July 18, 2023 | Driving It Home with ABoR's Housing Economist

The June housing statistics depict a relatively robust market despite a continued uptick in mortgage rates. (The average mortgage rate measured 6.71% in June, up from 6.43% in May). The median sales price declined 9.7% from last June to $483,000 but rose modestly 2.7% on a seasonally adjusted basis from May. Meanwhile, the uptick in mortgage rates prompted a decline in closed sales—down nearly 9% from last June and 13% from May. Months inventory—3.7 months—indicates a more balanced market in which the supply of homes for sale is more commensurate with the demand for homes. Pending sales ticked up a considerable 18.5% from last June, signaling that buyers have become more accustomed to the higher rate environment. However, the modest increase in pending sales on a month-over-month basis of 0.5% indicates that the recent uptick in rates may continue to pose a constraint on sales activity. Sales and leasing activity increased considerably on a week-over-week basis as activity commenced after the Independence Day holiday. In the Austin MSA, closed sales rose 34%; pending sales, 21%. Meanwhile, closed leases increased nearly 33% and pending leases, 24%. New listings for homes for sale increased nearly 42%, while new listings for leases ticked up nearly 11%. Activity over the next few weeks may fluctuate modestly as the summer holiday season continues. Don't forget that Dr. Losey will present the Buy vs. Rent Index at the upcoming Central Texas Housing Summit on July 26. Don't miss it–save your spot here: https://www.abor.com/housingsummit Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/2023/07/DIH-7-18-2023.pdf Connect with us on socials: https://www.abor.com/socials Connect with Dr. Clare Losey on LinkedIn: https://www.linkedin.com/in/clare-losey