East Austin Real Estate Market Prices, Trends, and Forecast 2023

East Austin is a residential district directly east of Downtown Austin bordering I-35. The constituent neighborhoods of East Austin are diverse communities where many families, business professionals, artists, students, and entrepreneurs make their homes. You will find gorgeous parks, excellent restaurants, great bars and entertainment, and a vibrant arts scene. Each year many people worldwide move to East Austin for its beautiful homes, cultural appeal, and central location.

The national real estate market has been a wild ride for investors recently. Austin has seen its share of ups and downs in the market. With home inventories plummeting and buyers scrambling to find available homes, Austin was a hot market for sellers in recent years. But with interest rates increasing and the market leveling off, what are the prospects for the East Austin real estate market for 2023 and beyond?

Housing inventory in Austin is on the rise. Stability in the market is usually achieved when the local housing supply reaches six months (in other words, when the equivalent of six months of homes are available on the market). By contrast, when there are fewer than three months of homes available, inventory is considered to be low. As of May 2023, the inventory of properties in Austin had rebounded to 3.4 months, representing a significant rebound year-over-year.

As of July 2023, the current interest rates for mortgages in Texas were hovering above 7%. The consistently high interest rates of 2023 represent a rebound effect after mortgage prices hit record lows in 2021. It’s doubtful that interest rates could rise much more, and should interest rates drop, we could see an East Austin market more favorable to buyers.

Across the nation, rental prices have steadily increased along with housing sales since 2021. Rental rates in Texas have followed a similar pattern, rising significantly each year since then. We can attribute high rental prices to East Austin’s increasing popularity: newcomers love its nightlife and proximity to Downtown Austin. That demand continues to outpace the development of new apartment complexes in East Austin, and prices have risen in tandem with the relative shortage of rental properties.

Austin has a population of approximately 2.2 million as of 2023, reflecting a steady 3% increase from the previous two years. Homes in East Austin are still in high demand as more and more people move there.

After the big housing boom, sales receded mainly due to rising mortgage rates. When the Fed raised interest rates back to their pre-pandemic levels of 6–7%, this halted the real estate market. Since then, prices have stabilized, and the housing market should normalize throughout Greater Austin.

 

Foreclosure rates in Austin were 1 in 2,914 homes for the first quarter of 2023. While Texas ranks as one of the states with the most foreclosures, higher-profile areas such as Austin and Dallas are much less affected.

 

Median home prices in Texas matched the nationwide trend of leveling off. However, the East Austin real estate market increased substantially, with a 2.3% increase from $455,000 to about $465,000.This increase continues to escalate according to rising property value, making the highest-valued homes the best investments.

Mueller was initially designed as an exclusive planned community built on the green lands of the old Robert Mueller Municipal Airport. It has recently become a trendy place to reside in East Austin. Since 2007, the Mueller development has resulted in over 5,000 new homes. Residents here enjoy 140 acres of parks and lush green space. A business center at the heart of Mueller offers dining, shopping, a medical research complex, a film studio, and plenty of rental properties. View the latest Mueller homes for sale here.

 

Windsor Park is located just six miles from Downtown Austin. It is widely regarded as an upscale community with many parks, tree-lined streets, and open green spaces. Windsor Park has a population of over 16,000 residents, many of which are families. The neighborhood features many classic ranch-style homes and lots of open space.

Certainly, the vibe in Windsor Park is more relaxed than in Austin’s more urban areas. Residents enjoy afternoons in the park, casual dining, boutique shopping, and outdoor activities such as golf. View the latest Windsor Park homes for sale here.

 

University Hills is a residential district east of Downtown Austin and north of Windsor Park. Many of the homes in University Hills are older ranch-style properties with multi-room layouts. Most lots are vast, with spacious green lawns and beautiful gardens. There is a sense of pride within the community of University Hills, and neighbors gather at annual events like Keep Austin Beautiful, where residents keep local parks and communal areas clean and well-maintained. View University Hills homes for sale here.

Not surprisingly, the best neighborhoods in Austin correlate with the most robust real estate markets — good news for anyone interested in entering the East Austin real estate market. Demand remains high, and luxury properties in East Austin have excellent investment potential.

Investing in real estate isn’t something you have to do alone. An experienced agent can help save you valuable time in your homebuying journey. If you are looking for an experienced, proven real estate agent in the East Austin area, reach out to Jo Vincent. Time and again, Jo and her team have found clients homes they love at an unbeatable price. Call Jo today as your next key step toward homeownership in East Austin.