US Home Prices See Rise, Texas Cities Experience A Drop
While the rest of the country struggles with escalating home prices, two Texas cities have entered a unique trend of declining housing prices. The recent COVID-19 pandemic brewed a storm of high mortgage rates and soaring home prices across the United States. With the shrinking pool of homebuyers, these costs are now retiring in popular cities, driving more buyers home.
Home Prices in Metro Areas: A General Overview
According to the National Association of Realtors, over 90% of homes in metro areas saw a rise in price during the first quarter of this year. However, a surprising 16 out of 221 metro regions saw a drop. Two Texas cities, San Antonio-New Braunfels and Austin-Round Rock, are on this exceptional list.
San Antonio-New Braunfels Metro Area Faces a Slump
The median home price in this area was $320,500 in Q1 of 2023. Fast forward a year later, the price has fallen by 4.6% to $305,800. The average listing period for homes in New Braunfels in April 2024 was 53 full days before purchase, compared to 49 days in the same period a year earlier.
Austin-Round Rock Metro Area Records Modest Dip
The Austin-Round Rock area saw a modest 0.3% drop in home prices. The median price last year was at $467,000, but now stands at $466,700. In April this year, homes in Austin lasted for an average of 40 days on the market before finding a buyer.
This trend contrasts with the tight market experienced from 2020 to 2022 featuring intense competition, bidding wars, and swift sales.
Nicole Marburger Speaks on The Changing Market
“Most homes are no longer selling within a matter of hours or days. Some might sell in two to three weeks, while for others, it could take two to three months — it all depends on the area a home is listed.”
Understanding The Price Decline in Texas
According to real estate agents in the cities, homes are becoming cheaper because fewer people are in the market to buy, and properties spend more time listed before being purchased. This has forced sellers to slice prices to allure buyers.
Fairly affordable living costs and tax-free personal earnings have made Texas an increasingly attractive option for out-of-state homebuyers, most noticeably from California. The lure of the Lone Star State has been amplified by growing job opportunities, increased remote working, and a flourishing tech industry.
The Role of Californians and Elon Musk
The largest group of newcomers to Texas comprises Californians, with Elon Musk, founder of Tesla and SpaceX, among the notable names to relocate. Musk cited a new public school policy as the impetus for his move to Starbase, Texas.
Texas Population Growth
Since 2000, Texas has seen steady population growth. Recent data reveals that eight Texas counties are on the list of the top ten fastest-growing counties in the US, emphasizing the growing appeal of this southern state.
