A recent housing market report released by the Austin Board of Realtors reveals that the city’s real estate market’s volume of sales has calmed since earlier this year, decreasing by 4.6%.

“Study says Austin is the second most overvalued housing market in the United States,” local realtor Heather Morrison stated in a tweet.

The study indicates the median home price remains at an all-time high, standing at an average of $470,000 in August, recorded around the same time the market increased by nearly 19%, reaching a $2.2 billion mark, a 35% increase from last year’s results in August.

Townhomes and condominiums in the area have increased by over 40% over the past year, and though the national average for permit applications decreased 31%; in comparison, single-family applications for new constructions have also skyrocketed in the area by 28%, KXAN reported. Market fluctuations are expected to continue.

“This is just a new normal, I don’t see the prices coming down. Austin is still an excellent real estate market,” says Gordon.

With the recent increase, monthly housing inventories have gone back to one month, marking the highest figure since October of last year, according to the board’s report. Based on the figures, economist Mark Sprague says the market is “exactly where it should be” now.

The board's director, Susan Hortan, added: “While it wouldn’t be appropriate to say market conditions are normalizing – inventory is still at an all-time low and homes are still selling as soon as they hit the market – August’s housing activity is closer to what we would typically experience in the fall."