Hold onto your hats, Austin – the housing market saga just took another twist, and it’s not for the faint of heart. According to a tweet by @nickgerli1, despite a jaw-dropping 16% drop in home values from the mid-2022 peak, the reality check hits harder. Real estate in Austin is still playing in the expensive league, remaining a whopping 20% “overvalued” compared to long-term norms.
This overvaluation, akin to a ticking time bomb, suggests that Austin’s real estate isn’t out of the woods yet. Brace yourselves for further price declines as the market grapples with the aftermath of exploding inventory levels.
December 2023 saw the number of homes for sale skyrocket to 7,319, marking the highest level on record in the past 7 years. Austin, you’re breaking records, but not the kind anyone wants. The once hot market is now grappling with an oversupply, setting the stage for more price wallops.
The Austin, TX Housing Market is turning into a bloodbath.
Home Values already down -16% from their peak in mid-2022. 📉
Warning signal to rest of US Housing Market. Once inventory rises, all bets are off. pic.twitter.com/ojIGnovtov
— Nick Gerli (@nickgerli1) January 15, 2024