Homebuyers and sellers are starting to feel optimistic about the Austin-area housing market, according to a new report by the Austin Board of Realtors.

According to the latest analysis by Unlock MLS, which provides real estate data across the Austin-Round Rock-Georgetown metropolitan statistical area (MSA), bothpending and closed sales increased slightly in January compared to the previous year. 1,667 homes were sold last month, up 4.3 percent; There were also 2,480 pending sales, up 3.8 percent.

Median prices in the MSA dipped slightly year-over-year to $430,000. Unlock MLS and ABoR housing economist Clare Losey, Ph.D., shared that the recent decline in mortgage rates has allowed for lower home prices heading into 2024.

Losey also adds that this past January was the 15th consecutive month of year-over-year median housing price drops across the Austin-Round Rock MSA.

"Mortgage rates peaked in late October before declining in November and December, providing a boost to buyer’s purchasing power, which is borne out in the increase in residential homes sold in January," Losey explained. "While there are more options available for homebuyers in our market today, more work needs to be done to ensure more affordable housing is available in Central Texas."

Losey said ABoR will continue working alongside the Austin City Council to support city-wide housing policies that help first-time homebuyers and "those who need it the most."

In the city of Austin, 520 homes were sold last month at a median price of $534,500. There were 788 pending sales in January, 979 new homes on the market, and a total 2,691 active listings.

Central Texas housing trends in January 2024

712 homes were sold last month in Travis County, with median prices dipping 3.3 percent year-over-year to $478,500. There were 3,819 active listings on the market; about 4.3 percent more than January 2023.

Meanwhile in Williamson County, 607 homes were sold last month, with median prices at $429,000. There were 992 new home listings, with a total 2,307 active home listings.

Hays County saw a 4.6 percent increase in residential homes sold in January. The month saw 251 homes sold in the area, with a median price of $366,140, which is nearly 12 percent less than January 2023. Active listings rose by less than one percentage point (0.4) to 1,281.

Home sales in Bastrop County increased a whopping 58 percent when compared to this time last year, with 81 total homes sold. Median prices increased slightly year-over-year to $366,018. There were 454 active listings on the market in January, and 183 new home listings.

Homes in Caldwell County sold for a median price of $303,990 in January. A total of 16 homes were sold, which was a dramatic 220 percent increase from the previous year. There are 115 active homes on the market, and 41 new listings.