In July, the Austin-Round Rock-San Marcos MSA housing market experienced a 3.5% decrease in sales overall, with 2,652 closed listings. However, sales increased in Williamson, Hays, Bastrop and Caldwell counties as buyers continue to seek more affordable housing options, according to Unlock MLS’ July Central Texas Housing Report.
“Consistently high mortgage rates continue to impact buyer’s purchasing power, but July’s increase in sales in four of the five MSA counties shows the strength of Central Texas housing demand,” Clare Knapp, Ph.D, housing economist for Unlock MLS and the Austin Board of REALTORS®, said. “With rates around 6.5%, only about half of homeowners in our market can afford a median priced home and only about a quarter of renters can afford a starter home. Home prices across the market still need to decrease to meet market conditions and meet buyers where their purchasing power is currently. It is notable that we are seeing more first-time buyers willing to make a move this year compared to last, and that is a positive sign for our market.”
Kent Redding, 2024 ABoR and Unlock MLS president, highlighted the strength in outlying counties in the market.
“Buyers are taking advantage of ample housing inventory and more affordably priced housing options in the market outside of Travis County. This demonstrates that when a home is priced right, buyers are ready to make a move. Working with a REALTOR® is important to identify homes across the MSA that work for a prospective buyer’s budget, and for sellers, receiving expert counsel on the pricing dynamics in today’s higher rate environment. Current market conditions highlight the need for consistent passage of sustainable housing policies to increase inventory across all price points in Travis County, and ABoR will continue its advocacy work to ensure those policies are enacted to contribute to the health of the market in the near and long term.”
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