February 2021 Central Texas Housing Market Report

Austin-Round Rock MSA home sales dip following winter storms  

Housing market operating on record-low inventory 

Following the devastating Texas winter storms that thwarted housing market activity for nearly two weeks, Austin-Round Rock MSA home sales dipped for the first time since June 2020. According to the latest Central Texas Housing Market Report released by the Austin Board of REALTORS® (ABoR), Austin-area home sales declined 8% to 2,389 sales in February.  

During the same time, market demand drove housing inventory down 1.2 months to a record-low 0.4 months of inventory and the median home price up 22.5% to an all-time high of $395,000.  

“Although the winter storms slowed activity in February, this does not indicate a market slowdown. We’re still very much in a sellers’ market,” Susan Horton, 2021 ABoR president, said. “Across the region, a high quantity of offers, cash offers, and requests to waive appraisals or option fees are increasingly commonplace. Transaction contracts are complex with negotiations that require the expertise of a REALTOR® to navigate.” 

Across the five-county MSA, home sales dollar volume jumped 15.9% to $1,207,218,785, while pending sales fell 15.5% to 2,573 in February. At the same time, new listings decreased 24.8% to 2,565, and active listings dropped 74.1% to 1,310 listings. Homes spent an average of 31 days on market, 32 fewer days than in February 2020. 

Lawrence Yun, chief economist and senior vice president of research at the National Association of REALTORS®, said while the Austin market has been acutely affected by the lack of inventory, there’s also a nationwide inventory shortage.  

“Until we have more supply, the lack of inventory and prices rising nationwide are going to present challenges for homebuyers everywhere,” Yun said. “Although it’s not visible, mortgage rates will continue to rise throughout the year. Get all your documents and finances prepared early, and realize you may not buy your dream home, but it will be a worthwhile investment,” Yun concluded.  

The storm and its aftermath exacerbated the supply issue the region is experiencing, but Horton says that now is not the time to wait for the market to slow down.

“Anyone interested in buying or selling a home in the next few months should start preparing now by determining what lending options are available to you, any financial or credit changes needed to boost your approval odds, and where you’re flexible in terms of home location and amenities,” concluded Horton. “A REALTOR® can help connect you with a lender and set you up for success through this extremely competitive and increasingly complicated process.” 

City of Austin  

The median sales price in the city of Austin spiked 24.3% to $491,000 in February, an all-time high for any month on record for the city of Austin. Residential sales decreased 4.6% to 834 sales, as sales dollar volume increased 17.3% to $494,005,207. During the same period, new listings decreased 26.5% to 806 listings, while active listings dropped 53.7% to 516 listings, and pending sales decreased 9.3% to 840 pending sales. Monthly housing inventory decreased 0.6 months year over year to 0.5 months of inventory.  

Travis County  

In Travis County, residential sales decreased 2.3% to 1,287 sales, while sales dollar volume rose 26.7% to $777,811,342. The median price for residential homes increased 25.3% year over year to $470,000. During the same period, new listings decreased 28.1% to 1,271 listings, active listings plummeted 64.8% to 765 listings, and pending sales decreased 17.8% to 1,276 pending sales. Monthly housing inventory fell 0.8 months year over year to 0.5 months of inventory.  

Williamson County  

In February in Williamson County, residential sales decreased 25% to 668 sales, and sales dollar volume decreased 8.9% to $263,288,331. The median price increased 25.9% to $364,950. During the same period, new listings fell 22.1% to 828 listings, while active listings tumbled 83.9% to 271 listings. Pending sales decreased 20.3% to 789 pending sales. Housing inventory declined 1.3 months year over year to 0.3 months of inventory.  

Hays County  

In Hays County, February home sales steadily increased 9.8% to 313 sales, and sales dollar volume increased 15.1% to $129,092,500. The median price for homes increased 7.1% to $301,000. During the same period, new listings declined 16.7% to 339 listings, while active listings fell 79.6% to 161 listings. Compared to February 2020, pending sales decreased 6.6% to 354 pending sales. Housing inventory decreased by 1.9 months to 0.4 months of inventory.  

