SoCo Real Estate Market Prices and Trends

SoCo Real Estate Market Prices and Trends

Austin is one of the country’s premier destinations thanks to its spirited nightlife, strong economy, and natural resources mixed within a stylish urban core. It has walkable streets that provide access to some of the best entertainment and cultural venues. With much to love, it is easy to understand why the Austin real estate market is hot.

While the housing market is not as hot as it was in 2021, buyers still can expect to pay top dollar for homes in this city known as the Live Music Capital of the World. Bidding wars, seller concessions, and negotiations all are likely components of a buyer or seller’s experience in Austin’s housing market. This is especially true for those looking in and around the trendy South Congress Avenue (SoCo) neighborhood.

Whether you are planning to buy or sell a home in the SoCo area, you need a real estate expert to get you the most value. Versatile in dealing with diverse properties, from affordable condos to multi-million dollar homes, Eric is an award-winning, top-producing real estate agent who brings valuable knowledge, adept negotiation skills, and a touch of sophistication to ensure successful transactions. His commitment to client satisfaction is evident in his personalized service, innovative approach, and unwavering integrity, leading to a sterling reputation and consistently exceptional results.

When discussing SoCo real estate, the neighborhoods of Travis Heights, Zilker, and Bouldin are also encompassed in this general area. Below you will discover the latest information you need to know about the SoCo real estate market.

Austin’s housing market

Even though home values nationally have cooled since 2021’s spike in prices, the market continues to flourish. Since April of 2022, home prices in Austin have increased by 2%. The percentage increase for median sold prices skews higher for smaller one-bedroom dwellings and larger properties with over five bedrooms. Midrange homes at the half-million dollar mark, by contrast, have remained stable or seen a slight decrease.

The SoCo area contains a mix of refined condominiums, new townhomes, and single-family homes to suit any type of buyer. Travis Heights is characterized by its charming bungalows and craftsman-style homes, often surrounded by lush trees and gardens, giving the neighborhood a cozy and picturesque atmosphere. Zilker, on the other hand, boasts a mix of housing options ranging from modern condos and apartments to quaint cottages, providing residents with diverse living choices within walking distance of the famous Zilker Park. Bouldin stands out with its eclectic blend of historic residences, trendy townhouses, and contemporary designs, creating a neighborhood where both originality and innovation thrive. All three neighborhoods capture the vibrant spirit of Austin's architecture and lifestyle.

Interest rates are rising

Mortgage interest rates have been rising nationally, contributing to some of the shifts in the 2023 housing market. Buyers in 2021 experienced record-low interest rates that sometimes slipped beneath 3%. These rates made homeownership more feasible for many, but they also set an unsustainable precedent for low-interest rates that buyers probably will not see again. In 2022, rates soared to 7% thanks to action from the Federal Reserve to combat inflation. In 2023, the average interest rate currently is 6.52% for a 30-year fixed-rate mortgage.

Some buyers may wish to wait until interest rates go down again, but it is unlikely they will decrease much in 2023. In fact, some financial experts predict that the year will close with interest rates above 7%, depending on the state of the economy and inflation. Given Austin’s popular status, those who have the means may be better off locking in a property now to build equity. After all, interest rates can fluctuate, but Austin’s home prices seem primed to continue soaring.

Housing inventory projections

Many people sat out from home buying in 2021 and 2022 due to competitive bidding wars and escalating prices. Low inventory also contributed to the housing market challenges. In most years, a six-month supply of homes is considered normal. Going back to 2020, however, the inventory bottomed out at 1.9 months.

Today, the inventory numbers have bounced back to a small degree, with unsold inventory sitting at 2.9 months. For buyers, this creates a less urgent scenario where they may not need to pounce on a property as quickly. Further, in Austin, the number of homes listed has increased by 12.8% versus this time last year. Buyers can trust that they have a little extra time and stronger inventory options to make a more informed decision.

Even so, given Austin’s status as one of the fastest-growing cities in America, the competition will be stiff for the best properties. Live music, excellent cuisine, outdoor activities at Lady Bird Lake, and countless cultural venues making the area around SoCo a desirable place to call home. Buyers should be clear on their non-negotiables, get pre-approval from a lender, and be ready to move swiftly when they hone in on an attractive property.

Housing market trends

According to the most recent data, existing home sales are down by 3.4%. For buyers, this is a favorable trend after two years of facing intense competition and inflated prices. Buyers may be able to demand more from a seller if that seller is eager to move their property quickly. Sellers, on the other hand, need to be mindful of their pricing strategy to avoid situations where their properties stagnate on the market. While homes sold in just 11 days last year, the average sale time is 43 days a year later.

To make properties more attractive to buyers, sellers may need to concede to making essential repairs or absorbing closing fees during a transaction. Loan origination fees, property taxes, title insurance, and inspection fees are all included under the umbrella of closing costs. On a positive note for sellers, Austin homes still are selling quickly overall, with over half of all properties selling in under one month.

Invest in Austin’s real estate market

When you are ready to list or purchase a property, it pays to work with a local agent with intimate knowledge of the real estate market. Eric Copper has the track record and in-depth understanding of market trends to help you navigate the SoCo scene in Austin. He works with out-of-state clients searching for an ideal property close to Austin’s best amenities, longtime residents seeking new spaces in the Travis Heights, Zilker, and Bouldin neighborhoods, and individuals who need to sell on tight timelines.

Choosing an experienced real estate agent is an essential decision in a tight market. Eric has managed over a billion dollars in sales volume annually and earned clients’ trust with over 20 years in the industry as a real estate professional. Contact Eric today to explore the SoCo real estate market.

Work With Eric

When hiring Eric to represent you, whether relocating, buying, or selling, your expectations will be met and exceeded as he takes enormous pride in his client’s satisfaction.

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