The latest Austin Board of Realtors report shows home prices are down and inventory is up in Southwest Austin compared to this time last year.

For the month of January, the median home price in Southwest Austin was $537,450, down from $587,100 in January 2022.

Southwest Austin is not alone with this downward trend, as median home prices throughout Austin decreased 6.3% to $450,000 in January 2023. This is the largest drop since July 2011, according to the ABoR report.

While prices are dropping, inventory is going up in the area, according to the report. In January 2023, there were two months of inventory compared to January 2022 when there were 0.4 months of inventory, the report shows.

"January's data demonstrates the Austin-Round Rock market is continuing to find a post-pandemic normal," ABoR President Ashley Jackson said of the report.

Jackson said because of the "abnormal market" over the past three years since the pandemic began, it is important to also look at month-to-month numbers to get a true reflection of the current market. When comparing January 2023 numbers to December 2022 numbers, pending listings increased 32.4% to 2,581.

Jackson said although the market is cooling down in the Austin area, outlying cities in Central Texas are seeing home prices going up.

"When we have a city like Austin challenged by affordability, the entry point in surrounding areas will slightly increase as people try and find neighborhoods they can afford," Jackson said. "These outer county data sets are reflective of affordability disappearing from Austin and closer-in suburbs, hence why buyers are moving further out in Central Texas."