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Texas homebuyers and sellers dish on why they're making moves

Finding the right home is the hardest part.

Photo by Phillip Spears/Getty Images

What's the hardest part of the homebuying process? Finding the right place to call home, according to the 2019 edition of the Texas Realtors' Texas Homebuyers and Sellers Report.

Fifty-one percent of Texas homebuyers expressed that sentiment, according to the report, which details information about the folks buying and selling across the Lone Star State.

The annual survey reveals motivations for buying and selling, how long residents plan to stay in their new digs, how much they'll make when they sell, and more. Here's a snapshot of Texas homebuyers and sellers right now:

The homebuyer
In 2018, the median age of Texas homebuyers was 47. They had a $101,700 median household income, and 32 percent of them were buying for the first time, according to the report. The average homebuyer looked at 10 homes in just as many weeks before finding the right one, and they’re expected to stay put for 12 years.

Most homebuyers were white (74 percent to be exact); 13 percent were Hispanic, 7 percent were black, 4 percent were Asian or Pacific Islander, and 3 percent were categorized as “other.” Homebuyers’ ages were also diverse. The largest age group was 25-34 years old (23 percent of buyers), followed by 35-44 and 75 or older, both at 19 percent.

The reasons for buying a new or previously owned home also varied. Motivations for buying a new home in Texas included avoiding renovation costs and issues with electricity or plumbing, amenities in communities, ability to customize the home, and energy efficiency. Other buyers went with a previously owned home because they thought it had a better overall value, better price, and more charm.

The home seller
On the flip side, the median age of Texas home sellers in 2018 was 56, about 10 years older than that of the buyer, and 26 percent were first-time sellers, according to the report. After spending 10 years in their home, the average seller’s house spent only four weeks on the market. And when they sold, they made a nice chunk of change — the median sell price was $70,000 over the purchase price.

The top five reasons Texans put their homes on the market? Wanting to be closer to friends and family, job relocation, moving closer to current job, change in family situation, and retirement.

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Homebuyers can afford to be picky as Austin housing inventory rises

Photo by Avinash Kumar on Unsplash

Housing economist Clare Losey said the most significant factor affecting home sales in Austin is high mortgage rates.

The latest real estate report from Unlock MLS and the Austin Board of Realtors (ABoR) has revealed housing inventory is still on a steady rise in the Austin-Round Rock-San Marcos MSA, creating more choices for potential homebuyers as they navigate a high interest rate market.

Residential home sales dipped by a mere 1.5 percent year-over-year from October 2023, amounting to 2,248 closed sales in the Austin-Round Rock-San Marcos MSA. Median prices have also dropped to $430,000, or 3.2 percent less than this time last year. More than 3,300 new home listings were added on the market — a 7.4 percent increase from 2023 — bringing the total number of active home listings to 11,599.

According to Unlock MLS and ABoR housing economist Clare Losey, Ph.D., October's mortgage rates stood at 6.4 percent and are showing no signs of a significant drop in the near future. Even heading into 2025, Losey says potential homebuyers who are biding their time in the hopes of seeing rates plummet "may be in for a long wait."

"In the meantime, sellers must recognize that bringing buyers to the table requires a more aggressive pricing approach," Losey said. "Even in a more balanced market, buyers with limited purchasing power are struggling to meet current price expectations."

As for the overall health of the Central Texas housing market, 2024 Unlock MLS and ABoR president Kent Redding labeled recent news reports that called Austin "ground zero" for a downturn as an "extreme over-exaggeration."

"Austin led the state and nation in record-breaking home price growth and sales activity during the pandemic," Redding said. "For three years, near-zero housing inventory, numerous offers above list price and a rapid-paced market raised home prices and left little negotiating power for buyers. During this record-setting growth, ABoR and Unlock MLS consistently emphasized the unsustainability of the rapid growth, and now, our market is working to balance those extremes."

Central Texas housing trends in October 2024

In Travis County, 979 homes were sold last month — a slight 2.5 percent increase from last year. Median prices remained flat year-over-year at $510,000. Active home listings continued growing to 5,702 homes, which is 9.4 percent more year-over-year.

In Williamson County, 807 homes were sold in October, with median prices steadily dropping to $420,000. There were 1,028 new home listings on the market, showing a 4.5 percent increase from October 2023, bringing the total number of active home listings to 3,369.

Residential home sales dropped by nearly eight percent in Hays County in October, totaling 315 sales. Median prices also fell 5.5 percent year-over-year to $359,000. Active listings rose 6.6 percent year-over-year to 1,740 homes with the addition of 534 new listings on the market.

Meanwhile, 114 homes were sold in Bastrop County last month, which is 4.4 percent more than this time last year. Median prices dropped by a single percentage point year-over-year to $355,000. There were 654 active listings on the market in October, and 152 new home listings, representing a 1.3 percent slip in new inventory when compared to last year.

Only 33 homes were sold in Caldwell County in October to reflect a near 14 percent decline year-over-year from October 2023. Median prices fell to $262,990, which was a 13.5 percent decrease from last year. There were 136 active homes on the market last month, and 40 new homes added on the market.

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