Austin, Texas, was recently ranked as the “No. 4 Buyers’ Market” in the United States, confirming what we already knew–that Austin is the ideal place to move to in 2023. With its incredible economic opportunities, low cost of living, and vibrant culture, Austin has so much to offer its residents. Now that Austin is ranked as one of the best markets for buyers in the nation, there’s no doubt that 2023 is the year to buy a new construction home in Austin!
How the Ranking Is Calculated
Austin’s ranking as the country's fourth best buyers’ market is based on results from the Buyer-Seller Market Index created by Knock, a home financing technology company. This index uses various metrics to analyze and rank the 100 largest real estate markets in the U.S. according to their favorability for home buyers and sellers. Home inventory levels, median days on the market, median sale price, and average sale-to-asking price are some of the metrics used to calculate these rankings. Knock’s findings indicate that 26 markets in the U.S. will turn into buyers' markets by October 2023, and Austin is fourth on that list.
The Austin Housing Market
Like many other U.S. cities, the Austin housing market experienced a buying frenzy in 2021-22. During this time, home prices skyrocketed as housing inventory fell way short of demand. Buyers were scrambling to put in offers and often found themselves in bidding wars that forced them to pay well above the asking price for a home. There are many stories that paint a picture of just how crazy the Austin market was, including a line all the way down the street to view an open house in Central Austin, a home in Brushy Creek receiving 96 offers in one weekend, and a home in East Austin selling for $850,000 above the asking price.
But the market has slowed down significantly over the last several months, bringing it back to a more normal pace toward the end of 2022. The latest report from the Austin Board of Realtors indicates that active listings have increased by a whopping 162% in Austin, with the market now having its highest number of active listings since July 2011. Austin homes are now spending an average of 40 days on the market, compared to 15 in July 2021. And they are being sold for an average of 95% of their list price, compared to an average of 105.1% in 2021. These trends are also reflected in the new construction housing market.
Experts view this slowdown in the Austin market as a “return to normal” rather than a crash as many people expected. As this downward trend continues, the Austin market will swing toward favoring buyers, giving Austin homebuyers more options and more leverage than ever before.
Why a New Construction Home Is the Best Choice in Austin
If you’re considering buying a home in Austin, a new construction is the way to go. Right now, Austin builders have an excess supply of brand-new homes, and they’re giving away great deals and incentives to entice buyers. Furthermore, new construction homes in Austin offer better value for money than resale homes since they’re in pristine condition and are more likely to hold value over time.
When you’re ready to start looking for your new construction home in Austin, NewHomesMate is here to help. We’ve teamed up with the best home builders in the city to offer an industry-leading search platform that allows you to view and compare all the new construction homes and communities available on the market today. On our platform, you can also schedule in-person and virtual tours of new homes and communities and get access to local agents who are experts in the new construction housing market.
Start searching for your new construction home today and turn your dream of owning a new home in Austin into a reality with NewHomesMate!