February marks the seventh month straight of declining median home prices in the area. Compared to the previous year, median home prices are down 21.7%, data shows.
Home prices in the larger Austin-Round Rock area are also on the decline, data shows, but still remain lower than prices in Northwest Austin. The Austin-Round Rock metropolitan area peak in May 2022 was $550,000, while prices in February are down to $436,419. This represents a 12.2% decrease in prices compared to the previous year.
The number of houses on the market and their average rate of sale has decreased year over year in Northwest Austin, indicating the housing market is slowing down, according to ABOR. Housing inventory was at its peak in recent months in September at 2.5 but has since held steady at 1.5 since December.
Housing inventory in Northwest Austin still remains low compared to gains in the Austin-Round Rock metropolitan area, which currently sits at 2.6 and reached a peak of 3.2 in October.
Bridging pricing gaps
While home prices in Northwest Austin have been higher than in the Austin-Round Rock metropolitan area for several years, that difference was about $20,000 in February 2020. Fast forward to Feburary 2021-22, and that difference jumped to nearly $100,000 in some cases.
In February 2023, the difference between Northwest Austin and the Austin-Round Rock area is coming back down as well. Northwest Austin median home prices are at $470,000 compared to $436,419 in the larger metro area, a difference of around $35,000.
In Northwest Austin in February 2020, the median home price was $347,500, compared to the Austin-Round Rock metropolitan area median of $327,140.