Austin Housing Update - how the eastern European conflict impacting our local market
Strong February, Market Poised for a Big Year.
Mark Sprague, state director of information capital at Independence Title, explained how the recent global unrest might impact housing affordability and the economy both nationally and locally.
“The uncertainty in eastern Europe has stalled rising interest rates and contributed to keeping mortgage rates domestically below 4%, which is historically low. Ultimately, however, the already accelerated rate of inflation is expected to rise even further—hurting renters, buyers and builders who continue to grapple with fast-rising construction costs.”
Sprague added that the conflict in eastern Europe will ultimately have an impact on the construction supply chain, as Ukraine sits on several material reserves such as iron ore, but notes it’s better to be in Texas than anywhere else.
“Material and labor costs are on pace to rise from 4% to 5% monthly through 2023 and potentially further. Although the possibility that housing inventory will continue to fall is now even more likely, strong housing demand and Austin’s diverse economy will ensure the housing market’s economic impact remains steady. This places our region in a better place than most globally.”
Median Sales Price increased 27.9% to $499,995
Median Sales Price
Months of Supply
Average Days on Market