In May, the median price of Southwest Austin home sales was $602,000, up 0.33% from April's $600,000 and up 45.1% year over year. May's prices mark a new record for the area; however, it also marks the smallest month-over-month percentage increase since the start of 2021.
Stagnant prices in Southwest Austin may be in line with the predictions of some local real estate experts that the market is cooling off after months of surging prices and dwindling inventory. In a survey by Austin real estate firm Bramlett Residential of more than 500 real estate agents in the Austin area, 61% said they believed the market was cooling down or stabilizing. The company's internal marketing data also shows a 36.8% decrease in new inquiries since January.
"It’s important to understand that this data does not indicate any drop in prices. In fact, we won’t be surprised if prices increase more, since sales price is a lagging indicator. Likewise, we don’t see a market shift to a buyer’s market. What we do predict is that the market will become more normal. Bear in mind that 'normal' for Austin is an incredibly healthy seller’s market," said Eric Bramlett, broker at Bramlett Residential.
However, housing inventory remains lower than normal—throughout Texas and in Southwest Austin, which has just 0.4 months of inventory. According to the Texas Real Estate Research Center at Texas A&M University, limited stock of affordably priced homes is especially pronounced.
“The extremely low level of supply available is holding back sales,” said Luis Torres, research economist for the center. “The limited inventory for homes priced less than $300,000 is particularly distressing and is stressing home affordability.”