Summary
Austin, Texas, is currently the strongest buyer’s market in the United States, as there are significantly more homes for sale than there are buyers. This situation follows a construction boom that led to a peak in home availability, along with a drop in demand due to higher mortgage rates.
Key Facts
- Austin has 130% more home sellers than buyers as of September.
- Home prices in Austin have decreased since their pandemic peak, with the median sale price at $508,000 in September.
- There were over 11,000 homes for sale in Austin in September, up from as low as 3,000 during 2021 and 2022.
- Austin saw a rapid increase in home prices between 2020 and 2022, driven by high demand from remote work and domestic migration.
- A construction boom followed the demand surge, leading to more available homes.
- Higher mortgage rates in 2023 reduced buyer demand and contributed to falling home prices.
- Unlike other parts of the U.S., new construction in Austin has helped prevent home prices from becoming too expensive.
- Experts predict that while prices may remain low for now, they could rise again if new construction slows down.
