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

December 2020 Central Texas Housing Market Report

Austin-Round Rock MSA closes year with record-breaking  $17B housing market 

Housing demand across Central Texas soars to all-time high 

AUSTIN, Texas – The Austin-Round Rock Metropolitan Statistical Area (MSA) closed 2020 by breaking records as housing demand across the region reached unprecedented levels. According to the December 2020 and Year-End Central Texas Housing Market Report released by the Austin Board of REALTORS® (ABoR), a record-breaking 40,165 homes totaling $17,579,802,503 in sales volume were sold across the Austin area last year.  

In December alone, residential home sales across the five-county MSA jumped 16.2% year over year to 3,626 sales, a record for the month of December, and the median price increased by 15.8% to 370,000, an all-time record for the MSA. Sales dollar volume in December also increased 41.1% to $1,784,023,513 and pending sales increased 40.8% to 3,114. Housing inventory declined 1.1 months to a record-low 0.6 months of inventory for the entire MSA. Homes spent an average of 36 days on market, 25 fewer than December 2019. 

“This is a historical and unprecedented time for our housing market,” Susan Horton, 2021 ABoR president, said. “The pandemic only increased demand for all types of housing across the region, pushing inventory to near-zero levels and creating the strongest sellers’ market REALTORS® have ever seen. That said, if you are ready to buy a home, now is the time to take advantage of low interest rates that boost your buying power and plant roots in Central Texas.”   

Dr. James Gaines, former chief economist for the Texas Real Estate Research Center, attributes Austin’s record-high housing demand to a perfect storm of economic growth and increased consumer buying power. 

“The Austin-area real estate market is experiencing extraordinarily high demand fueled by years of high population growth and employment gains, lifestyle changes following the pandemic and record-low interest rates,” Gaines said. “The pandemic fostered an environment where many families increased personal savings helping some transition from renting to ownership while others needed to ‘move up’ for more space while working from home. Despite a steep slowdown during shelter-in-place orders this spring, the market came roaring back in the summer with no drop-off at the end of the calendar year.”  

Gaines added that the outlook for the 2021 housing market was very good, noting that Austin’s demand-driven market will continue to show strength and homes will keep selling quickly.  

In 2020, the median sales price in the Austin-Round Rock MSA rose 9.2% to $344,000. During this year, new listings decreased 0.4% to 43,816 listings, while active listings declined 34.2% to 4,556 listings. However, pending sales jumped 13.1% to 42,371 pending sales. Pending sales are now outpacing new listings, indicating that homes are selling faster than new ones can hit the market.  

“The Central Texas housing market is incredibly competitive and moving at lightning speed right now,” Horton added. “The complexity of a home sale is at an all-time high as it has become commonplace for homes to receive multiple offers well over list price. Whether you’re a homebuyer or a home seller, it is more important than ever to work with a REALTOR® who deeply understands your local area and can navigate the near-zero inventory market on your behalf.” 

City of Austin 

In 2020, residential home sales in the City of Austin increased 1.7% to 12,745 sales, an all-time record, while sales dollar volume jumped 16.3% to $6,746,602,345. The median sales price for residential homes rose 12% year over year to 420,000 this past year, also an all-time record. New listings slightly increased 1.1% to 14,735 listings while active listings dropped 23.8% to 1,332 listings, and pending sales increased 3.8% to 13,062 pending sales.  

In December 2020, the median sales price in the city of Austin rose 18.7% to $461,000, an all-time monthly record. Residential sales increased 16.4% to 1,191 sales, a record for the month of December in any year, as sales dollar volume jumped 43.1% to $711,984,698. During the same period, new listings jumped 31.3% to 755 listings, while active listings decreased 33.6% to 753 listings, and pending sales jumped 31.1% to 928 pending sales. Monthly housing inventory decreased 0.4 months year over year to 0.7 months of inventory. The City of Austin now has a higher inventory than surrounding markets like Williamson County, which is historically not the case.  

