soaring suburbs

Austin suburb's ZIP code stands out on new list of hottest U.S. housing markets in 2023

2016 Sydnee Drive, Leander home for sale, Austin home for sale

This cozy home in Leander's 78641 ZIP code is on the market for $369,000.

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Despite higher mortgage rates, Austin's housing market continued to attract more people to the suburbs in 2023, according to a new report by Opendoor. One Austin-area ZIP code in particular — in Leander — was one of the top 15 locales in the nation.

Leander's 78641 ZIP code earned No. 13 in the report, a four-place drop from No. 9 in 2022. Home values in 78641 have dropped by 11.1 percent over the last year, as estimated by fellow online real estate marketplace Zillow. Homes on the market in Leander are valued at $447,924 on average.

Overall, the report showed that people are increasingly interested in living outside of a major city, with preferences leaning toward the suburbs and exurbs (even farther from the city). Turnkey homes and affordable prices were among the top priorities for homebuyers in 2023, in addition to convenient locations, the study said.

"Homes purchased in our top neighborhoods reflect the desire of homeowners to head to towns with convenient amenities instead of the congestion of bigger cities," the report's author wrote. "Price also continues to be a major factor: Opendoor’s data shows buyers and sellers still believe the housing market is competitive, they’re concerned about interest rates, and they think homes are overpriced."

Texas ZIP codes dominated the top 10, with two Houston-area ZIP codes claiming the top two spots: 77433 in Cypress (No. 1) and 77493 in Katy (No. 2). Nine total Texas cities were recognized in the report, including 75126 in Forney (No. 6); 76227 in Aubrey (No. 7); 78130 in New Braunfels (No. 8); 78253 in San Antonio (No. 9); and 76179 in Fort Worth (No. 10).

The report also uncovered several under-the-radar neighborhoods where new listings increased throughout 2023. ZIP code 78654 in Marble Falls, a Hill Country city about 50 miles northwest of Austin, ranked No. 5 among Opendoor's "hidden gems" list.

About 30 miles north of San Antonio, Bulverde's 78163 ZIP code ranked the No. 8 best overall "hidden gem" housing market.

"Newly built homes, like many in these [hidden gem] neighborhoods, are becoming a more accessible option, and developers continue to invest in these areas," the report said. "If [homebuyers are] looking for something move-in ready, take the time to explore these up-and-coming places."

Other "hidden gem" ZIP codes in Opendoor's report include North Texas exurbs like Princeton (75407) and Royse City (75189), and Rosenberg (77471) outside Houston.

Opendoor's hottest ZIP codes of 2023 are:

No. 1 – Cypress, Texas (77433)
No. 2 – Katy, Texas (77493)
No. 3 – Clarksville, Tennessee (37042)
No. 4 – Yukon, Oklahoma (73099)
No. 5 – Summerville, South Carolina (29486)
No. 6 – Forney, Texas (75126)
No. 7 – Aubrey, Texas (76227)
No. 8 – New Braunfels, Texas (78130)
No. 9 – San Antonio, Texas (78253)
No. 10 – Fort Worth, Texas (76179)

The study examined the U.S. ZIP codes where people bought homes the fastest in 2023, using local Multiple Listing Services (MLS) data in markets where Opendoor operates. The ZIP codes were ranked by the total number of homes that went into contract within 90 days of listing.

The report can be found on opendoor.com.

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local real estate report

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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