The Austin-area housing market is seeing inventory levels not witnessed since 2016, according to the latest data from the local MLS.
As of July 21, 2023, there are 11,888 active residential listings across the Austin metro area. This tops the previous 2023 high of 11,888 listings reached just last week. It is a significant jump from one year ago when active listings stood at just 4,771.
Diving into the numbers across Austin's top zip codes, it is clear inventory is swelling in the city's core neighborhoods:
- Downtown 78701 has 163 active listings, up 49% year-over-year
- Hyde Park 78751 has 52 actives, more than double its inventory last July
- Mueller 78758 is seeing 78 available homes compared to just 26 last summer
Suburban communities are also seeing substantial listing growth:
- Cedar Park 78613 has 139 actives, a 72% increase from last year
- Georgetown 78628 peaked at 446 available homes this month
Austin remains one of the tightest housing markets in the U.S., but buyers are beginning to see more options across price points and neighborhoods. The monthly absorption rate has slowed to just 1.09% in July, meaning it would take over 9 months to sell out the current active inventory at the current sales pace. Last year at this time the absorption pace was nearly 3 times faster at 2.77% per month.
While still a seller's market by most measures, Austin area home sellers can no longer expect instant sales and quick close timelines. The average number of days on market for active listings is 48 days, up from just 26 days one year ago. Nearly 27% of listings have now been on the market over 100 days.
The influx of new listings comes as buyers pull back amid rising mortgage rates and economic uncertainty. With listings on the rise and buyer activity slowing, Austin's housing market appears to be normalizing from the ultra-competitive conditions seen throughout the pandemic period. Sellers may need to adjust pricing expectations to align with the shifting market dynamics.
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