Travis County

During 2020, residential home sales increased 4.3% to 20,081 sales, while sales dollar volume rose 19% to $10,663,700,312. The median price for residential homes increased 12% year over year to $405,000. This past year, new listings declined 1% to 22,744 listings and active listings dropped 32.6% to 2,226 listings. However, pending sales increased 8.1% to 20,986 pending sales.  

In December, residential home sales increased 18.1% to 1,885 as sales dollar volume in Travis County spiked 46.5% to $1,137,805,715.  Additionally, the median price rose 20.2% year over year to $435,000. During the same period, new listings jumped 29.5% to 1,216 listings while active listings dropped 54.9% to 1,038 listings, and pending sales increased 38.6% to 1,537 pending sales. Monthly housing inventory fell 0.8 months year over year to 0.6 months of inventory.  

Williamson County

In 2020 in Williamson County, home sales increased 9.1% to 13,523 sales, and sales dollar volume rose 17.7% to $4,603,742,735. The median price for homes increased 7.7% to $307,000. New listings dropped 2.9% to 13,794 and active listings fell 41.4% to 1,322 listings in 2020. However, pending sales increased 12.6% to 14,158 pending sales. 

During the month of December, residential sales in Williamson County increased 4.1% to 1,152 sales, and sales dollar volume jumped 20.4% to $424,133,483. The median price increased 14.3% to $326,650. In December, new listings jumped 15.6% to 784 listings, while active listings tumbled 77.8% to 405 listings. Pending sales increased 24.9% to 987 pending sales. Housing inventory declined 1.4 months year over year to 0.4 months of inventory, which is the lowest inventory in the MSA.  

Hays County

During 2020, Hays County home sales increased 21.9% to 4,864 sales, and sales dollar volume rose 36.8% to $1,833,669,611. The median price for homes increased 10.9% to $295,000. This past year, new listings increased 6.6% to 5,220 listings, while active listings fell 30.3% to 657 listings compared to 2019. Pending sales increased 31.7% to 5,330 pending sales.  

December 2020 home sales in Hays County increased 35.6% to 423 sales, and sales dollar volume spiked 60% to $170,517,335. The median price for homes increased 17.5% to $314,900. During the same period, new listings increased 11.6% to 279 listings, while active listings dropped 64.8% to 297 listings. However, pending sales soared 73.5% to 399 pending sales. Housing inventory decreased by 1.8 months to 0.7 months of inventory.  

Bastrop County

In 2020 in Bastrop County, home sales increased 20.8% to 1,350 sales, and sales dollar volume rose 35.1% to $395,575,892. The median price for homes increased 10% to $263,000. New listings increased 9.3% to 1,654 listings while active listings fell 15.3% to 272 listings. However, pending sales jumped 34.6% to 1,524.  

In December, Bastrop County home sales climbed 57.5% to 137 sales, and sales dollar volume soared 72.4% to $42,432,735. The median price for residential homes increased 13.5% to $269,000. During the same period, new listings jumped 58.1% to 117 listings, while active listings dropped 44.9% to 163 listings. Pending sales skyrocketed 126.9% to 152 pending sales. Housing inventory decreased by 1.8 months to 1.4 months of inventory.  

Caldwell County

Last year in Caldwell County, the median price increased 7.1% year over year to $212,500. Residential home sales increased 15.7% to 347 sales, and sales dollar volume jumped 23.9% to $82,877,777. New listings slightly dropped 1.9% to 404 listings and active listings decreased 20.4% to 78 listings. At the same time, pending sales jumped 24.3% to 373 pending sales in 2020.  

In Caldwell County, December home sales increased 61.1% to 29 sales as sales dollar volume increased 58.3% to $7,325,243. The median home price increased 3.8% year over year to $212,850. During the same period, new listings climbed 47.1% to 25 listings, while active listings dropped 45.7% to 51 listings. Pending sales soared 160% to 39 pending sales. Housing inventory decreased 2.0 months to 1.8 months of inventory.   

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