Why are the values of homes in Austin decreasing? I thought there was a shortage of homes..just trying to understand how these are going down vs going up in other areas?

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People moved there because it was cheap but now it’s expensive with terrible quality of life and it is more dangerous than every California city and every city on the east coast.

In fact, every Texas city is more dangerous than Los Angeles, San Francisco, DC, and Chicago. The only cities in America more dangerous are in Florida

Austin has some of Americas worst infant mortality rates because healthcare for women is basically non existent because doctors are terrified of being arrested under new laws. There’s no social safety net so poverty is insane.

And that’s just the beginning. Once you consider a lack of job opportunities, you see why people are fleeing back to economic hubs with high quality of life

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More dangerous than EVERY California city and EVERY city on the east coast? Not true. My sister lives in the Bay Area. As someone who has visited LA, SF, Oakland, Dallas, Houston and Austin within the last year, there is no way Austin is more dangerous than Oakland, SF or LA. Also, it can’t be more dangerous than Baltimore, DC or Philadelphia. I lived in Chicago 3 years ago and I can tell you that Austin is much safer overall. And EVERY Texas city isn’t more dangerous than LA, SF, DC, Chicago. I’ve visited LA, SF, DC, in the last year (and have friends and family living in all of these cities) and I listen to the news as well so these statements you’re making can’t be true. I agree with you about the other reasons such as lack of quality healthcare.

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Too many moved from SF and made it less desirable

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https://www.investopedia.com/30-year-mortgage-rates-rise-to-yet-another-historic-high-8347456

I know interest rates are higher, but that's everywhere and prices in other states are either staying the same or slightly increasing, but in Austin they are decreasing - that's what I'm trying to understand.

Real estate values are highly dependent on the location. You can have home values crashing on SF and rising in New York.

From what I’ve heard, Austin was building a lot of new homes. Neighborhoods at a time. So they actually have a high supply of homes.

Because clearly common sense isn’t common.

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Probably because they got overpriced during the pandemic and now the surrounding areas of Austin are growing so they have more options.

Austin prices soared in 2020-2021. Tech companies opened and expanded there. Then tech companies found they had too many employees and cut back. Additionally builders jumped in and built houses in places where they could make money. And interest rates are high. All in results in some pull back of prices in a city where the demand is falling and supply rising.

Examples?

I’ve heard that properties close to downtown are still being priced at a premium, while properties in the far out burbs are dropping because traffic is so bad

There’s not a shortage of homes in Austin. FAR from it. There’s so much new construction sitting inventory that builders can’t move. Those are going before a lot of regular seller inventory because of the insane concessions that builders are offering as incentives.

The decrease is only in comparison to the insanely steep markup that happened here during COVID, with low inventory, high buyer demand, and historically minimal interest rates. So really, prices are returning to a more normalized appreciation level instead of the high multipliers that a swirl of factors and sudden increases demand created. I’m a local lender here based here in Austin and happy to chat more with you! Send me a message.

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