Bastrop County  

In February, Bastrop County home sales increased 28.8% to 103 sales, and sales dollar volume rose 52.3% to $32,435,443. The median price for residential homes experienced a double-digit increase of 12.2% to $274,946. During the same period, new listings declined 17% to 112 listings, while active listings fell 75.2% to 82 listings. Pending sales increased 33% to 129 pending sales. Housing inventory decreased by 2.8 months to 0.7 months of inventory.   

Caldwell County  

In Caldwell County, February home sales decreased 28% to 18 sales, and sales dollar volume decreased 32.7% to $3,734,524. The median home price decreased 3.4% year over year to $199,900. During the same period, new listings tumbled 60.5% to 15 listings, while active listings dropped 65.6% to 31 listings. Pending sales slightly increased 4.2% to 25 pending sales. Housing inventory decreased 2.4 months to 1.1 months of inventory.   

Bell County

In Bell County, February home sales decreased 20% to 3430 sales, and sales dollar volume deceased 11% to $78,456,782. The median price for homes increased 8% to $190,000. During the same period, new listings declined 26% to 542 listings, while active listings fell 52% to 1058 listings. 

For more information or to download the February 2021 Central Texas Housing Market Report, visit ABoR.com/MarketStatistics. Information taken from the Austin Board of Realtors February 2021 Central Texas Housing Market Report and the CTXMLS

January 2021 Central Texas Housing Market Report

Homes sales jump 23.9% in January

Impact from winter storms likely to increase housing demand 

Austin-Round Rock MSA home sales jumped 23.9% to 2,523 sales in January, according to the latest Central Texas Housing Market Report.

“The last week has shown us, once again, that our homes are more important than ever,” Susan Horton, 2021 ABoR president, said. “Austin REALTORS® are not just local market experts in buying or selling a home but we can also provide guidance and resources for home repairs if your current home has been impacted by the winter storms. If you are currently in process of buying or selling a home, talk to your REALTOR® about how recent events might impact your closing timeline and what the appropriate next steps should be – this can include insurance policy terms or additional inspections that may be required.”

Across the five-county MSA, home sales dollar volume skyrocketed 53.5% to $1,161,692,362 while pending sales increased 15.9% to 3,365 in January. Despite 2,878 new listings in January—an 11% decline from 2020—active listings dropped 73.9% to only 1,369 properties across the region. Housing inventory fell 1.3 months to a record-low 0.4 months of inventory as homes spent an average of 33 days on market, 33 fewer days than in 2020.

Vaike O’Grady, regional director with Zonda, said that high demand across all price classes, housing types and geographies means that low inventory and a lightning-fast market conditions are not going away soon.

“There is strength across every price point and demand for every product,” O’Grady said. “Despite developers building as quickly as they can throughout the region and more than 6,000 homesites projected to come online within the next six months, the overall number of lots in development is only just able to keep up with current demand. This means that homes will continue to sell as soon as they hit the market, and prices will continue to rise steadily in the months to come.”

Horton added that the recent winter storms are only likely to increase housing demand in Central Texas, emphasizing the importance of working with a REALTOR® to buy, sell, or rent a home.

“While it will be weeks before we know the full impact of the winter storms on our communities, the disruption in transactions and the high demand for repair services will further complicate an already complex housing market. It is of the upmost importance to have a REALTOR® on your side to help you understand all options available to you. That includes down payment resources and ways that you can bridge the gap between selling your home and buying your next one.”

City of Austin

In January, residential sales increased 23.8% to 811 sales, a record for the month of January, as sales dollar volume jumped 58% to $466,444,738. The median sales price in the city of Austin rose 19.7% to $455,000, a record for the month of January. During the same period, new listings decreased by 7% to 956 listings, while active listings fell 46.9% to 589 listings, and pending sales jumped 14.8% to 1,066 pending sales. Monthly housing inventory decreased 0.6 months year over year to 0.5 months of inventory.

Travis County 

In Travis County, residential sales increased 23.5% to 1,292 sales, while sales dollar volume spiked 60% to $718,269,389. The median price for residential homes rose 22.2% year over year to $427,750. Last month, new listings declined 12.7% to 1,411 listings as active listings dropped 63.5% to 819 listings, and pending sales jumped 10.1% to 1,576 pending sales. Monthly housing inventory fell 0.9 months year over year to 0.5 months of inventory.  

