Austin Housing Market: Rising Inventory and Decreased Prices Amidst High Mortgage Rates

Austin’s Housing Market: Trends and Insights You Need to Know

Hey there, Austin homeowners and hopeful buyers! If you’ve been keeping an eye on the real estate scene in our vibrant city, you might have noticed a few changes lately. Let’s break down the latest happenings, shall we?

Mortgage Rates Still a Factor

According to housing economist Clare Losey, high mortgage rates have been the biggest player impacting home sales in Austin. With rates hovering around 6.4% in October, many potential buyers are taking a step back, hoping for them to drop significantly. But brace yourself; 2025 might come around, and those wishing for lower rates could be in for a long wait, as Losey puts it. So, what does that mean for folks looking to buy or sell?

A Growing Selection for Buyers

Despite the challenging interest rate environment, there’s good news for homebuyers: inventory levels in the Austin-Round Rock-San Marcos area are on the rise! The latest report from Unlock MLS and the Austin Board of Realtors shows that there are currently 11,599 active home listings, thanks to more than 3,300 new listings added, making it a 7.4% increase from last year. That means more choices as potential homeowners navigate the current market!

Sales and Prices Dip Slightly

As for closed residential sales in October, there were 2,248 homes sold, reflecting a slight 1.5% decrease from the previous year. Interestingly, median prices have dropped to $430,000, which is a 3.2% decrease compared to this time last year. So, while the market is softening somewhat, it’s still busy!

A Closer Look at the Neighborhoods

Let’s zoom in a bit closer. In Travis County, 979 homes were sold, which is a 2.5% year-over-year increase. The median price here remained steady at $510,000. That’s promising! Meanwhile, Williamson County saw 807 homes sold, with median prices dipping to $420,000. The inventory is also growing with 1,028 new listings.

Over in Hays County, residential sales took a hit, with 315 homes sold reflecting nearly an 8% drop. The median price also fell to $359,000, though active listings grew by 6.6%. And let’s not forget Bastrop County, where sales were up by 4.4% at 114 homes, though the median price took a slight dip to $355,000.

The Big Picture

While some reports characterize Austin as “ground zero” for a housing downturn, experts like Kent Redding of ABoR emphasize the balance our market is trying to achieve. Redding notes how Austin experienced soaring prices during the pandemic, which simply wasn’t sustainable in the long term. Now, with more listings and a calmer market, buyers and sellers can negotiate better.

Affordable Housing Efforts

On a bright note, affordable housing is making strides in South Austin! The new Parker Lane Apartments are officially open and ready to welcome residents. With rent prices starting as low as $600, this place aims to ease the housing crunch in our lovely city. The community offers green features, a healthy food pantry, and an on-site learning center, making it a fantastic option for families!

So there you have it, Austin! As we move further into 2024, it will be interesting to see how the market evolves with inventory on the rise and interest rates continuing to challenge buyers. Whether you’re on the side of buying or selling, staying informed will be your best asset!