February was another one for the books in the Austin-Round Rock real estate market. The combination of high demand and low supply continues to fuel price increases, and higher interest rates haven’t dissuaded buyers from continuing the house hunt.

The price increases have been most notable in Austin and Cedar Park where demand is extremely high. Austin leads the metro in median single-family home price at $367,701 in February. Homes below this price are becoming increasingly difficult to find. Williamson County is giving buyers a little more to work with. The housing inventory level actually ticked upward slightly to two months largely due to new builds in Leander, however, home prices also went up by double digits.

A growing population and strong economy are continuing to influence the market. While job creation appears to be capping off, that hasn’t slowed down migration to Central Texas. In response to the tightening supply, buyers are increasingly expanding their home search further out north and south to the edge of the market area in hopes of finding affordable homes with a relatively reasonable commute to Austin.

Kyle, TX Market Stats

Median Single-Family Home Price: $213,000 (2.8% y-o-y increase)
Number of Home Sales: 63 (21.2% y-o-y increase)
Inventory: 2.2 months

Buyers that are on a budget should pay attention to the pricing trends. Analysts had anticipated this year’s annual median price increase would be approximately 5% in the Austin area. To date, appreciation has exceeded that expectation. The low inventory levels are pushing home prices upward month after month. Combined with increasing interest rates, now is the time for buyers who are looking for affordability.