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September 2020 Central Texas Housing Market Report

Central Texas housing market continues to soar despite low inventory

According to the latest Central Texas Housing Market Report released by the Austin Board of REALTORS® (ABoR), the Central Texas housing market continues to exhibit strength despite economic challenges and shrinking housing inventory. In September, home sales across the Austin-Round Rock MSA soared 31.5% year over year to 3,892 sales. Historically this time of year home sales are slower, but because of decreased activity during the shelter-in-place orders due to the COVID-19 pandemic, the summer selling season extended into September.

The market’s strength was evident across the five-county MSA as sales dollar volume jumped 51.7% to $1,779,067,529, and the median price rose 12.1% to $355,000. New listings increased 5.0% to 3,539 listings, and pending sales jumped 28.2% to 3,767. At the same time, active listings dropped 49.9% to 3,708 listings.

September 2020 Austin Real Estate Market Statistics“The housing market is pumping billions of dollars into our region’s economy at a time it’s greatly needed, but we also need to be cognizant of the impact such rapid activity is having on record-low inventory levels and rising home prices,” Romeo Manzanilla, 2020 ABoR president said. “Austin’s suburban markets have historically offered housing stock at lower price points that created opportunity for people when buying or renting inside Austin city limits was not an option. Now, these markets are showing the same gains in prices and declines in inventory as we’re used to seeing inside Austin, putting pressure on the market as a whole.”

Homes across the MSA spent an average of 37 days on the market, 14 fewer days than September 2019, and housing inventory decreased 1.3 months to 1.2 months of inventory.

Vaike O’Grady, Austin regional director for Zonda (formerly Metrostudy), said the city of Austin has a limited number of residential lots. This is forcing developers to move to the suburbs where land is more available and less expensive. When it comes to construction in suburban markets, homes simply can’t be put on the ground fast enough to meet demand.

“We need to remove the barriers to new construction and open up more building opportunities across the region to create more inventory for buyers,” O’Grady said. “Austin’s economy is bouncing back better than most cities, allowing more people to make a move to a home that meets their needs. To solve Austin’s housing supply and affordability challenges, we need to commit to streamlined review and approval processes for new construction.”

“The Austin area needs more housing supply at all price points in order to stabilize home price growth and help make homeownership accessible, especially for first-time homebuyers,” Manzanilla said. “REALTORS® will continue working aggressively to navigate a competitive, fast-moving housing market on behalf of their clients.”

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City of Austin

Low levels of inventory in the city of Austin drove the median home price up 8.7% year over year to $415,500. Residential sales increased 20.7% to 1,248 sales, as sales dollar volume spiked 39.2% to $678,062,256. During the same period, new listings increased 16.4% to 1,273 listings, active listings decreased 24% to 1,390 listings, and pending sales increased 16.6% to 1,164 pending sales. Monthly housing inventory decreased 0.4 months year over year to 1.4 months of inventory.

Travis County

At the county level, residential sales increased 27.1% to 1,930 sales, while sales dollar volume jumped 50% to $1,081,018,324. The median price for residential homes increased 13.8% year over year to $420,000. During the same period, new listings increased 8.4% to 1,863 listings, while active listings declined 41.8% to 2,039 listings. At the same time, pending sales rose 18.4% to 1,836 pending sales. Monthly housing inventory fell .9 months year over year to 1.3 months of inventory.

Williamson County

In Williamson County, September residential sales increased 29.4% to 1,306 sales, and sales dollar volume jumped 43.8% to $461,491,699. The median price rose 9% to $318,050. During the same period, new listings dropped 10.2% to 1,035 listings, and active listings tumbled 66.5% to 816 listings. Pending sales jumped 33.7% to 1,266 pending sales. Housing inventory declined 1.6 months year over year to .8 months of inventory.

Hays County

September home sales spiked 50.3% to 487 sales, and sales dollar volume increased 78% to $184,817,195 in Hays County. The median price for homes increased 15.1% to $310,000. During the same period, new listings jumped 40.6% to 485 listings, and active listings tumbled 43.1% to 558 listings. At the same time, pending sales increased 42.9% to 480 pending sales. Housing inventory dropped by 1.5 months to 1.5 months of inventory.

Bastrop County

In September, Bastrop County home sales spiked 69.5% to 139 sales, and sales dollar volume skyrocketed 96.6% to $42,855,211. The median price for residential homes increased 8% to $270,000. During the same period, new listings increased 4.7% to 133 listings, while active listings declined 36.4% to 227 listings. Pending sales rose 84% to 149 pending sales. Housing inventory decreased by 1.7 months to 2.2 months of inventory.

