By LYNETTE HAALAND
Four Points News

There were fewer homes sold in Four Points and the prices were lower in 2023 compared to 2022.

Last year, the median sold price dropped 12% in the 242 homes that sold in the Four Points area. The median price ended up at $855,000 in 2023 compared to $973,810 in 2022. Prices, however, are still significantly higher than a couple of years ago.

“The median sold prices in the Four Points area look a lot like 2021 numbers, which is still an incredible increase from years past,” said Rhonda Durrill, Realtor and broker associate with Avalar Real Estate and a Steiner Ranch resident. 

“The year-over-year median sold prices are down a little over 12%, but the three-year trend line is up an incredible 36.8% over 2020 market numbers for the area,” Durrill said.

Last year buyers who paid cash for homes made up nearly a quarter of all home sales in the local area.

“Cash buyers are still a large force in the market, as 21% of home buyers in Four Points paid cash during this time frame,” Durrill said.

The Four Points area has always had a lot of cash deals, even when the interest rates were lower. Cash deals over the past five years have stayed relatively steady: 2019 at 20%, 2020 at 14.5%, 2021 at 20%, 2022 at 22%, and 2023 at 21%. 

“Some folks just want to diversify their money and put some into real estate,” Durrill shared.

For those who are financing their next home, interest rates have come down from their peaks, and hopefully will continue to slowly recede in 2024, she added.  

This is helping potential buyers to envision a home purchase in 2024, although inventory appears like it will remain low for the foreseeable future. 

Interest rate buydowns are still occurring, while many buyers are planning to save that cost and just refinance when rates reach a lower watermark, according to experts.

Durrill expects that the lower inventory and improving rates will cause more competition from the normal spring and summer markets.

“We expect another strong year in 2024 in the Four Points communities,” she said.

Taking a wider view, home sales decreased in Austin and Travis County according to the Austin-Round Rock Metropolitan Statistical Area numbers in the Austin Board of Realtors 2023 and Year-End Central Texas Housing Report. 

In 2023, the median price for a home in the Austin-Round Rock MSA decreased 10.2% to $450,000, according to ABOR.

When compared to the steep 24.2% decline in pending sales in 2022, 2023 saw a slight 3% decline to 30,353 sales emphasizing that the Central Texas housing market continues to find its footing despite macroeconomic factors impacting the broader housing market and economy. 

“In 2023 the Austin-Round Rock MSA housing market continued its move towards a more sustainable pace,” Kent Redding, 2024 ABoR president, said. “Housing inventory reached the highest level it’s been in more than eight years, and while there was a drop in closed sales and median close price, these were both symptomatic of higher mortgage rates.”  

In 2023, sales dollar volume in the MSA dropped 17% to yield a $17,498,390,950 on the Austin-area economy, according to ABOR.

Clare Losey, Ph.D., housing economist for ABoR, identified higher mortgage rates as being the biggest constraint for potential homebuyers in 2023 and underscores the lack of housing accessibility, specifically for first-time homebuyers. 

“The single biggest factor constraining the Central Texas housing market in 2023 was the gradual rise in mortgage rates, which peaked in late October. This caused sellers, and buyers essentially, to continually readjust to the current rate environment. While we have seen some leveling off in home prices, the Central Texas region still lacks a sufficient inventory of affordable homes for sale, especially those homes priced below $300,000, which is keeping many would-be first-time homebuyers on the sidelines.”

Rhonda Durrill, Realtor and broker associate with Avalar Real Estate, compiled these reports using the median value data in 2023 (January 1 through
December 31) from the Multiple Listing Service in Four Points which includes Comanche Trail, Grandview Hills/Parke, River Place, Steiner Ranch and
Westminster Glen. This report uses median sold price, sold price per square foot (SP/Sqft), and cumulative median days on market (DOM).