In February, the median home price across the Austin-Round Rock-San Marcos MSA fell 3.9% year-over-year to $430,000, according to the latest Central Texas Housing Report released by Unlock MLS. While closed sales in the MSA dipped 6.5% yearover- year to 1,856 sales, rising inventory – up to 5.7 months of inventory –– indicates growing opportunities for buyers heading into the spring homebuying season. In the leasing market, supply increased to 2.3 months of inventory, driving a 2.4% drop in median rent to $2,195.
Clare Knapp, Ph.D., housing economist for Unlock MLS and the Austin Board of REALTORS , noted that while elevated mortgage rates and affordability challenges have factored into the decline in sales, sellers are lowering prices to attract buyers, helping to further stabilize the market.
“As affordability remains a key constraint for many first-time homebuyers, the single-family leasing market continues to be a viable alternative. While closed sales have slowed this month, sellers adjusting their pricing strategies to align with market conditions are keeping transactions moving. With inventory levels rising, buyers are regaining leverage, creating a more favorable environment for those who have been waiting for the right moment to purchase. Mortgage rates are expected to remain elevated this year, which may not bring significant relief to buyers, but will provide more predictability, allowing both buyers and sellers to navigate the market with clearer expectations. As we head into the traditionally busy spring homebuying season, increased options and improved pricing flexibility could encourage more buyers to transition from renting to homeownership.”
