The Austin real estate market sees an increase in its home listings in 2024

The real estate market remains quite unpredictable in the United States, and the State of Texas and the city of Austin are no exception, which is why the dream of buying a house for the first time or finally acquiring the desired home may not come true for many in 2024, especially due to high interest rates that lead to a greater number of foreclosures, the many layoffs occurring in the technology industry, and the growing migration affecting the city of Austin.

Clare Knapp, a real estate agent with ABoR, the Austin Board of Realtors, stated that there is an increase in home listings this year compared to the previous year. However, this increase might not be solely attributed to recent job losses but also to the growing supply of homes, which is beneficial from the perspective of more options for buyers, though not so much for those looking to sell their property. “They are dealing with a market where buyer affordability is still reduced, lower than before the pandemic or even during its peak,” Knapp said.

What is driving the decrease in home prices in Austin?

The real estate market in the city of Austin is usually quite expensive, but thanks to the large supply of homes currently available, prices are seeing a slight reduction. This happens as more sellers try to make their homes more affordable and attractive to first-time buyers, Knapp explains.

ABoR observed an increase in new properties for sale in the Austin Metropolitan Statistical Area, within two price ranges: homes under $300,000 and those valued at a million or more. Knapp mentioned that this is because some people are eager to move into homes now instead of waiting for mortgage rates to drop, perhaps believing that these high mortgage rates will not decrease and will instead remain over time.

Where are people moving to in Austin?

Knapp noted that more first-time buyers are moving south of Austin, to places like Buda, Kyle, and San Marcos, as lower-priced homes under $300,000 were mainly found in the outlying counties near Hays County, which has experienced a notable increase in properties for sale.

In the Austin real estate market, several factors are altering the game for buyers and sellers, including lower affordability for buyers, home prices, and high mortgage rates. Sellers, on the other hand, face not only more competition as buyers have more options but also more sellers in the area than before.

Foreclosures available:

Austin: 150 homes available.

Buda: 20 homes available.

Kyle: 25 homes available.

San Marcos: 30 homes available.

By Elias DaSilva | October 2, 2024