First-time homebuyers are propelling Georgetown’s real estate market, especially at the midrange price level, while repeat buyers face high interest rates, local Realtor Tanya Kerr said.
The big picture
More than a quarter of April sales across Georgetown’s three area ZIP codes were in the $300,000-$399,999 price range—a market typically saturated with first-time homebuyers.
Data from ICE Mortgage Technology shows roughly 51.5% of U.S. mortgage holders have a rate below 4%, while the current 30-year fixed average rate is 6.37%, according to Federal Reserve data. For a move-up buyer trading in their starter home, that means surrendering a low rate and taking on higher property taxes and insurance.
“The pain for that buyer to leave their current home must be strong enough that they’re willing to give that up,” said Kerr, with T. Kerr Property Group under Keller Williams Realty.
By the numbers
Georgetown’s 2026 median prices opened lower than prior years and fell in February, hitting $404,990 compared to roughly $450,000–$457,000 in the same month in 2024 and 2025, according to data from Unlock MLS.
Kerr pointed to January and February as the inflection point, when sellers grew anxious about incoming spring inventory and began dropping prices aggressively. Prices have partially recovered but remain below prior-year levels.
“Buyers are still out there,” Kerr said. “They’re still willing to buy, but they are not willing to overpay. You better make it worth their while.”
East Georgetown homes sold in half the time as properties west of I-35. The difference lies in price point: east side homes at a $360,000 median attract first-time buyers, while the southwest’s $556,000 median targets move-up buyers.
Median prices reflect the middle of the market, unaffected by outliers at either end, while averages can be skewed by a single transaction.
The gap between them reveals how wide the range of home prices is in each ZIP code, Kerr said. A larger gap means luxury sales are pulling the average up.
ZIP code 78633 shows the widest gap between median and average price at $77,332, or 18.4%, reflecting luxury and Sun City activity.
The outlook
Real estate data through spring 2026 reflects a market in correction, not collapse, Kerr said.
Data from Unlock MLS shows sales in the Georgetown area are up 4.1% from this time last year, but median prices have dropped as buyers are refusing to overpay, Kerr said.
Inventory should continue rising through spring and summer, she said. Federal Reserve rate changes could significantly impact move-up buyers, but first-time homebuyers will likely continue to drive activity in the midrange.
“They’re the ones that create movement because they’re not locked into a low interest rate and they’re making the leap from renting to owning,” Kerr said.
