The Austin housing market experiences a 10.2% price drop as the bubble bursts. Austin, once the epicenter of the U.S. housing market, is experiencing a market readjustment. And that, some analysts say, was when the bubble burst.
After analyzing real estate data obtained from Redfin RDFN, the housing market in the Austin metropolitan area shows signs of a substantial normalization of housing prices compared to the general trends of the pandemic years and prior to the pandemic. The months of inventory in the Austin housing market are only 0.8 months, which means there is a supply of homes for sale in the Austin metropolitan area for approximately 5 weeks. Due to rising home prices in urban Austin areas, an increasing number of Austin homebuyers are turning to nearby suburban communities to meet their housing needs. Despite low inventory, rising rents, and rising home prices, Austin real estate investors with strong investment strategies can still turn a profit. Broadly speaking, home prices in Austin are still markedly higher than figures prior to the pandemic.
Austin is a natural point of interest for real estate investors because its continued growth creates demand and opportunities for investors. However, almost two decades later, it seems that several major cities in Texas, especially Austin, have experienced vertiginous growth in housing construction, homebuying activity and just the roller coaster ride that the pandemic entailed. According to Fairweather, the price correction in Austin has ended, but the new reality for the city is that Austin is now a much more expensive place to live than before. Emily Chenevert, executive director of the Austin Board of Realtors, told Newsweek that the anomalies of the past two years were unsustainable, but that Austin remains an attractive and sought-after market. Austin's housing market has been one of the most popular in the country for several years, with rising home prices, low inventory and high demand.
The Austin housing market is considered to be extremely competitive, and many homes receive multiple offers. It's fairly simple to predict that housing prices in Austin will continue to rise in the near future. According to the Austin Board of Realtors, the slowdown is returning the Austin-area domestic market to pre-COVID normality (Bor). With that said, many real estate experts continue to believe that prices will begin to fall in the coming months.
However, looking at some of the major cities that make up the Austin metropolitan area reveals much greater fluctuations than those experienced by the city of Austin itself. However, according to some, the drop in home prices by 5 percent year-on-year is good news for Austin residents.
