March Austin Housing Market Report

March set another record for the Austin-Round Rock real estate market when the median home price reached $521,100, which is a 22% increase from March 2021. Houses spent an average of 21 days on the market, which is down 6 days from this time last year. Keep reading to learn about the current Austin market, and figure out how to be better prepared for common hurdles and challenges.

“The slight inventory increase in March is a welcome sight for those watching the pace of the market," says Realty Austin Head of Sales Jolene Weinstein. “The demand for homes in Austin is continuing to rise, and we’re seeing buyers look further from the city center than before.”

Some of the best places for first-time buyers in Austin are near the city outskirts, and these areas are seeing incredible growth and demand. According to Community Impact, Round Rock, Pflugerville, and Hutto are seeing an increase in home sales. Pflugerville home sales increased a rapid 15% from January to February, and sales in Hutto increased 29.79% in that time. 

For buyers looking to get more of their wants in a home in terms of size and price, being flexible with location is one of the ways to expand your options in a competitive market like this one. 

“When a person or family moves into Austin, finding a place to live is at the top of their agenda. The latest Austin Board of REALTORS® data shows strong housing market growth in Bastrop and Caldwell Counties,” says Lila Valencia, a City of Austin demographer. “This is a sign that people are having to look farther out from the central city, which has implications not just for the local housing markets in these areas but also for transit and transportation and access to other amenities and services.”

While factors like increasing interest and mortgage rates may create a sense of uncertainty among those looking to purchase a home right now, buyers need to know that higher interest rates will not always signal lower housing prices, especially in a market that is in as much demand as Austin’s.

In addition, Forbes reports that the Federal Reserve may hike interest rates 6 more times this year. It is very possible that if you are waiting to see if you can pay less, you will end up paying more. If you’re ready to start your home search now, our knowledgeable agents can help you reach your real estate goals. 

For those waiting to purchase a home for fear that the increase in home value and pricing is temporary and they may lose money, the history of the market should soothe those concerns. According to data reported by the Federal Housing Finance Agency, of all the major cities in the US, Austin is the only city that shows only one year of negative appreciation over the past 20 years. If you are a seller watching your home’s value grow, now is the perfect time to receive an estimate on your home’s worth. 

Also, Austin is the number one housing market for growth and stability, according to CultureMap. This further illustrates that buyers should have a sense of confidence in the market, as job creation and economic growth continue to trend upward. 

According to Axios, the Travis County appraisal roll increased 43% to $447 billion, led by a 56% increase in residential properties. This means that property taxes will likely increase as well, so homeowners should make sure they know their options, like protesting their property taxes. This can create strain for homeowners who are not ready to sell. That said, it’s good news for homeowners who have been thinking about selling their homes and relocating.

If you want to sell your home and don’t know where to start, reach out to one of our talented agents and get the ball rolling. Those looking to sell their homes in Austin right now are likely to get more than their asking price, according to Austonia. For sellers that are considering moving forward with an instant buyer or iBuyer like Opendoor or Zillow, keep in mind that you won’t benefit from multiple bids. 

Going with a real estate agent will also provide you with support and insight that you won’t get otherwise. The experienced agents at Realty Austin can show you how to buy before you sell, which can help relieve the uncertainty of acting on the move you’ve been thinking about and help you navigate any challenges you are facing. 

No matter where you are in the home buying or selling journey, working with an experienced agent can be the key to understanding market changes and ensuring you meet your real estate goals.