Home prices in Austin continue to cool but have a ways to go to reach pre-pandemic levels

AUSTIN (KXAN) – Home prices in Austin continue to cool but are still quite high compared to this time four years ago, according to the Austin Board of Realtors November report. 

The report shows that the median home price in the Austin and Round Rock region – around $425,000 – is down nearly 10% compared to last month. Though prices are dropping, they remain considerably high relative to pre-pandemic princes, ABOR said. 

“On a year-over-year basis, we certainly saw a decline in November,” said Clare Losey, the housing economist for the Austin Board of Realtors. “However, relative to November of 2019, the median sales price in the Austin [metropolitan sales area] is about 40% higher.” 

“So overall, home prices are still very much elevated,” Losey continued. 

Nevertheless, Losey said the depreciation is a welcome relief, “especially to those lower income or first-time buyers who would not have otherwise been able to enter the door had home prices continued to appreciate at an honestly and unsustainable pace.” 

One factor contributing to the decrease is homes staying on the market longer than in recent years. During the frenzied market, as Losey calls it, during the pandemic, homes would stay listed for less than a month before finding a buyer. Now, the homes are staying on the market for around 75 days on average. 

“We have seen somewhat of a moderation in sales activity from the height of the COVID-19 pandemic, which, again, is largely to be expected,” Losey said.