Austin Homeowners See 79% of 2022 Purchases Slip Underwater as Prices Drop Nearly 25%
Updated
Updated · Business Insider · Aug 5
Austin Homeowners See 79% of 2022 Purchases Slip Underwater as Prices Drop Nearly 25%
1 articles · Updated · Business Insider · Aug 5
Summary
A Realtor.com analysis found 79% of Austin-area homes bought in 2022 are now worth less than their purchase price, leaving many owners facing steep losses if they sell.
Nearly 25% asking-price declines since spring 2022 reflect a flood of new supply, weaker migration and a sharp mortgage-rate jump that cooled demand just as builders delivered more homes.
About 12,700 homes were on the Austin market in July versus roughly 8,000 in 2019, while soft rents and builder incentives such as rate buydowns made resale homes harder to move.
Some sellers are now listing homes for rent as well as for sale, but examples in the report show likely losses ranging from $30,000 to roughly 30% for owners who need to exit.
Austin agents and economists say better neighborhoods still draw bids and pending sales rose 11% in June, suggesting stabilization even as the metro remains one of the sharpest pandemic-era reversals.