Texas Home Prices Drop in San Antonio and Austin as Sellers Slash Asking Prices

While other states struggle with rising costs, two Texas cities see a decline as buyers lose interest.

Since the COVID-19 pandemic, the US has faced soaring mortgage rates and home prices. Now, these costs are finally starting to drop in some areas as they did in two Texas cities over the first quarter of 2024.

National Association of Realtors:
"[Over 90%] of homes in metro areas raised prices in Q1 of 2024. However, 16 out of 221 metro areas saw a decrease, including two in Texas."

San Antonio-New Braunfels: -4.6%

Q1 2024 Median Price: $305,800
Q1 2023 Median Price: $320,500
Realtor.com: "New Braunfels homes were on the market for an average of 53 days in April 2024, up from 49 days last year."

Austin-Round Rock: -0.3%

Q1 2024 Median Price: $466,700
Q1 2023 Median Price: $467,000
Realtor.com: "Austin homes were on the market for an average of 40 days in April 2024, up from 38 days last year."

A shift from the boom of 2020-2022, sellers are now cutting prices to speed up sales.

**"**Nicole Marburger, Legacy Real Estate Group:
"Some homes might sell in two to three weeks, while others could take two to three months."

Why the Change?

Texas has seen consistent population growth since 2000, with affordable housing, no personal income tax, and an influx of job opportunities. Austin and New Braunfels' lower costs of living, remote work availability, and the growing tech industry have also enticed buyers.

Californians, including Elon Musk, have made the move to Texas, with eight counties in the state ranking in the top ten fastest-growing counties in the nation.

With more buyers and longer sales periods, sellers are reducing prices to encourage purchases. This shift favors buyers, providing more opportunities and negotiating power in the market.