While home prices are rising across the country, Texas metropolitan areas such as San Antonio and Austin, which represented the fastest-growing housing markets during the pandemic, are still experiencing modest declines, according to the latest data from Zillow. There is.
National home prices in February rose 0.3% from the previous month and 4.2% from a year earlier, but in San Antonio they were almost flat from January to February, falling 2.5% from a year earlier. In Austin, a former pandemic boom town, home prices rose 0.3% in February from the previous month, but were still down 5.1% from a year earlier.
The latest data, updated on February 29, shows an even steeper decline compared to last year's numbers. In San Antonio, the median home price was $253,762, down 2.8%. In Austin, sales were down 6.2% to $533,719.
In these metropolitan areas, the decline in home prices was even more pronounced compared to the 2022 peak. Since then, home prices in San Antonio have fallen by 7.5 percent, and in Austin, they have fallen by a staggering 20.4 percent.
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Among a list of the 50 largest urban housing markets in the U.S. analyzed by Zillow, San Antonio, Austin, and New Orleans, Louisiana were the only metro areas where home prices declined in February. In New Orleans, prices in February were down 0.1% month-over-month and 7.5% year-over-year.
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The three metropolitan areas are still suffering from the effects of price adjustments that began in the US in late summer 2022. The price adjustment came as demand began to fall as mortgage rates rose due to the Federal Reserve's aggressive interest rate hike campaign to curb surging inflation. While this correction appeared to end nationally by spring 2023, pent-up demand and low inventory have kept prices from plummeting, especially in Austin and New Orleans.
Home prices are currently falling across Texas, as the state ranks with Florida in building the most new homes in the nation. The average home price in the Lone Star State was $298,624 as of Feb. 29, down 0.1% from a year ago, according to Zillow. However, data from Texas Realtors shows that this decline has not been matched by an increase in sales.
Jeff Conn said: “Inventory growth in most markets should provide buyers with more options in 2024, but changes in mortgage rates continue to influence buyers' real estate investment decisions. “We expect interest rates to fall by the end of this year.” The chairman of Texas Realtors previously said in a statement: newsweek.
“Rising mortgage rates deterred some buyers from purchasing in 2023, but the overall median price of homes in Texas still increased by a modest 1.4% compared to 2022. Real estate is so localized that certain markets are seeing very different trends than what Texas as a whole is seeing. , real estate agents can help buyers understand specific market conditions and make the best decisions for their circumstances.”
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While San Antonio and Austin have seen significant declines since February 2023, prices have increased in other Texas metropolitan areas. In Dallas, home prices rose 0.5% month-over-month in February and 1.3% year-over-year. In Houston, sales rose 0.3% from the previous month and 1.2% from the previous year. Compared to their peak in 2022, prices in these metropolitan areas fell by 5.7% and 3.8%, respectively.
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