Georgetown homes sat on the market longer and sold for less in May, compared to May 2022, a report by the Austin Board of Realtors shows.
Figures for May follow a similar trend Realtors are noticing in 2023, as experts believe the recent downturn is a sign of a stabilized market after housing sales and prices spiked in 2022. It’s a result, Realtors conclude, of rising interest rates.
“Nationally, from May 2022 to May 2023, homebuyers’ purchasing power declined by an estimated 8% to 9% due to the rise in mortgage rates—May’s mortgage rates, averaging 6.4%, were among the highest they’ve been all year,” said Clare Losey, housing economist for ABoR.
According to ABoR, the median price of Georgetown homes in May dropped to $405,000, compared to $495,000 in May 2022—marking an 18.2% decrease. Home sales declined slightly to 142 sales in May, compared to 155 home sales in May 2022.
Meanwhile, as inventory has increased, the amount of time homes spent on the market swelled. ABoR data shows Georgetown’s inventory in May reached 3.4 months, versus the 0.6 months of inventory in May 2022. Months of inventory is considered to be the amount of time it would take for all of the homes currently listed on the market to sell, given no additional listings enter the market. Concurrently, May data shows homes are spending an average of 77 days on the market, compared to last year’s May figure of 12 days on the market.