Austin Real Estate Sees Property Values Dip Amidst Rising Per-Square-Foot Costs in March 2024

The Austin real estate market is experiencing a shift, with the average property value and sale price decreasing, yet the price per square foot increasing.

authorWritten by Manuel MartinezApr 30, 2024

Austin, Texas, the vibrant capital known for its live music, tech scene, and eclectic culture, has been a magnet for homeowners and investors alike. Recent data reveals an intriguing shift in this bustling real estate market. Since June of 2023, we have seen a steady decline in both the average property value and sale price within the city. Specifically, the average property value decreased from approximately $634,375 in June 2023 to $609,500 by March 2024. Similarly, the sale price dropped from around $604,065 in June 2023 to $562,541 in March 2024.

Austin TX Real Estate Report April 2024 House Prices
Austin TX Real Estate Report April 2024 House Prices

Contrasting this downward trend, the average sale price per square foot saw an uptick. It increased from $334 in June 2023 to $306 by March 2024. This rise suggests that though the overall sale prices are falling, there’s a higher value placed on the property area, which might indicate a market leaning towards smaller but pricier units per square footage or simply a shift in market dynamics where specific property types, possibly in prime locations, retain their high per-square-foot value.

The market’s fluidity is further highlighted by the changes in property counts and the number of properties sold. In May 2023, approximately 512 properties were on the market, which then rose to a peak of around 610 in July 2023. However, by March 2024, this number had fallen to just 540. Similarly, the number of properties sold had its high point in September 2023, with a whopping 7,960 sales, decreasing quite substantially to 6,066 sales by March 2024.

Austin’s Neighboring Cities and Their Real Estate Trajectories

The fluctuations in Austin’s market are mirrored diversely by its neighbors. Each nearby city tells a unique tale of economic and demographic shifts influencing its real estate landscape. Manchaca, which is a small community within Austin’s Metropolitan area, saw an increase in average property values from $387,000 in March 2024 to a notable $530,800 in January 2024. This significant rise could suggest a growing demand for property in this area or a trend of upscale development projects.

In juxtaposition, Cedar Park experienced a decline in its average property values, descending from $459,950 in March 2024 to a lesser $399,995 in January 2024. This decline could be attributed to various factors such as market saturation, changes in community amenities, or the economic fluctuations that impact suburban areas differently from urban centers.

Similarly, Buda, another neighbor to Austin, showcases a decrease in its average property values from $439,900 in March 2024 to $435,000 in January 2024. This slight drop, while not as drastic as Cedar Park’s, still shows the variable nature of the local markets surrounding Austin.

Snapshot of Current Real Estate Values and Volumes in Austin and Environs

As we navigate through the specifics, Austin’s current market (as of March 2024) seems to be stabilizing with an average property value of $609,500 and a sale price of $562,541. The property count stands at a moderate 540, with 6,066 sales concluded.

Looking at Manchaca, we observe a contrasting scenario, with its average property value set at $387,000 and an average sale price that surpasses it at $494,722. The property count here is relatively low at just two, although 45 properties were sold, which could point to a significant demand for the few available homes.

Move over to Cedar Park, and the numbers adjust again. The average property value here is recorded at $459,950, and the sale price closely follows at $496,367. Cedar Park also had a higher property count of 36, with 494 properties sold, indicating a relatively healthy market turnover.

In Buda, the average property value is about $439,900, with properties being sold, on average, for $388,754. Here, the property count is at 39, with 339 properties sold, suggesting a market where the sale price is notably less than the average listed value, potentially indicating room for negotiation or a buyer’s market scenario.

Apr-23 Mar-24 Change
Median Listing Price $442.4K $388.8K -12.14%
Median Sold Price $429K $388.8K -9.38%
Homes For Sale 42 39 -7.14%
Homes Sold 339 339

Del Valle’s average property value stands at $307,000, with an average sale price of $295,391. The modest property count of just six homes and 107 properties sold underscores a smaller but active market.

Lastly, Pflugerville’s market looks robust with an average property value of $449,900 and a sale price of $379,388. With a property count of 59 and 645 properties sold, it illustrates a bustling suburb with a significant volume of sales.

As the Austin real estate market and its surroundings continue to morph, the data points unearthed paint a clarifying picture, which is crucial for anyone looking to understand or participate in this sector—be it buyers, sellers, investors, or market analysts. The shifting trends underscore the need for a strong grasp of market dynamics or guidance by adept real estate professionals.

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