The housing market experienced substantial changes in 2023. Rising interest rates and economic uncertainty contributed to a cooling market across the United States. In Austin, sales totaled $17.4 billion, showing the relative health of the housing market despite these challenges.
In spite of the higher interest rate environment throughout 2023, the Austin market provided opportunities for homebuyers. Home prices continued to normalize, as the median sales price for homes decreased by 10% to $450,000 in 2023. Towards the end of the year, as interest rates began to drop, homebuyers in the Austin market responded. In December, demand started to increase with pending sales going up by 8% in Travis County and 11% in Williamson County.
In 2023, many people looked to suburban and outlying areas, as well as new communities to find affordable options. For instance, in Williamson County, Liberty Hill witnessed a surge of over 25% in home sales, while East Austin and West Lake Hills neighborhoods in Travis County experienced a significant increase of more than 15% in sales. The sales of newly constructed homes also rose in both Travis and Williamson counties by approximately 20% due to the consistent pace of construction that reached completion. With housing inventory at around 3 months in Travis and Williamson counties, the market remains competitive for buyers.
The luxury housing market in Austin has shown resilience similar to that of the broader market. In the month of December, there were a total of 248 sales recorded in Travis County, and 101 sales in Williamson County for single-family homes priced at $700,000 and above. The average sales price was $1,279,945 in Travis County and $879,826 in Williamson County, with properties selling for 96% of the listed price. This suggests that these properties are generally priced in line with the current market value.
The housing market in 2024 is expected to remain competitive and filled with opportunities. The market is evolving rapidly, so it is important to discuss your real estate goals and make plans to take advantage of the situation. As your trusted realtor, I can help you understand your buying power and prepare your house for listing.