Home sales numbers in the Austin area.

Central Texas sees highest housing supply in 13 years, but challenges remain for buyers and sellers.

Austin, Texas — The Austin Board of Realtors' latest report indicates that the Central Texas housing supply reached its highest level in 13 years in May, offering potential buyers more options and negotiating power. Meanwhile, higher interest rates are pricing some buyers out of the market.

"This data demonstrates that buyers can continue to be more selective when searching for a home in their price range," said Clare Losey, an economist for the Austin Board of Realtors.

However, Losey also cautioned that higher interest rates have reduced purchasing power, creating a nuanced market that does not strongly favor either buyers or sellers.

• The Numbers:

• 4.9-month supply of homes in the Austin area in May (up from 4.5 months in April), per the Austin Board of Realtors.
• $459,450: Median price of homes sold in the five-county Austin region (down 0.4% year-over-year).
• 2,968 sales in the Austin region in May, a 12.8% decline year-over-year.
• 1,038 home sales in the City of Austin, an increase of 2.4% year-over-year.
• $608,438: Median closing price in Austin in May (up 11.6% year-over-year).

• Quotes:

"The current market is exceptionally challenging, and even industry experts find it difficult to predict trends. High-interest rates have significantly reduced buyer activity." — Keith Trigaci, Compass real estate agent.

"After several years of demand far exceeding supply, which resulted in huge increases in home prices, the Austin housing market is now in a correction phase... The spike in interest rates has resulted in some buyers no longer being able to afford a home." — Eldon Rude, housing market expert, 360° Real Estate Analytics.

"Buyers were freaking out, and sellers got multiple offers over the asking price... Price appreciation has slowed in Texas but should continue to go up just not as aggressively." — Mark Sprague, housing industry expert, Independence Title.

• What's Next:

Experts predict that home price appreciation will continue, albeit at a slower pace, due to strong job creation in Texas and ongoing demand from people relocating to the state. While the market has calmed and offers more choices, a crash in housing prices is unlikely due to sustained demand and inventory levels.