Half the homes that sold across the Austin metro in May 2023 went for more than $470,000, and half for less, down 16.1% year over year. The share selling above asking was 18%. The median sat 16.8% below the April 2022 peak of $565,000. That made it a market tilted to sellers.
Austin market statistics, May 2023
| Metric | May 2023 |
|---|---|
| Median sale price | $470,000 (-16.1% YoY) |
| Median price per sq ft | $231 (-17.3% YoY) |
| Homes sold | 3,075 (-1.8% YoY) |
| New listings | 3,758 |
| Active inventory | 9,356 (+42.1% YoY) |
| Months of supply | 3 |
| Median days on market | 49 |
| Sale-to-list ratio | 97.7% |
| Sold above asking | 18.0% |
| Listings with a price cut | 36.3% |
| 30-year fixed rate (avg) | 6.42% |
Volume Comes Back Before Price Does
Proposition A on police oversight passed May 6. In the market: 3,075 sales, the highest monthly volume in a year, at a median of $470,000. Volume returning before price does is the normal shape of a bottom. It is not proof of one, but it is the first thing you would want to see.
What changed since April 2023
The median fell $4,103 from April 2023, a 0.9% move. Time on market shortened by 3 days, to 49. Active inventory grew by 400 listings, to 9,356. The share of homes selling over asking gained 0.5 points, to 18.0%.
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
| May 2023 | April 2023 | May 2022 | Since Oct 2016 | |
|---|---|---|---|---|
| Median sale price | $470,000 | $474,103 | $560,000 | range $255,626–$565,000 |
| Median days on market | 49 | 52 | 26 | range 16–85 |
| Active inventory | 9,356 | 8,956 | 6,585 | range 2,660–10,647 |
| Months of supply | 3 | 3.9 | 2.1 | range 0.9–5.4 |
| Sold above asking | 18% | 18% | 66% | range 10%–75% |
| 30-year fixed rate | 6.42% | 6.34% | 5.23% | range 2.68%–6.9% |
The right-hand column is the range this series has covered since October 2016. No forecast in it, just where May 2023 falls against every month that came before it.
If you are buying in Austin right now
At 3 months of supply, sellers still have the edge on the best listings and buyers have real leverage on everything else. The spread between those two groups is where the negotiation lives.
The average home sold for 97.7% of asking, so roughly 2.3% under list was the normal outcome, not an insulting one.
The payment math. At $470,000 with 20% down at 6.42%, principal and interest runs about $2,357 a month. Add roughly $783 for property taxes and $313 for insurance and you are near $3,453 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: 49 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
East Austin (78702). Holly, Rosewood. Known for creative, eclectic, strong appreciation. It fits buyers who want character and culture.
The metro numbers above are an average of a very unequal city, East Austin 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/east-austin/, including what is wrong with it.
On in Austin, May 2023
| When | What | Why it matters to a listing |
|---|---|---|
| May 6–7 | Pecan Street Festival (Spring), Sixth Street Historic District | Sixth Street closes to traffic for the weekend. Downtown and the eastern edge of 78701 are slow; everywhere else is unaffected. |
What is coming next
A property tax package in special session this summer, reportedly built around raising the homestead exemption.
Common questions
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 49 days in May 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.
What are the best neighborhoods in Austin for families?
It depends on what you are optimizing for, and anyone who answers without asking is selling you something. Broadly: Circle C, Steiner Ranch and Avery Ranch for space and schools; Mueller, Crestview and Brentwood for walkability with a yard; Westlake and West Lake Hills for Eanes ISD if the budget reaches; Hyde Park and Bryker Woods for older homes near central. There are honest write-ups of nine of these at theaustinlocalgroup.com/neighborhoods, including the parts that are not flattering.
Part of a retrospective series on the Austin market, one post per month since 2016, compiled from the historical record. This edition covers May 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.