000 compared to $620,000 in August 2022, showing an 0.8% ($5,000) decrease in year over year numbers. Last month, the median sold price was $617,000, showing an 0.3% decrease in month over month comparisons. Though we are hearing stories of prices going down, we aren’t seeing it as much in the numbers. Median price has remained nearly the same.
Number of Homes Sold Down 2%
In August 2023, there were 757 single family homes sold in Austin compared to 774 in August 2022, showing a 2% decrease in year over year numbers. Last month, in July 2023, there were 751 single family homes that closed escrow, showing an 0.8% decrease in month over month comparisons. Despite August being a typically slower month, we saw a similar amount of home sales as last month and last year.
Average List to Sales Price Down 1.5%
In August 2023 sellers received, on average, 96.94% of their list prices compared to 98.44% in August 2022, showing a 1.5% decrease in year over year numbers. Last month, sellers received, on average, 97.72% of their list prices, showing an 0.8% decrease in month over month comparisons. With median price virtually the same in year over year and month over month comparisons, it appears sellers are pricing higher than they were last year and when they aren’t getting it, they’re reducing what they’re willing to take to make a sale happen.
55% Increase in Time to Sell
Perhaps where we are seeing the most slow down is in a buyer’s decisiveness. In August 2023, the median time to sell a home in Austin was 34 days compared to 22 days in August 2022, showing a 55% decrease in year over year numbers. Last month, in July 2023, the median time to sell was 30 days, showing a 13.3% increase in month over month comparisons. This trend matches what we are seeing in the market. Buyers are taking longer to get out and see properties in person and they’re taking longer to decide to make an offer. Sellers who adjust to this new normal and are patient will be more successful in the process, and will also be much less stressed when it takes a week from the time a buyer sees their house to present an offer in writing. Today’s buyers are taking the time to analyze every aspect of the purchase, unlike 2 years ago when they had to make a decision in a matter of minutes.
7.25% Decrease in Median $/SqFt
In August 2023, the median price per square foot was $307, compared to $331 in August 2022, showing a 7.25% decrease in year over year numbers. Last month, the median price per square foot was $310, showing a 1% decrease in month over month comparisons. Buyers are able to get better deals in terms of a price per square foot cost than they were in months/years prior.
7% Decrease in Total Sales Volume
In August 2023, the totally sales volume was $607,128,907 compared to $653.71MM in August 2022, showing a 7% decrease in year over year comparisons. Last month, the total sales volume in the Austin real estate market was $606.09MM, showing an 0.2% increase in month over month comparisons.
43% Increase in Months Supply of Inventory
In August 2023, there was 4.49 months of inventory on the market compared to 3.14 months in August 2022, showing a 43% increase in year over year numbers. Last month, there was 4.69 months of inventory on the market, showing a 4.3% decrease in month over month comparisons. This August was busier than years past and buyers captured more of the inventory.
5% Decrease in New Pending Listings
In August 2023, there were 751 homes in Austin that accepted a contract compared to 790 homes in August 2022, showing a 5% decrease in year over year numbers. Last month, 815 homes accepted a contract, showing a 7.9% decrease in month over month comparisons. Again, we’re seeing small decreases but not huge drop offs in price and sales. Time to sell? Yes definitely. But price and number of sales are remaining fairly steady.
12% Increase in Median List Price of Active Listings
Just as we surmised in earlier analysis of the data, sellers are pricing higher than they were last year. In August 2023, the median list price of active listings was $726,000 compared to $650,000 in August 2022, showing a 12% increase in year over year numbers. Last month, the median list price of active listings was $725,000, showing an 0.1% increase in month over month comparisons.
1.75% Decrease in Number of New Listings
In August 2023, there were 1,120 homes introduced to the market compared to 1,140 homes in August 2022, showing a 1.75% decrease in year over year comparisons. Last month, in July 2023, there were 1,130 homes introduced to the market, showing an 0.5% decrease in month over month comparisons. This year, we are seeing virtually the same number of sellers introduce their homes to the market. Though it is a drop off from the peak, we are not losing sellers, which is helping us keep inventory on the higher end of a sellers market.
