Austin seeing drop in new-home prices

AUSTIN – Local new-home prices are being significantly slashed, with some reductions up to 30 percent, according to Newsweek magazine.

The city experienced a steep home price drop of 10.2 percent from July 2022 to April 2023, contrasting with the national decline of only 1 percent.

The once hot sellers’ market has cooled, requiring sellers to lower prices to attract less enthusiastic buyers, a significant change from the high-demand, competitive bidding wars during the pandemic.

A reduction in remote workers moving to Austin and rising mortgage rates have decreased demand, contributing to the market cooldown.

While average home values have dropped, prices in some neighborhoods are recovering. The median sale price in May 2023 was $587,250, up 3.9 percent year-over-year, indicating some market stabilization.