Horseshoe Bay Entry-Level Homes: Affordability Check

What does it take to buy an entry-level home in Horseshoe Bay today? The bottom quartile of sales in the last six months closed at a median price of $435,000 across 101 transactions. This figure represents the most affordable tier available in the market right now. ALEX Intelligence analyzed the affordability landscape using current mortgage rates and the median entry-level price. With a 7.32% rate on a 30-year fixed loan and a 20% down payment, the principal and interest payment for a home at the overall median price of $785,000 is $4,314 per month. This calculation uses the median sale price as the baseline for the affordability index. The market has seen significant shifts in recent months. While the overall median home price for all sales reached $785,000, the entry-level segment remains distinct. The number of new listings increased to 177 in the current six-month window compared to 100 previously, suggesting more options are coming to market. However, the median living area for these homes has grown slightly to 2,529 square feet, indicating that even entry-level properties are becoming larger on average. Buyers focusing on this price point should note that the share of sales below original list prices is high at 92.1%, meaning negotiation power remains with buyers in this tier. The median days on market for these homes has dropped to 77 days, down from 130 days in the prior period, showing that affordable inventory moves faster than before. For those considering a buydown to lower monthly costs, a 2-1 buydown would cost approximately $14,856 total, reducing the first-year rate to 5.32% and saving roughly $819 per month initially. This strategy can help bridge the gap between current rates and previous lower-rate environments for entry-level buyers. Want to see this home? Call or text George at 713.918.9951 for a private showing. 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