0.3% Increase in Homes on the Market
In August 2023, there were 2,710 homes on the market compared to 2,700 in August 2022, showing an 0.3% increase in year over year numbers. Last month, there was 2,850 homes on the market, showing a 4.8% decrease in month over month comparisons. August is typically a slower month for market activity, so it is not surprising we saw a decrease from last month. Interestingly, we aren’t seeing much of a change from last year, another indicator of market stability.
August 2023 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for August 2023 Austin home sales below. The most expensive home that sold in August 2023 sold for $6,500,000 and the least expensive home sold for $230,000. Homes ranged in size from 609 sqft – 10,991 sqft with an average size of 2,249 sqft. The average price per square foot for a home that sold in Austin in August 2023 was $357.29 with the lowest being $140.96/sqft and the highest being $1,329.39/sqft. It took, on average, 46 days to sell a home in Austin and sellers received, on average, 93.09% of their original list prices.
| Beds | Baths | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Min | 1 | 1 | 609 | $235,000 | $140.96 | $230,000 | $140.96 | 51% | 51% | 0 |
| Max | 9 | 9 | 10,991 | $6,950,000 | $1,447.10 | $6,500,000 | $1,329.39 | 111% | 111% | 407 |
| Avg | 3 | 3 | 2,249 | $835,919 | $370.29 | $803,747 | $357.29 | 96.99% | 93.09% | 46 |
| Median | 3 | 3 | 2,077 | $638,500 | $315.77 | $622,750 | $304.78 | 98% | 95% | 29 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | August 2023 |
| Property Type | Single Family Homes | Number Sold | 782 |
| Source: | ABoR Sales Data | Area | Austin |
Time to Buy? Sell?
As we always say, the best time to buy or sell a home is when you need to buy or sell. If you have a house to buy, buying when its a sellers market may hurt you on the buying end, but you’ll make it up on the selling end. If you’re trying to get into the market for the first time, the only way you’ll know that we’ve “hit bottom” is when its in the rear view mirror. Work with professionals who can help you analyze your financial and lifestyle to determine if now is the right time to buy or sell.
Comparing to any other market in the country, especially markets that aren’t as strong, these numbers show it’s’ time to sell. Comparing to only the Austin market in the past several years, it’s time to buy! Though it is still a seller’s market, we are still hovering near a balanced market, which is making buyers feel like they have more of a say in their home search. They no longer have to make decisions on offers in a matter of hours and are able to negotiate some with sellers. They aren’t able to buy at rock bottom prices, but they are getting fair deals.
If you’re looking to buy, get with a knowledgeable mortgage broker who can guide you to getting the lowest interest rate possible. We are starting to see the frenzy pause for a minute, as hesitant buyers wonder what to do. Take advantage of lower demand and get in before interest rates rise again. The best homes are still selling quickly, so you don’t want to wait too long once you see a home listed that you like. If you’re looking to buy, we can help you be successful. We have experienced several market shifts in our careers and know how to navigate them. For more info about buying a home, visit Buy a Home in Austin.
If you need to sell, don’t be discouraged. Know it’s going to take a little more time, but also know that if you stick it out, you’ll be successful. If you’re a seller who needs to sell now, work with a professional Realtor who can help you position your home as the best value on the market. Check out our 88 Ways to Sell Your Home Faster and For More Money for some tips on how you can prepare your home to meet the market. For more info about our Home Selling Program and why it is the best in Austin, check out Sell My Austin Home.
Questions About the August 2023 Austin Real Estate Price Report?
Do you have questions about our August 2023 Austin Real Estate Price Report? Call us at (512) 827-8323 or email us at info@11OaksRealty.com and we’ll help you in any way we can. If you’re looking to buy or sell Austin real estate, don’t forget to check out our Buyer Resources and our Seller Resources for more tips.
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