Travis County Real Estate Market Update – February 2025

Market Overview

Median Sale Price: $480,000 (unchanged from last year)

Number of Sales: 624 (-3.4% from last year)

Total Market Volume: $424.6M (-0.6% from last year)

Average Price per Sq. Ft: $290 (-4.5% from last year)

Median Days on Market: 60 days (-2 days from last year)

Average Sale Price: $680,420 (+2.9% from last year)

What This Means: The market is stable with slightly declining sales and pricing. While fewer homes are being sold, prices are holding steady, suggesting that buyers remain cautious but are still active.

Pricing Trends

- Price per Sq. Ft has declined from $315 last year to $290 now (-4.5%).

- Median Sale Price has remained steady at $480,000, indicating buyer hesitation due to higher interest rates but continued demand.

- Luxury Market ($1M+ homes) saw fewer sales but stronger price retention, with some discounts on high-end properties.

Buyer Tip: With price-per-square-foot declining, now is the time to negotiate for a better price per sq. ft, especially on homes that have been sitting longer.

Seller Tip: Price your home competitively based on neighborhood trends to attract buyers faster. Overpricing will lead to price cuts as nearly 8.9% of active listings had to drop their price.

Market Activity & Sales Pace

- Median Days on Market: 60 Days (slightly faster than last year)

- Buyer Demand Softening: Sales down 3.4% compared to last year.

- More Listings Available: 1,370 new listings (+23.4% from last year)

- Pending Sales Down: 1,109 homes under contract (-5.9%)

Buyer Tip: More homes on the market = more options and better negotiation power. If you're buying, now's the time to secure a deal before competition picks up in the spring.

Seller Tip: Expect longer selling times unless your home is well-priced and move-in ready. Consider staging or offering closing cost incentives to attract offers faster.

Interest Rates & Affordability

- Current Mortgage Rates: 6.85% for a 30-year fixed loan

- Effect on Buyers: Higher rates make monthly payments higher, meaning affordability remains a concern.

- Effect on Sellers: Buyers are choosing homes more carefully, so sellers need to price correctly and offer incentives like rate buy-downs.

Buyer Tip: Look for builder incentives or seller concessions to offset higher interest rates. Some sellers are offering rate buy-downs to attract buyers.

Seller Tip: If your home has been sitting on the market, consider offering closing cost assistance or a small price reduction to get more offers.

Hot & Cool Markets in Travis County

**Strongest Growth Areas:**

- Del Valle (+46% Sales Growth) – Affordable options driving demand.

- Elgin (+37.5% Sales Growth) – A growing market for first-time buyers.

- Buda (+25% Sales Growth) – Family-friendly, suburban appeal.

**Softening Markets:**

- Pflugerville (-14.5%) – Fewer sales, lower demand.

- Lakeway (-29.5%) – Higher-priced homes taking longer to sell.

- Leander (-64.7%) – Market slowdown with fewer high-end home buyers.

Buyer Tip: Look into Del Valle, Buda, or Elgin for affordable deals and price appreciation potential.

Seller Tip: If you're in a slower market (like Lakeway or Leander), be flexible on pricing and offer incentives to attract buyers.

Final Thoughts: Is It a Buyer’s or Seller’s Market?

The Travis County market is balanced, with stable prices, longer selling times, and increased inventory. Sellers need to price competitively and offer incentives. Buyers have more choices and room to negotiate, but rising interest rates affect affordability.

Thinking about buying or selling? Let’s talk! I can help you navigate the market to get the best deal!