Austin Market Update: New Listings Surge by 10.2% in March, Home Prices Hold Firm

In March, new home listings across the Austin-Round Rock-Georgetown MSA jumped to 4,714, which is 10.2% more than March 2023, leading to multiple markets reaching four months of inventory, according to the latest Central Texas Housing Report released by Unlock MLS. However, home prices across most counties held firm. The City of Austin was up 2.7%, Bastrop increased 2%, while Travis broke even with no change. Williamson was down 1.6%, and Hays county was down 1%.

This trend continues in line with most evaluations of the Austin real estate forecast, showing a more stable 5% increase or decrease over the coming years. However, keeping an eye on the current interest rate will still be paramount. If we see a dip or an increase in interest rates, Austin will be affected, providing opportunities to buyers or sellers depending on the shift.

Selling Insights: With Austin Inventory Surge, Strategic Listing Enhancements Key for Success

I’m going to double down on my previous article where I discussed the importance of thoroughly enhancing, repairing, and staging your listing before entering the market. With a 10.2% increase in listings from March 2023 of last year, competition continues to grow. This means standing out and minimizing issues is extremely important.

On the positive side, it is certainly worth noting that most counties' median sales prices stayed fairly flat. Prices have leveled, and buyers are not feeling shy to enter the market. For sellers, with a little increased patience in sales time, proper repairs and renovations, and an accurate list price, success is likely.

Tip: We still continue to see multiple offers on some properties that are priced and staged well.

Buying Insights: Austin Market Offers Opportunities, Buyers Advised to Act Strategically

While buyers still have negotiating power in many buying circumstances, this isn’t always the case. With prices holding steady across most of Austin and surrounding counties, we are noticing that the most favorable and best-priced properties are capturing the attention of more buyers. If you’re looking for a deal, we recommend either keeping a close eye on the market and trying to snap up a property mid-week or negotiating favorably on a listing that has been on the market for an extended period and may need renovations or repairs.

On the positive side, there is far more inventory available than a year ago, offering a much wider selection to choose from. However, in March 2024, prices held steady across most counties, showing signs that Austin is stabilizing. Also, be sure to keep an eye on those interest rates. Any reduction and the market should continue to accelerate. Any increase, and things may slow down again.

Investing Insights: Neighboring Cities Offer Prime Opportunities for Investors Amid Austin's Rise

Our investment write-up from February still holds true. Neighboring cities offer prime opportunities for residential investors. With Austin's rise as a top U.S. city, surrounding areas remain both popular and more affordable. Properties in these areas should yield a steadier rental income and show stable value trends, especially for homes priced around $300,000. Affordable housing in this price range continues to be difficult to find.

Additionally, commercial properties between Austin and smaller cities can be solid investments. As these areas grow, so does the infrastructure, improving commuting for both business and leisure, and boosting commercial property value. Look for the roads that connect smaller towns and cities exiting/entering Austin to continue to flourish.

All data for this article can also be found here: https://www.abor.com/news-center/market-stats