Amplify Culture
Perspectives: Kendall Garrison on Austin’s Mid-Year Housing Data
Recently, Unlock MLS released its year-to-date housing data for the Austin-Round Rock-San Marcos MSA. I thought I might take this opportunity to assess the status of one of the most important pillars of our regional economy.
It comes as no surprise that housing affordability continues to be a challenge in the Austin area. This is especially true as mortgage rates remain north of 7%. And while prices might have softened – there was a 2.2% decline in median sales price over the first half of the year compared to 2023 – it still is not enough to offset decreased buying power for consumers in this current market. These rising interest rates also temper the value of long-term assets (like real estate), so these are normal market forces at play.
It’s also true that the housing market has a short memory. While prices are still well above where they were only five years ago, some sellers may still expect to get 2022 sales prices in 2024. This is, to be blunt, unrealistic, and not reflective of the current environment. That’s one of the biggest factors when looking at the 13.4% drop in sales prices in June.
My two cents? As a real estate guy, I think there’s room for optimism. Seeing five months of inventory is positive as it indicates the market is beginning to approach a healthy real estate market where buyer and seller expectations are balanced out. But one consistent truth remains: we simply need to do more in the region to make housing attainable and accessible across all price points so Austin can remain a community for all.
This is the kind of context we try to provide at Amplify. Two things can be true: that this market feels worse than it is because of recent historically low rates, and that the housing market continues to be pretty lousy for low-to-moderate income borrowers. For those who are looking for a new home, our goal is to match you with the products best-suited to help – or create a timeline when buying might make the most sense for you.
So unless the real estate market somehow resets overnight, it’s still going to take a little time for things to “feel” normal again. Rates will drop eventually – but they will land closer to the historical neighborhood of 5.5-6% and not the 3% we saw in 2021. In the meantime, the best thing borrowers and sellers can do is work with experts who keep you grounded. Nothing beats transparency and education – and nobody beats Amplify when it comes to offering those.
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