It's been a long-established trend that Austinites will relocate to a much more affordable part of town, even if it means sacrificing shorter work commutes and coveted Austin zip codes. The latest real estate report from Unlock MLS and the Austin Board of Realtors (ABoR) shows home sales have dropped in the Austin-Round Rock-San Marcos MSA, but are on a steady rise in neighboring Central Texas counties.

Residential home sales fell 3.5 percent year-over-year from July 2023, totalling 2,652 closed sales in the Austin-Round Rock-San Marcos MSA. Median prices have plateaued at $450,000 for the second consecutive month. With more than 3,800 new home listings added — a 0.3 percent drop from this time last year — the total number of active home listings saw a 20.3 percent increase to 12,661.

Unlock MLS and ABoR housing economist Clare Knapp, Ph.D. said more first-time homebuyers are taking initiative to purchase a home in Central Texas in 2024 compared to 2023. However, high mortgage rates are still a major obstacle faced by buyers.

"With rates around 6.5 percent, 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," Knapp said. "Home prices across the market still need to decrease to meet market conditions and meet buyers where their purchasing power is currently."

Central Texas' housing economy is getting a big boost thanks to "ample housing inventory and more affordably priced housing options" which are contributing to rising sales in nearby Williamson, Hays, Bastrop, and Caldwell counties, according to 2024 ABoR and Unlock MLS president Kent Redding.

"This [trend] demonstrates that when a home is priced right, buyers are ready to make a move," Redding said. "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."

Redding continued, "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.”

Central Texas housing trends in July 2024

In Travis County, 1,155 homes were sold last month, in a near 12 percent decline from last year. Median prices increased slightly from June to $525,000. Active home listings continued growing to 6,264 homes, which is 22.1 percent more year-over-year.

Over in Williamson County, only 943 homes were sold in July, with median prices steadily dropping to $428,500. There were 1,263 new home listings on the market in a slight 2.4 percent increase from July 2023, bringing the total number of active home listings to 3,607.

Residential home sales rose by 4.5 percent in Hays County in July, totaling 401 sales. Median prices slipped 3.6 percent year-over-year to $385,500. Active listings rose 20.7 percent year-over-year to 1,889 homes with the addition of 549 new listings on the market.

Meanwhile, 116 homes were sold in Bastrop County last month, which is almost five percent more than this time last year. Median prices fell 6.5 percent year-over-year to $343,745. There were 652 active listings on the market in July (only 19 more than June), and 273 new home listings, representing a 2.4 percent increase in new inventory when compared to last year.

A mere 36 homes were sold in Caldwell County in July – 21 fewer sales than in June – but sales still technically increased by 12.5 percent year-over-year from July 2023. Median prices fell to $291,000, which was a 2.4 percent decrease from last year. There were 149 active homes on the market last month, and 56 new homes added on the market.