Median home prices in Round Rock, Pflugerville and Hutto decreased for the second month in a row in July, according to data from the Austin Board of Realtors.

The ABoR's monthly report for July shows a median home sale price of $476,458 across the three cities in July, down 5.84% from June's median price of $506,001 and up 6.47% from $447,500 in July 2021.

In keeping with previous months, the three-city area's median price in July was substantially lower than the city of Austin's price of $633,000 and higher than the broader Central Texas market, which saw a median sale price of $450,000.

According to the report, home inventory was on the rise in July. Round Rock, Pflugerville and Hutto had a combined 1,201 active listings in July, compared to 933 in June and 543 last July.

As of July, the three cities had seen a combined 3,407 closed home sales this year, compared to 3,694 year-to-date sales in July 2021.

Ryan Leahy, regional president for Austin mortgage lending company HomeTown Texas, said in the report that high inventory combined with a slowing rate of price growth is a sign the local housing market is returning to normal.

"It’s not the intense seller's market it was a few months ago, and sellers should reset their expectations," Leahy said. "For the first time in a long time, buyers have more flexibility and leverage in the transaction.”