AUSTIN, Texas — Real estate experts now have an idea of what to expect this year for Texas real estate.
The KVUE Defenders pulled information from the Texas Real Estate Research Center at Texas A&M University, The Austin Board of Realtors and the Federal Reserve Bank of Dallas.
In the first quarter of 2023, the home price index for Austin-Round Rock was -8.43%, according to Texas Real Estate Research Center. Records show it fell again by double digits (-11.86%) in the second quarter. The home price index for Austin-Round Rock showed -6.19% for the third quarter.
The Texas Real Estate Research Center and Austin Board of Realtors predict it to flatten or maybe dip slightly. Economists and researchers at the Texas Real Estate Research Center looked at certain market factors: economic output, jobs, income, spending, population, interest rates, energy prices, politics and global conflicts.
The median price for the Austin–Round Rock area was $424,450 in November 2023.
"These are the highest rates that we've seen since 2001. However, the good news heading into 2024 is that mortgage rates are likely to gradually dissipate, and I'll stress that gradually. We aren't expecting any significant shifts in mortgage rates per se, but maybe, hopefully, somewhere to the tune of ending up in the low to mid-6% range," Austin Board of Realtors housing economist Clare Losey said on the organization's podcast.
Those living in apartments or looking for one may continue to pay steeper prices.
“Multifamily effective rent growth will strengthen in 2024. Growth in the largest metropolitan markets will average 2.5% for the year,” the Texas Real Estate Research Center shows.
Retail and industrial rents are expected to increase, while office rents may fall over the year, according to the Texas Real Estate Research Center.
Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.