Insights on Mortgage Rates, Home Prices, and Housing Demand
ATX real estate reamins locked in a Buyers Market in just about all cases. With mortgage rates recently trending lower, prospective buyers and sellers in neighborhoods like Zilker, East Austin, Travis Heights, Hyde Park, and Mueller should be more motivated than ever to lock in great prices and enjoy their relative strength in negotiations during this time. Yet the market remains slow as some Buyers think that rates will come back down below 5% and others still don’t fee that prices have fallen enough. That’s kind of shocking seeing the amount that prices have already adjusted over this past year, to the extent that many median prices in many submarkets are back to 2022 prices (at least for the homes that are selling).
Mortgage Rates and Buyer Activity
Last week, mortgage rates experienced a slight decline, a welcome change after months of increases. This dip has already started to re-energize buyers, as reflected in a 12% increase in purchase application submissions. If you’ve been considering buying a home in Austin, this shift could improve affordability in a competitive market.
Home Price Trends: Austin’s Perspective
In September, the FHFA House Price Index climbed 0.7% month-over-month, showcasing resilience in home values. While the national Case-Shiller Index reported a 0.2% decline in the same period, Austin remains a hot spot for home appreciation, thanks to steady demand and limited inventory in popular areas like South Congress and Cherrywood.
Market Activity and Job Growth
Austin’s strong economy, bolstered by major employers and tech giants, continues to attract buyers. Although pending home sales dropped 2.0% month-over-month in October, the city still outperforms expectations. Additionally, job growth in Austin has been a significant factor, creating opportunities for newcomers and driving housing demand across Travis County. As of the most recent data, the unemployment rate in Austin has stabilized at 3.4%, which remains below both the Texas state average of 3.9% and the national average of 3.8%. Job growth has seen an annualized increase of 1.9%, and average hourly earnings have risen by 3.7% year-over-year to $34.97, reflecting both a strong local economy and rising demand for skilled labor. However, some challenges remain, such as elevated layoff rates earlier in the year and a slight slowdown in the broader economic activity growth compared to previous months
Federal Reserve Bank of Dallas.
What’s Next for Buyers and Sellers in Austin?
While consumer spending decreased slightly and personal income rose, the stability in core inflation suggests a relatively balanced environment for the housing market. Whether you’re planning to list your property or searching for homes for sale in Austin, this may be the right moment to make your move.
Start Your Home Search Today Explore the latest homes for sale in Austin, TX, including listings in top neighborhoods like Zilker, Travis Heights, and East Austin. Browse available properties now and find your perfect home today!
If you’re thinking about Selling, get started here. Share your property info and I will follow up with a customized market analysis. https://craigsouzaaustin.com/sellers/
Sources: CMG HomeLoans, John Nagle; Dallas FED
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