Austin Real Estate Prices Fall to March 2021 Levels: September 2024 Update

Austin Real Estate Prices Fall to March 2021 Levels

September 16, 2024 : The Austin real estate market has experienced significant changes in recent years, particularly in terms of median sold prices. As of September 2024, the median sold price in Austin has fallen to $428,125, a figure last seen in March 2021 when the median sold price was $425,000. This decrease highlights a notable market shift from the rapid price increases observed over the past few years.

In 2020, the Austin real estate market saw median home prices rise steadily, with the average median price at $344,500. The year ended with prices climbing as high as $366,585 in December. This growth set the stage for 2021, a year marked by even higher demand and price increases. By March 2021, the median sold price reached $425,000, and prices continued their upward trajectory throughout the year, peaking at $480,000 during the summer months. The year closed with a median sold price of $475,000 in December, and the average median price for 2021 was $461,500.

The upward momentum continued into 2022, where Austin's housing market reached its highest levels. The median sold price hit a peak of $550,000 in May and June 2022, marking the height of the real estate boom. However, by the end of 2022, prices started to decline, reflecting a cooling in the market as interest rates increased and affordability became a concern for many buyers. The year ended with a median sold price of $450,000 in December, down from the mid-year high. The average median price for 2022 was $497,048, showing just how significant the market surge had been.

As 2023 progressed, the real estate market began to show more signs of stabilization. The median sold prices fluctuated but remained lower compared to the previous year. In March 2023, the median sold price was $450,000, and by the end of the year, the market had slightly dipped to $440,415 in December. The average median price for 2023 was $450,150, reflecting a market in transition from the rapid growth of previous years to a more moderated pace. In 2024, the downward trend in prices continued. By March 2024, the median sold price had fallen to $442,990, and by September 2024, it dropped further to $428,125. This level marked a return to the pricing seen in early 2021, signaling a full correction from the highs of 2022. The average median price for 2024, up to the most recent data, is $441,762, further illustrating the cooling trend in the market.

This data shows how the Austin real estate market has shifted from unprecedented growth to a more balanced state. The rapid price escalation in 2021 and 2022, fueled by low interest rates and strong demand, eventually gave way to a cooling off period. Rising interest rates, economic uncertainty, and affordability issues have all contributed to the current decline in prices. Despite the decrease in median sold prices, the Austin market remains significantly above the pre-pandemic levels of 2020, where the median sold price was $330,000 in March of that year. The market correction, while notable, has not erased the gains made during the housing boom. As a result, the long-term trend still points toward growth, though at a more sustainable rate than the surge seen in 2021 and 2022.

For those looking to buy or sell in Austin, understanding these market trends is critical. While prices are down from their peak, they are still historically high. Buyers may find opportunities in the current market with lower prices than in the previous two years, while sellers may need to adjust their expectations given the more balanced market conditions.​