Caldwell County

In Caldwell County, September home sales increased 15.4% to 30 sales, and sales dollar volume increased by 18.3% to $7,000,759. The median home price increased 5.1% year over year to $217,500. During the same period, new listings decreased 17.9% to 23 listings, while active listings decreased 39.3% to 68 listings. Pending sales rose 50% to 36 pending sales. Housing inventory decreased 2.1 months to 2.5 months of inventory. 

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

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August 2020 Central Texas Housing Market Report

Austin-area housing market remains undeterred amid ongoing pandemic

AUSTIN, Texas—As the summer-selling season comes to a close, the Austin Board of REALTORS® (ABoR) latest Central Texas Housing Market Report indicates the Austin-area housing market continues to exhibit strength, despite economic setbacks amid the ongoing pandemic. The Austin-Round Rock MSA posted robust gains this August, as home sales experienced a double-digit increase of 12.9% year over year to 4,019 sales. 

In addition to an increase in home sales across the five-county MSA, sales dollar volume jumped 35.3% to $1,889,382,006, and the median price rose 11.3% to $355,000. New listings slightly increased 1% to 3,862 listings, and pending sales soared 40.1% to 4,533. At the same time, active listings dropped 44.9% to 4,257 listings. 

“The pandemic has put our market in a unique situation. As more people are working from home and have the opportunity to relocate, Austin-area homes are selling faster now than ever before,” Romeo Manzanilla, 2020 ABoR president, said. “Austin’s popularity has left the market with critically low levels of housing supply, which continues to drive home prices up. While home prices are rising, historically low interest rates are giving buyers increased power to meet the increases. Buyers should be aware of just how competitive this market has become, and would benefit enlisting the help of a REALTOR® who can help every step of the way during the homebuying process.”

Homes across the MSA spent an average of 42 days on the market, 10 days fewer days than August 2019, and housing inventory decreased 1.2 months to 1.4 months of inventory, well below the Real Estate Center at Texas A&M University’s benchmark of 6.0 months to maintain a balanced housing market. 

Mark Sprague, state director of information capital at Independence Title, said that although Austin-area home sales dipped in the early Spring, the region’s real estate market as a whole has endured. 

“It’s safe to say that August numbers solidify that Austin’s housing market has fully rebounded,” Sprague said. “And, as long as we continue to see more job creation, we’ll likely see strong home sales throughout the remainder of the year. However, we started this year with a lack of inventory, and we’re going to end this year with a lack of inventory. Inadequate housing stock is going to be the main issue that holds the market back.” 

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City of Austin

In the city of Austin, critically low levels of inventory drove the median home price up 14.9% year over year to $435,000—an all-time high for any month on record. Residential sales barely increased 2.4% to 1,240 sales, as sales dollar volume jumped 19.9% to $682,748,453. During the same period, new listings increased 4.8% to 1,318 listings, active listings decreased 26.6% to 1,468 listings, and pending sales increased 20.6% to 1,314 pending sales. Monthly housing inventory decreased 0.5 months year over year to 1.5 months of inventory. 

Travis County

At the county level, residential sales increased 9.2% to 2,015 sales, while sales dollar volume spiked 39.9% to $1,182,976,984. The median price for residential homes increased 19.2% year over year to $430,000. During the same period, new listings slightly increased 1% to 2,046 listings, while active listings declined 41% to 2,253 listings. At the same time, pending sales rose 34.6% to 2,229 pending sales. Monthly housing inventory decreased 1.1 months year over year to 1.4 months of inventory. 

Williamson County

In Williamson County, August residential sales increased 13.5% to 1,343 sales, and sales dollar volume increased 23.1% to $467,254,216. The median price rose 5.7% to $307,500. During the same period, new listings decreased 6.3% to 1,154 listings, and active listings dropped 54% to 1,111 listings. Pending sales jumped 33.7% to 1,487 pending sales. Housing inventory declined 1.4 months year over year to 1.1 months of inventory. 

Hays County

In Hays County, August home sales spiked 31.7% to 499 sales, and sales dollar volume increased 45% to $192,109,298. The median price for homes increased 16.9% to $308,500. During the same period, new listings increased 12.6% to 475 listings, and active listings tumbled 46.4% to 556 listings. At the same time, pending sales skyrocketed 69.7% to 577 pending sales. Housing inventory decreased 1.7 months to 1.5 months of inventory. 