Williamson County  

In January in Williamson County, residential sales increased 11.2% to 763 sales, and sales dollar volume jumped 28.7% to $272,029,213. The median price increased 16.4% to $322,750. During the same period, new listings declined 14.9% to 921 listings, while active listings tumbled 85.9% to 252 listings. Pending sales increased 5.3% to 1,059 pending sales. Housing inventory declined 1.5 months year over year to 0.2 months of inventory.  

Hays County  

In Hays County, January home sales increased 50% to 324 sales, and sales dollar volume spiked 78.2% to $128,186,266. The median price for homes increased 18.1% to $301,250. During the same period, new listings decreased 4% to 360 listings, while active listings fell 80.8% to 156 listings. Compared to January 2020, pending sales increased 40.4% to 483 pending sales. Housing inventory decreased by 2 months to 0.4 months of inventory.  

Bastrop County  

In January, Bastrop County home sales climbed 66.7% to 115 sales, and sales dollar volume increased 81% to $34,195,517. The median price for residential homes increased 10% to $265,000, as new listings increased 29% to 160 listings and active listings declined 70.7% to 93 listings. Pending sales skyrocketed 151.7% to 224 pending sales and inventory decreased by 2.6 months to 0.8 months of inventory.   

Caldwell County  

In Caldwell County, January home sales increased 45% to 29 sales and sales dollar volume increased 45.7% to $8,217,616. The median home price increased 10.6% year over year to $257,450. During the same period, new listings fell 29.7% to 26 listings, while active listings dropped 44.9% to 49 listings. Pending sales also declined 28.1% to 23 pending sales, as housing inventory decreased 1.9 months to 1.6 months of inventory.   

For more information or to download the January 2021 Central Texas Housing Market Report, visit ABoR.com/MarketStatistics. All information taken from the Austin Board of Realtors January 2021 Central Texas Housing Market Report.

November 2020 Central Texas Housing Market Report

Austin on pace to break housing records

Housing Inventory Drops to All-Time Low

AUSTIN, Texas – The Austin-Round Rock Metropolitan Statistical Area (MSA) posted a record-breaking month of sales this November, according to the latest Central Texas Housing Market Report released by the Austin Board of REALTORS® (ABoR). MSA home sales jumped 23.8% year over year to 3,397 sales, indicating no sign of a typical season slowdown heading into the new year. 

Additionally, the median price across the MSA increased 19.7% to $365,000, and sales dollar volume spiked 49.3% to $1,576,178,429. At the same time, new listings increased 5.7% to 2,762 listings, active listings dropped 55.2% to 2,842 listings and pending sales increased 23.9% to 3,269 pending sales. For the first time ever, housing inventory dipped below one month across the five-county MSA, falling 1.2 months year over year to 0.9 months of inventory.   

“Despite the economic roadblocks and challenges the global pandemic has presented, Austin’s housing market activity is stronger than it’s been in several years,” Romeo Manzanilla, 2020 ABoR president, said. “Housing demand has only increased over the past several months and Austin REALTORS® are working hard to ensure clients find a home that works for them. Our main challenge in this market is navigating the critically low levels of inventory. This near-zero level of housing inventory throughout the region is staggering, and it will put enormous pressure on home prices and the rental market.” 

November 2020 marks an all-time low for housing inventory throughout the region and the first time that inventory across the five-county MSA has dipped below one month. The Real Estate Center at Texas A&M University estimates 6.5 months of inventory as a balanced housing market.  

“With a steady influx of job creation in the pipeline, the housing market will continue to post strong numbers well into 2021,” Mark Sprague, state director of information capital at Independence Title, said. “But, because Austin’s housing market is not slowing down, we will continue to see demand outpace the inventory available. This growth is not sustainable. The one variable that will hold the market back is the lack of inventory.” 

“While we’re grateful that the housing market rapidly recovered, last month’s numbers should give us all pause,” Manzanilla concluded. “Central Texans who could not find a property within Austin’s city limits have historically been able to expand their searches outward to find a home. But, when the entire region has virtually zero inventory, its leaders must think about how such a broad lack of housing will ultimately impact Austin’s suitability as a destination for businesses and economic growth.” 

