The housing market in the city of Austin is beginning to stabilize as median sales prices drop and monthly housing inventory climbs toward healthy levels, a February report from the Austin Board of Realtors shows.

Throughout the Austin-Round Rock area, monthly housing inventory increased from 0.4 months in February 2022 to 2.6 months of inventory in February 2023. The median home price dropped 12.2% year over year to $436,419.

In the city of Austin, the median home price fell 6% year over year from $565,000 in February 2022 to $530,000 in February 2023. Monthly housing inventory increased from 0.3 months to 2.2 months year over year, according to ABoR.

“Austin’s housing market is trending in the right direction. Buyers have more options and negotiating power with each passing month, and sellers have more time to make their next move,” ABoR President Ashley Jackson said. “Remember, a healthy housing market isn’t defined by breaking records every month, but by market activity that’s steady-paced and sustainable.”

In contrast to the rest of the metro, median home prices in the Central Austin region increased 1.5% from $682,000 in February 2022 to $682,228 in February 2023. Home prices also increased month to month, as the median price in January was $680,000.

“Incentives, down payment assistance programs—anything that increases housing accessibility—are very important right now,” Jackson said. “Many buyers remain priced out of the market, especially in Austin proper. There is still plenty of work to do to address systemic issues in affordability, accessibility and missing middle construction, and those should remain our community’s No. 1 concern.”