The 30-year fixed mortgage averaged 7.07% in August 2023, the highest monthly average in this series so far. Homes took a median of 55 days to sell. Active inventory stood at 9,742 listings, down 6.8% year over year. That made it a roughly balanced market.
Austin market statistics, August 2023
| Metric | August 2023 |
|---|---|
| Median sale price | $470,000 (-8.6% YoY) |
| Median price per sq ft | $230 (-9.8% YoY) |
| Homes sold | 2,622 (+2.3% YoY) |
| New listings | 3,266 |
| Active inventory | 9,742 (-6.8% YoY) |
| Months of supply | 3.7 |
| Median days on market | 55 |
| Sale-to-list ratio | 97.6% |
| Sold above asking | 14.2% |
| Listings with a price cut | 40.2% |
| 30-year fixed rate (avg) | 7.07% |
Foundations, Drought, and Texas Clay
Rates crossed 7.2%. And in a drought summer, the thing worth knowing about Austin houses: much of the region sits on expansive clay that shrinks when dry and swells when wet, which moves foundations. Watering your foundation during drought is a real and recommended practice here. A structural engineer costs a few hundred dollars and is worth it on any slab house over thirty years old.
What changed since July 2023
The median rose $695 from July 2023, a 0.1% move. Time on market lengthened by 6 days, to 55. Active inventory grew by 59 listings, to 9,742. The share of homes selling over asking gave up 1.7 points, to 14.2%.
One month is noise. The reason to read it anyway is that direction shows up in inventory and days on market well before it shows up in price, so the months where those two disagree with the headline number are the interesting ones.
Where this month sits in the cycle
| August 2023 | July 2023 | August 2022 | Since Oct 2016 | |
|---|---|---|---|---|
| Median sale price | $470,000 | $469,305 | $513,983 | range $255,626–$565,000 |
| Median days on market | 55 | 49 | 40 | range 16–85 |
| Active inventory | 9,742 | 9,683 | 10,455 | range 2,660–10,647 |
| Months of supply | 3.7 | 3.8 | 4.1 | range 0.9–5.4 |
| Sold above asking | 14% | 16% | 27% | range 10%–75% |
| 30-year fixed rate | 7.07% | 6.84% | 5.22% | highest since Oct 2016 |
The right-hand column is the range this series has covered since October 2016. No forecast in it, just where August 2023 falls against every month that came before it.
If you are buying in Austin right now
3.7 months of supply is close to balance. You can inspect properly, ask for repairs, and walk away from a house that does not work, three things that were not available to Austin buyers between 2020 and mid-2022.
The average home sold for 97.6% of asking, so roughly 2.4% under list was the normal outcome, not an insulting one.
The payment math. At $470,000 with 20% down at 7.07%, principal and interest runs about $2,519 a month. Add roughly $783 for property taxes and $313 for insurance and you are near $3,616 a month all in. Texas has no state income tax and this is where the state collects instead, budget the tax line from day one, not as an afterthought.
If you are selling: 55 median days on market means your first two weeks decide the outcome. Price to the last ninety days of closed comps, not to what your neighbor listed at and did not sell. Condition and photography are doing more work now than they were two years ago.
Neighborhood in focus
Westlake (78746). Rollingwood, Lost Creek, Rob Roy. Known for eanes ISD, Hill Country views, luxury. It fits families prioritizing schools, and runs $800K to $5M+.
The metro numbers above are an average of a very unequal city, Westlake does not move in lockstep with Kyle or Leander, and the gap between ZIPs widens in exactly the months the metro looks calm. There is a longer, more honest write-up at /neighborhoods/westlake/, including what is wrong with it.
On in Austin, August 2023
| When | What | Why it matters to a listing |
|---|---|---|
| Late August | Bat Fest, Congress Avenue Bridge | The Congress Avenue Bridge closes for the evening. A reminder that August in Austin is the month buyers stop touring and start waiting for October. |
What is coming next
Proposition 4 on November 7. A federal antitrust trial over real estate commissions begins October 16 in Missouri.
Common questions
Are Austin home prices going up or down?
Down 8.6% year over year as of August 2023. Against the April 2022 peak of $565,000, the metro median is 16.8% lower. Which number matters to you depends on when you bought.
Should I buy in Austin or in the suburbs?
The honest trade: Round Rock, Cedar Park, Leander, Pflugerville, Georgetown, Kyle and Buda will get you meaningfully more square footage and, in Round Rock ISD, Leander ISD and Lake Travis ISD, schools that rate as well or better than most Austin ISD zones. What you give up is proximity, and in Austin proximity is the scarce good. The drive from Leander to downtown at 8am is not the drive you tested on a Sunday. Check the MUD rate before you compare prices; a suburban house can carry a higher monthly cost than a more expensive central one.
What is a MUD district and why does it matter?
A Municipal Utility District is a taxing entity that finances water, sewer and drainage infrastructure in developments outside city utility service: common in Leander, Kyle, Buda, Manor and parts of Pflugerville and Dripping Springs. It levies its own rate on top of city, county and school, and can add a full percentage point or more to your effective tax rate. MUD rates typically decline as the district's debt is paid down, but that takes decades. It is the most common surprise in a suburban Central Texas closing, and it is disclosed, read the MUD notice.
How long are homes taking to sell in Austin?
A median of 55 days in August 2023. That is the number to watch if you only watch one, days on market turns before price does, in both directions. For reference, since October 2016 this measure has ranged from 16 days in May 2016 to 85 in February 2023.
Part of a retrospective series on the Austin market, one post per month since 2016, compiled from the historical record. This edition covers August 2023; every figure is as reported for that month, and nothing in it looks past it.
Source: Redfin Data Center metro market tracker: single-family, Austin-Round Rock-San Marcos metro, not seasonally adjusted. Mortgage rates are the monthly average of the Freddie Mac Primary Mortgage Market Survey 30-year fixed rate. Payment, tax and insurance figures are estimates for illustration and are not a quote. Median sale price is not a guarantee of value for any specific property.
Written by Mike Vilece, a licensed Texas real estate agent with Compass in Austin. If you want the version of this that applies to your street and your budget, ask me directly.