Austin’s Real Estate Scene Set for Exciting Changes in 2025!
Hey there, Austin residents and potential homebuyers! Are you dusting off those online home shopping daydreams? Well, you might just get your chance to turn those dreams into reality come 2025! According to a recent report from Zillow, next year is looking promising for the Austin real estate market, as it hints at improving mortgage rates and some gentle shifts in home prices.
What’s Happening with Mortgage Rates?
Ready for some good news? Zillow’s housing market predictions indicate that in 2025, we can expect a gradual but bumpy decline in mortgage rates. Yep, those pesky rates have been making headlines for their erratic behavior throughout 2024, and it seems they will keep impacting the market for a bit longer. However, this is a positive curveball for buyers. Zillow estimates that there will be around 100,000 more home sales in 2025 than in 2024!
What About Home Prices?
As for home values, Zillow anticipates a low and slow growth of about 2.2%. In local news, our beloved Austin has seen a 3.4 percent drop in home values from 2023 to 2024, with homes in the Austin metro averaging around $443,995 as of November. This figure slightly outpaces the Austin Board of Realtors’ median home sales price, which recently clocked in at $435,000—a year-over-year increase of 2.4%!
Timing Is Everything
Now, if you’re eyeing a home, consider shopping during the fall and winter months. These seasons typically see a lull in home sales, making it an ideal time for buyers. Zillow’s heat market index shows that, from October to November, there was a drop in competition across 36 out of the 50 largest U.S. metro areas. This could mean fantastic opportunities for buyers to negotiate a deal in Austin, where only 10.4 percent of homes sold for more than their listing price back in October.
As Zillow’s chief economist Skylar Olsen puts it, “Those shopping this winter have plenty of time to choose and a relatively strong position in negotiations.” So if you’ve been waiting for your moment, now might be it!
Austin: The Southwest’s Bright Spot for Homebuyers
As more buyers look toward the American Southwest, Austin and neighboring cities like San Antonio are being labeled as “buyer’s markets.” This means more negotiating power for you city slickers! However, it’s essential to keep an eye on those unpredictable falling mortgage rates, as a significant drop could bring more buyers flocking back, potentially tipping the scales back in sellers’ favor.
The Shift to Cozy Living
It seems the era of vast open plans is drifting away. Many buyers are now seeking out smaller, cozy homes, a trend that is on the rise. Listings are even beginning to feature the word “cozy” more than they did in 2023—up by a whopping 35 percent in 2024! Compact living spaces with unique styles are winning hearts.
Finding Affordability
Alright, let’s talk about something that’s on everyone’s mind: affordability. Struggling with high rent while trying to save for a house can feel daunting, but there are still some pockets in Austin where renters are catching a break. According to a study by CashNetUSA, the 78737 ZIP code tops the list for Austin renters, featuring an average monthly rent of only $1,870—which constitutes a mere 16.05% of the median income in that area.
The Bottom Line
As we move closer to 2025, it seems there are plenty of reasons to feel optimistic about the Austin real estate market. With favorable mortgage rates and an uptick in the number of homes being sold, those who have been waiting for the right moment may just find that moment around the corner. So keep your eye on the market, and don’t hesitate—your dream home might be waiting just for you!
