Area experts said this trend still indicates a stabilizing market.
“Last month’s housing market activity demonstrates not only a stable market, but one where optimism for the months ahead continues to grow,” ABoR President Ashley Jackson said in the May 2023 Central Texas Housing Market Report.
In May, the median price of homes in Leander was $475,000 compared to $560,000 last year in May, which is a 15.18% decrease, ABoR data shows.
While home prices in Leander continue to decline, they are starting to slightly increase in Liberty Hill. The median home price in Liberty Hill was $480,000 in May—an 8.71% increase compared to $441,531 in May 2022.
Home sales in both of the cities, however, are on a steady decline.
Last year in May, home sales in Leander were 115—which is slightly lower compared to 96 in May this year. Similarly, in Liberty Hill there were nine home sales in May, which is down from last year at 15, according to ABoR data.
Experts said homebuyers’ purchasing power has declined compared to last year in May due to rising mortgage rates. However, the balancing of home prices is helping diminish the downturn in purchasing power.
“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,” ABoR housing economist Clare Losey said in the report. “However, in Austin, the moderation in home prices has helped to mitigate the decline in purchasing power.”