Gillespie County Entry-Level Homes: Can You Afford One?

Can buyers afford entry-level homes in Gillespie County today? The median price for the bottom quartile of closed sales is $595,000 across 41 transactions over the last six months. With a current mortgage rate of 7.4% from the Freddie Mac Primary Mortgage Market Survey dated October 8, 2026, monthly payments have risen significantly compared to previous years. ALEX Intelligence applied an affordability model using a 20% down payment on a $595,000 home at the current rate. The resulting principal and interest payment is $3,296 per month. This figure represents the baseline cost for entry-level buyers in this market segment. The data shows that prices for these homes are down 18.5% compared to the same period last year, when the median was $730,000. However, the number of days on market has increased by 30.6%, indicating a slower pace of sales for this price tier. While the median price per square foot has dropped 37.1% from last year to $266, the absolute entry point remains high relative to historical norms. Buyers should note that only 41 closed sales qualified for this analysis in the rolling six-month window. This limited sample size suggests caution when generalizing affordability trends. The market is currently balancing lower prices against higher borrowing costs, creating a complex environment for first-time buyers seeking entry-level inventory. Want to see this home? Call or text George at 713.918.9951 for a private showing. Coverage: most home sales in Gillespie County are listed in the Central Hill Country MLS, which ALEX does not receive yet. The figures in this post count only sales listed in Unlock MLS (ABOR), so they describe part of the local market, not all of it. Data from Unlock MLS. Information deemed reliable but not guaranteed. Model outputs are ALEX Intelligence estimates, not appraisals. Read more Central Texas market data on the ALEX blog: https://alex-companies.com/blog MIT, Nvidia, Google & IBM-Trained. Cross Domain-Expert: Quantum, AI, Ethics, Sovereignty, Intelligence, Philanthropy. Solepoint Planning. VUI AI Cloud Architect. AI Certifications Development. Quant/AI Instructor. Castor Venture Club Member. Associate Broker. George Arnold Alexander III, MPA Partner, ALEX Companies Associate Broker, Alexander Tiffany Southwest, LLC dba ALEX.realestate, et.al. Texas License #574878-B · Broker License #565194-BB Broker, ALEX Real Estate · North Carolina License #367733 Independent Broker, ALEX Real Estate · Colorado License #II.100112456 [email protected] · +1 713.918.9951