“After two years of unprecedented demand, activity and price increases, our housing market began to stabilize in 2022,” Ashley Jackson said. “Signs point to that trend continuing in 2023 even as interest rates fluctuate, so buyers need to date the rate and marry the house. Bidding wars have subdued as homes on average sold for only less than the original listing price in 2022, but as we head into what is normally a seasonal peak for sales, today will still be the most cost-effective time to buy a house. It is important to remember that we still have a desirable and sought-after market, it is just that now we are seeing our market return to a more normal level of high demand and activity than what we experienced in the years leading up to the COVID pandemic and subsequent boom in our market.”

Whether you are buying or selling, it is important to remember that "every time interest rates increase buyers lose 12% of their purchasing power. By this summer, if rates increase by one 1.5 basis points as expected, buyers will have 72% less buying power than they did at the beginning of 2022. With Austin’s unique attraction as a magnet for job creation, we should continue to expect employment growth for several years to come, which is positive. However, when combined with expected lower levels of inventory and higher interest rates, affordability concerns will continue to be a factor in real estate transactions at the micro and macro levels" Mark Sprague, state director of information capital for Independence Title, pointed out.