City of Austin  

The median sales price in the city of Austin rose 10.1% to $433,493 in November. Residential sales increased 28.2% to 1,105 sales, as sales dollar volume jumped 47.2% to $600,496,127. During the same period, new listings increased 9.9% to 897 listings, while active listings decreased 28.2% to 1,064 listings, and pending sales jumped 16.8% to 1,038 pending sales. Monthly housing inventory decreased 0.4 months year over year to 1.0 months of inventory.  

Travis County  

In Travis County, residential sales increased 25.2% to 1,720 sales, while sales dollar volume spiked 54.6% to $961,793,770. The median price for residential homes rose 19.7% year over year to $425,000. During the same period, new listings increased 8.2% to 1,388 listings, active listings decreased 47.2% to 1,523 listings, and pending sales jumped 22.4% to 1,642 pending sales. Monthly housing inventory fell 0.9 months year over year to 0.9 months of inventory.  

Williamson County  

In November in Williamson County, residential sales increased 19.8% to 1,127 sales, and sales dollar volume jumped 38.4% to $404,718,496. The median price increased 18% to $326,725. During the same period, new listings slightly increased 2.2% to 903 listings, while active listings tumbled 71.8% to 604 listings. Pending sales increased 12.2% to 1,046 pending sales. Housing inventory declined 1.6 months year over year to 0.5 months of inventory.  

Hays County  

In Hays County, November home sales increased 30.4% to 403 sales, and sales dollar volume spiked 54.6% to $170,600,406. The median price for homes increased 18.5% to $303,525. During the same period, new listings increased 6% to 338 listings, while active listings fell 50.7% to 439 listings. Compared to November 2019, pending sales soared 54.6% to 422 pending sales. Housing inventory decreased by 1.6 months to 1.1 months of inventory.

Bastrop County  

In November, Bastrop County home sales climbed 14% to 114 sales, and sales dollar volume increased 17.4% to $31,303,538. The median price for residential homes increased 6.4% to $260,950. During the same period, new listings slightly increased 2.8% to 109 listings, while active listings dropped 37.7% to 208 listings. Pending sales skyrocketed 81.4% to 127 pending sales. Housing inventory decreased by 1.7 months to 1.9 months of inventory.   

Caldwell County  

In Caldwell County, November home sales increased 65% to 33 sales, and sales dollar volume increased 70.4% to $6,961,699. The median home price increased 11.4% year over year to $204,750. During the same period, new listings rose 14.3% to 24 listings, while active listings dropped 32% to 68 listings. Pending sales jumped 52.4% to 32 pending sales. Housing inventory decreased 1.5 months to 2.5 months of inventory.   

For more information or to download the November 2020 Central Texas Housing Market Report, visit ABoR.com/MarketStatistics. All information taken from the Austin Board of Realtors November 2020 Central Texas Housing Market Report.

October 2020 Central Texas Housing Market Report

Central Texas housing market continues strong sales growth

The Austin-Round Rock Metropolitan Statistical Area (MSA) posted another strong month of sales growth, according to the October 2020 Central Texas Housing Market Report released by the Austin Board of REALTORS® (ABoR). The MSA experienced a 29.4% increase to 3,780 in October home sales year over year, while homes continued to sell faster and at higher price points than ever before.

In addition to a third-consecutive month of double-digit home sales growth, median sales price increased 13.2% to $365,000, an all-time record, and sales dollar volume skyrocketed 55.3% to $1,778,706,460. Pending sales jumped 28.8% to 3,829; new listings increased 10.2% to 3,747; while active listings fell 50.3% to 3,501 sales. Homes spent an average of 35 days on market, 19 fewer days than in October 2019, and inventory fell 1.2 months to 1.1 months across the five-county area.

