Report: Austin home prices cooling the fastest in the US

AUSTIN (KXAN) — A new report shows housing prices in Austin are cooling off the fastest this year compared to other cities that boomed during the pandemic.

The latest data shared Monday from real estate company Redfin showed Austin’s median price per square foot went up 1.3% year-over-year in October. Despite that slight increase, it’s still 23 percentage points lower than what Redfin reported in February earlier this year. That difference makes it the biggest drop in home-price growth over other American cities like Phoenix, Arizona; San Jose, California; Las Vegas, Nevada, and Boise, Idaho.

Sheharyar Bokhari, Redfin’s senior economist, explained in a news release why this may be happening here.

“The forces slowing the housing market, such as high mortgage rates, are having an outsized impact on places like Austin and Boise that saw home prices skyrocket over the last few years,” Bokhari said in a statement. “Home prices can only rise by double digits for so long before the growth becomes unsustainable. High rates and stumbling tech stocks are making it unsustainable quite quickly, especially in destinations popular with tech workers. Plus, many of the out-of-towners with big budgets who wanted to move into those places already have.”

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