Horseshoe Bay has long been known for its incredible natural beauty and peaceful surroundings. Thanks to its convenient location near Lake LBJ and abundant opportunities for outdoor pursuits, it’s no surprise that the city has become an attractive investment option for many homebuyers.

If you’re thinking about buying a property in Horseshoe Bay, you’re probably wondering about the current local housing trends you should be aware of. In the article below, we explain everything you need to know to make an informed choice.

Horseshoe Bay is Currently a Buyer’s Market

Like the rest of America, the housing market in Horseshoe Bay currently favors buyers. Although many predictions at the beginning of 2024 indicated that there would be limited inventory and a competitive market, the reality is a little different.

In fact, the August 2024 Horseshoe Bay Housing Report shows that the number of active listings has increased by 30.2%, with 341 homes available. This means that buyers now have more choice, allowing them to find a property that’s just the way they want it.

The months of inventory have grown to 13.9, compared to 11.6 months last year. Likewise, homes are taking longer to sell, with an average of 151 days on the market.

Interest in Luxury Horseshoe Bay Homes

Horseshoe Bay is a place that offers an upscale, luxury lifestyle with excellent amenities. So it’s no surprise that a significant portion of homes (38.5%) listed fall within the $500,000 to $749,999 range, while high-end homes make up 26.9% of the market.

This is good news for homebuyers looking to invest in luxury properties. However, the current market segmentation can be challenging for entry-level buyers who are looking for homes in the lower price category.

But Those Mortgage Rates

Over the past year, rising interest rates have made mortgages more expensive, directly affecting buyers’ purchasing power for Horseshoe Bay homes. When combined with higher home prices, these rates often discourage buyers from investing in local housing. This issue, of course, is already in the beginning stages of fixing itself- the FED did cut interest rates in September and appear poised to do so in November and into 2025.

Tips for operating in the current market

Take advantage of inventory. An increased number of listings means you have more options to choose from. Don’t rush, and take your time to compare different properties. This is also a great time to use your negotiating powers!
Stay up-to-date with mortgage rates and lock them in when they are favorable.
Work with a local expert who understands the nuances of the Horseshoe Bay market.

The Horseshoe Bay real estate market is currently going through an interesting chapter. While prices and the number of listings are rising, sales are decreasing, which showcases a shift toward a buyer’s market, where buyers now have more power.

When the market is undergoing changes, buying or selling an investment property can seem overwhelming. Our team at Horseshoe Bay Real Estate Group would love to help you minimize the stress and guide you through the entire process! To learn more about our services or get information on the best Horseshoe Bay homes for sale, get in touch with us today!