“The continued stability and strength of our market will be crucial heading into 2021. As we come to the end of a challenging year, I’m proud of the work that Austin REALTORS® have done to stabilize and grow our market,” Romeo Manzanilla, 2020 ABoR president, said. “While the full impact remains to be seen, the passage of Propositions A & B in Austin will increase the property tax bill homeowners receive over the next few weeks. Combined with rising home values, increasing demand and limited inventory, homeowners should be prepared for their property taxes to continue to increase regardless of tax rates.”

The Greater Austin Chamber of Commerce expressed a positive outlook for the local economy and job market for 2021 but echoed concerns around housing affordability and accessibility.

“Austin’s rank as one of the best places to live, work, and thrive in the country is evident by not only the growth of our housing market, but also by the growth of our local economy,” Laura Huffman, president and CEO of the Austin Chamber of Commerce, said. “Our region has a lower year-over-year job loss than any other major metro, and despite the pandemic, a record number of businesses have chosen to relocate to or expand in the region this year. We expect this growth—attributed to Texas’ business-friendly environment paired with Austin’s deep talent pool—will continue through 2021. Despite this, in 2021 the region needs to address housing affordability to help people from being priced out of the market, even as salary and job growth continues.”

“With a major transportation solution for our region now in place, we expect Austin City Council will turn their attention to the housing affordability crisis, which has only worsened during the pandemic,” added Manzanilla. “The Austin Board of REALTORS® looks forward to collaborating with both new and returning Council Members on ways to address this important issue.”

City of Austin

The median sales price in the city of Austin set an all-time record, rising 13.1% to $441,250 in October. Residential sales increased 22.7% to 1,224 sales, as sales dollar volume soared 52.6% to $705,053,179. During the same period, new listings increased 19.7% to 1,345 listings while active listings decreased 23.6% to 1,349 listings, and pending sales jumped 29.8% to 1,221 pending sales. Monthly housing inventory decreased 0.4 months year over year to 1.3 months of inventory.

Travis County

In Travis County, residential sales increased 22.4% to 1,921 sales, while sales dollar volume jumped 54.2% to $1,105,700,927. The median price for residential homes climbed 16.2% year over year to $430,000. During the same period, new listings increased 14.9% to 2,008 listings, active listings decreased 41.8% to 1,932 listings, and pending sales rose 29.9% to 1,931 pending sales. Monthly housing inventory fell 0.9 months year over year to 1.2 months of inventory.

Williamson County

In October in Williamson County, residential sales jumped 36.9% to 1,265 sales, and sales dollar volume skyrocketed 52.6% to $450,779,835. The median price increased 11.4% to $323,115. During the same period, new listings slightly increased 1.2% to 1,135 listings, while active listings dropped 67.9% to 750 listings. Pending sales jumped 21.5% to 1,248 pending sales. Housing inventory declined 1.6 months year over year to 0.7 months of inventory.

Hays County

In Hays County, October home sales increased 38% to 432 sales, and sales dollar volume increased 64.2% to $169,973,568. The median price for homes increased 11.9% to $305,000. During the same period, new listings rose 5.3% to 395 listings, while active listings fell 44.9% to 519 listings. Compared to October 2019, pending sales soared 38.3% to 451 pending sales. Housing inventory dropped by 1.6 months to 1.3 months of inventory.

Bastrop County

Last month, Bastrop County home sales jumped 54.2% to 128 sales, and sales dollar volume soared 84.4% to $41,431,066. The median price for residential homes increased 6% to $265,000. During the same period,
new listings increased 35.5% to 164 listings, while active listings declined 33.3% to 224 listings. Pending sales increased 57.1% to 165 pending sales. Housing inventory decreased by 1.6 months to 2.1 months of inventory.

Caldwell County

In Caldwell County, October home sales increased 9.7% to 34 sales, and sales dollar volume increased by 33.4% to $8,855,872. The median home price increased 26.7% year over year to $245,000. During the same period, new listings rose 36.4% to 45 listings, while active listings fell 29.6% to 76 listings. Pending sales rose 21.4% to 34 pending sales. Housing inventory decreased 1.6 months to 2.8 months of inventory.

For more information or to download the October 2020 Central Texas Housing Market Report, visit https://www.abor.com/october-2020-central-texas-housing-market-report. All information taken from the Austin Board of Realtors October 2020 Central Texas Housing Market Report.