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ustin's housing market is experiencing a decline in home prices, with median list prices dropping by 4.9 percent from last year to $510,950, according to Realtor.com's July report. This marks the second consecutive month of price declines, following a surge of over 60 percent between February 2022 and May 2022.

    The city's housing market has been impacted by changing trends in remote work, with fewer people relocating to Austin due to employees being called back to the office and returning to their original home states. This, combined with increased construction in the area to meet former demand, has led to a perfect storm of problems causing declining home sales, property prices, and rents.

    Industry experts point out that Austin's market got severely out of whack following the pandemic, with prices rising much more than in other major Texas metros. The current price correction is seen as a rebalancing of the market to more sustainable levels.

    The Southern region saw year-over-year median listing prices fall by 0.3 percent, while inventory across the country rose 25.1 percent year over year, marking the 21st consecutive month of gains. Austin home sellers should anticipate continued downward pressure on prices, with buyers likely to take advantage of good deals.

    For buyers, patience is a strategy - rent short-term, watch how prices move, and buy when rates or prices become more favorable. The city's cooling market may stabilize in the long term but could also pressure developers and investors who expected continued rapid growth.