Rising interest rates continue to put downward pressure on Austin real estate activity. As interest rates on 30-yr mortgages hit roughly 7.5% this week, the drop in activity continued.
Transactions are also much lower, with September transactions down 24% vs. August. A decline is normal entering the fall as things slow down, but this was a steeper drop off compared to previous years, where the drop from August to September from 2020-2022 averaged -6%, though in 2019 that drop was -15%.
The pile up in inventory continues with properties priced above 2M signaling 10-11 months of inventory (with some price ranges showing significantly more than that).
Overall inventory levels suggest Austin has moved into a more balanced market with closer to 6 months of inventory. While the frenetic pace of the last few years has subsided, metrics still indicate a healthy market that is simply a bit more balanced between supply and demand.