Hi! I wanted to start giving you more detailed information on the Dripping Springs Real Estate Market each month!
Although I enjoy posting funny IG reels and tourism blogs, I quite actually love learning more about the FED, developing financial and economic data that can impact the local housing market and Realtor industry news. I listen to 1-2 hours of this information each day and love digging into the MLS and watching the real time sales and data play out.
I also love having my ear to the ground to know the developments of the future in this area and how it could impact demand and home values! (Did you know that San Marcos is getting a 820,000 sq ft TV and movie studio? It is supposed to bring 1,400 creative jobs only 30 minutes from here. I bet some of them would enjoy living in Dripping Springs and rubbing elbows with Caster Studios and the long list of actors and creatives in this town!)
So let’s begin! There are three zip codes that feed into Dripping Springs ISD area- 78620 (Dripping Proper), 78737 (Belterra/Highpointe Area) and 78619 (Driftwood).
Real estate is HYPER local… even down to the neighborhood (that’s why you need a local realtor!).
Some neighborhoods have held their value, while others have dropped significantly.
If you’d like to have a higher level conversation with me about certain neighborhoods and values then just give me a call, text or email! 512-569-8480 or laurenclark@magnoliarealty.com
78620 also has some homes within Johnson City ISD and Lake Travis ISD.
Today I’m focusing only on 78620 within DSISD!
78620 Closed data for the last 30 days:
Average sales price: $780,651
Average close to list price: 95.6%
Average days on market: 103
Closed sales: 44
The 78620 rental market has 59 active lease listings averaging $3,125/month.
Texas Realtors releases an in depth analysis on zip codes, but it is usually 6 weeks behind. Here is the June infographic for 78620.
Why is inventory growing so much in 78620?
The last 3 years were an anomaly in the real estate market.
Record high demand, record low inventory and a host of other wild COVID related policies moved a lot of people around the nation (and world!) and a lot of them ended up in the Austin area.
We are now back to a 2019 style market with inventory levels and the pace of the market.
Gone are the days of 1 hour on market before 3 offers $100k over asking!
The biggest culprit (alongside higher home prices and property taxes) is the FED raising the interest rate and in turn the mortgage rates have grown to an average of 7.23%, almost a 23 year high.
When they were under 3% early on in the pandemic it allowed borrowers to be approved for 50% more home than they can afford now.
For every percent that the mortgage rate goes up a borrow loses 12% of their traditionally financed buying power. (Cash is always KING though!)
Simply put, the FED’s rate hikes have sidelined many would-be buyers by making it unaffordable for many to purchase. It’s putting a lid on the record high demand we experienced when the FED was sending money to everyone during the pandemic and held the benchmark rate at record lows for a long time during the pandemic. They realized that doing that made inflation white hot and now they are tightening at a record pace… which is having massive effects on everything from commercial real estate refinancing to car loans and credit cards.
Sound like all bad news?
Not for buyers! Home prices locally have come down a bit and there are many motivated home sellers that would be willing to sell their home under asking as we move into the fall when home prices dip further seasonally.
Some are more motivated than others… that’s why you need a good Realtor on your side to do a little digging! I can tell you if a home is priced appropriately for the current market or if they are pricing to the moon and will end up sitting until the listing expires.
There are still many strategies to get a buyer under contract in this high interest rate environment… I have lots of ideas and have many amazing local lenders that I can refer you to!
Homeowners who bought a home before the run up of 2021 still have a healthy amount of equity in their homes and although they missed the boat for the height of the market last summer, most can still sell with a good amount of equity.
Are you looking to buy in Dripping Springs, Texas? Just reach out to me and I’ll be happy to talk further! 512-569-8480
I’ve got an amazing listing in 78620 that is priced incredibly for the value and sq ft! Light restrictions, close to Bee Cave and Dripping Springs, within DSISD with STR potential!
Check it out at 920deercreek.com
Thinking about listing your home in the area? Click HERE and HERE to read about my value-driven, modern marketing for listings! Just give me a call if you’d like to talk further about strategy! 512-569-8480
Check out my Dripping Springs Guide HERE.
Click HERE to view current homes on the market.
Click HERE to get a FREE home valuation
Click HERE to learn more about the local adventure and businesses!
