Nestled in Williamson County, Cedar Park is a Texas gem and has gained immense popularity in the past few years. Located within the Austin metropolitan area, Cedar Park has a population of around 83,000 and has experienced consistent growth in the past decade. Regarded as one of the safest, most gorgeous, and most glamorous communities in the Lone Star State, demand for Cedar Park, TX real estate continues to increase year by year.
An influx of new residents also means an increased need for housing which has created a wave of development in the area. This unique situation makes real estate one of the hottest topics discussed among homeowners, investors, and agents. If you are considering buying or selling a home here, it is essential to know what to expect. The Cedar Park real estate market is booming right now, but some trends could impact the market in the next few years.
Market conditions
The Cedar Park housing market is currently favoring sellers and has been since 2021. Home prices are on the rise, and homes are selling quickly. We expect this trend to continue in 2023 as the demand for homes increases and inventory levels fall. Sellers should prepare their houses for market sooner rather than later, especially if they are hoping to capitalize on the current market conditions. However, with fewer homes on the market and higher prices overall, many first-time buyers may find themselves in competition for their dream homes.
Cost of living
Cedar Park, TX cost of living is 122.3, 22.3 points above the national average. Living in this area is more expensive than in most places in the U.S., but the quality of life is unparalleled. Living costs affect all aspects of a person's life, including their ability to buy a house. Buyers need to prepare themselves for a higher standard of living. Higher living costs may mean people will need lucrative income streams to afford their dream home here, but it also means they'll be able to enjoy a higher quality of life. If living costs continue to rise, Cedar Park will continue to grow into a community for the most affluent.
Median home price
Cedar Park's real estate market has been strong for the past few years. In 2023, it will continue to grow at a moderate pace. According to Rocket Homes, the median home price is $543,460, up 18.1% from 2021. One-bedroom prices have drastically increased by 122.4%, the most significant hike. Meanwhile, three-bedroom properties remain the most stable on the market, with only a 14.2% increase in price.
Cedar Park homes are becoming more and more valuable each year as the city grows and attracts more businesses and residents. As long as sellers are willing to put in the time and effort needed to sell their home, they should have no trouble finding buyers who can afford it at its current price. Buyers should expect that prices will continue to rise over the next few years as demand continues growing outstripping supply.
Sale-to-list ratio
The city’s current sale-to-list ratio is 0.9. Despite climbing home prices, 64% of homes were sold below the asking price last month. This indicates that sellers struggle to find a comfortable place between their asking price and what buyers are willing to pay. This is a good sign for buyers who want to purchase a home in Cedar Park. The market is placing more pressure on sellers in favor of buyers. A shift into a balanced market could be expected in 2023.
Days to close
Cedar Park's median days to close dropped to 36 days from 38 days in October 2021. The number of days to close increased by 0.0% month-over-month, indicating a slight slowdown in home sales in the area.
Sellers may need to be more flexible with their ROI expectations if they want to sell quickly. It's also essential for sellers to ensure that they're marketing their homes in a way that appeals to buyers. If sellers aren't willing to make concessions or repaint or renovate their homes, it could push off potential buyers and lead them to look elsewhere, even if it takes longer to find a home that meets their needs.
Buyers may take longer than usual to find their perfect property and should be more selective about the features and amenities that are most important such as neighborhood or home type. This way, they can narrow their focus to a few options and make offers on homes that align with their desires.
Inventory
Inventory in this Texas city has remained steady, with only a 2.4% increase month-over-month. The majority of the available stock comprises three and four-bedroom family homes. The number of homes sold also only increased by two month-to-month. This indicates that the Cedar Park real estate market is neutralizing and not experiencing any drastic changes in either direction.
Sellers who are looking to sell a home will continue to be able to do so without any significant issues, as their property will likely still be attractive to buyers in this market. While price fluctuations may vary depending on the type of home being sold or location, overall inventory is not likely to change much from those seen currently. The stabilizing inventory coupled with the slower sales may indicate that buyers are more likely to find their dream home with less competitive pressure.
Those looking at buying or selling a home in Cedar Park in 2023 should keep an eye on inventory levels and mortgage interest rates to make an informed decision.
Mortgage interest rates
As the Federal Reserve continues to hike up the national interest rate benchmark to combat inflation, the buyers’ borrowing and purchasing power are becoming more limited. As of October 2022, Texas mortgage interest rates were 7.32% for a 30-year fixed loan and 6.43% for a 15-year fixed loan. Homebuyers will likely want to lock in lower rates as soon as possible before they rise any further. These factors may affect the market in 2023 by slowing sales and potentially causing some sellers to adjust their asking price.
Investment opportunities
Investors looking for a home with high resale value and an excellent location can find several opportunities in this area. For the past 20 years, Cedar Park homes have appreciated 218.77% and house some of the most valuable properties in the nation. Notable communities include Bella Vista, Red Oaks, Forest Oaks, North Buttercup, and Cypress Bend. This trend is expected to continue into 2023. With an abundance of new developments, an excellent school district, and luxury amenities, Cedar Park will remain a desirable place to live for years to come.
If you're looking to buy or sell a home in Cedar Park, Texas, contact Jillian Cooper, a realtor at Legacy Austin Realty today! She is one of the top real estate agents in Austin, and she'll help you navigate the market with a keen eye for what's happening right now and where it might go next.