Bastrop County

In August, Bastrop County home sales increased 4.1% to 126 sales, and sales dollar volume increased 23.8% to $38,193,673. The median price for residential homes increased 16% to $278,500. During the same period, new listings jumped 29.7% to 144 listings, while active listings declined 24.4% to 260 listings. Pending sales spiked 98% to 200 pending sales. Housing inventory decreased by 1.0 months to 2.7 months of inventory.  

Caldwell County

In Caldwell County, August home sales increased 16.1% to 36 sales, and sales dollar volume increased by 7.4% to $8,392,577. The median home price dropped 1.7% year over year to $212,900. During the same period, new listings increased 19.4% to 43 listings, while active listings decreased 27.4% to 77 listings. Pending sales rose 53.9% to 40 pending sales. Housing inventory decreased 1.5 months to 2.9 months of inventory.  

For more information or to download the August 2020 Central Texas Housing Market Report, visit https://www.abor.com/statsaug20/. All information taken from the Austin Board of Realtors August 2020 Central Texas Housing Market Report,

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July 2020 Central Texas Housing Market Report

Housing market continues to bounce back; real estate is vital to early economic recovery

AUSTIN, Texas—According to the latest Central Texas Housing Market Report released by the Austin Board of REALTORS® (ABoR), the Austin-Round Rock Metropolitan Statistical Area (MSA) continues to exhibit resiliency in the face of COVID-19. The MSA posted its second consecutive month of strong home sales numbers with a 21.5% increase in July sales year over year. The robust increase demonstrates the vital role real estate will play as the region begins its economic recovery from the COVID-19 pandemic. 

In addition to the 21.5% jump to 4,537 home sales across the five-county MSA, the median price increased 10.7% to $353,000 and sales dollar volume also soared 36.7% to $2,037,152,035. Pending sales climbed 32.2% to 4,607 as new listings increased 13% to 4,767, while active listings dropped 32.4% to 5,309 due to demand. 

“July was a very encouraging month for the Central Texas housing market,” Romeo Manzanilla, 2020 ABoR president, said. “Strong home sales, combined with an increase in new listings and pending sales, are important benchmarks when analyzing the health of our market. A healthy housing marketing is vital to the overall economic recovery in the region, and with two consecutive months of positive numbers, we are growing more confident that this is sustainable and can help be the spark that gets our economy back on track.” 

Homes across the MSA spent an average of 44 days on the market, three fewer days than July 2019, and housing inventory fell by a full month to 1.7 months of inventory. Manzanilla also noted that this extremely low level of inventory, when paired with continued demand across the region, has led to rising home prices, creating a very strong seller’s market. As inventory falls, REALTORS® will continue to work aggressively to research the market and find the properties needed to meet their client’s demands. Prospective buyers should seek out a REALTOR® to work with who can put a strategic offer together in this competitive market. 

“Our market is now ultra-competitive because of our dangerously low inventory and that is cause for concern over the long-term. Homeowners thinking of listing their home need to understand the opportunities in the market and our elected leaders should focus on promoting policies that create increased housing capacity. The jobs pipeline into Austin continues to create new economic opportunities and a double-digit percentage gain in new listings in July, coupled with buyers continuing to take advantage of historically low interest rates, allows us to be cautiously optimistic about the remainder of 2020.” 

The Austin Chamber of Commerce is also optimistic about the region’s attractiveness and is encouraged by recent corporate relocation and expansion announcements. 

“Even amidst the pandemic, Austin still shines as a magnet for companies that appreciate our robust business climate and abundant talent pool,” Laura Huffman, president and CEO of the Austin Chamber of Commerce, said. “Recent economic development successes in the region—notably from Tesla and BAE Systems—will bring thousands of jobs to the region and contribute to our ongoing population growth. Our region has a long way to go in its recovery from the brunt of this pandemic, but economic indicators show the Central Texas economy will weather this storm.” 

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City of Austin

In the city of Austin, there was a 21.4% increase to 1,470 home sales which resulted in $793,610,174 in sales dollar volume, a 41.8% increase. The median price for residential homes increased 11.3% year over year to $423,000. During the same period, new listings jumped  20.4% to 1,676 listings, active listings decreased by 19.1% to 1,653 listings and pending sales rose 25% to 1,413 pending sales. Monthly housing inventory decreased 0.3 months year over year to 1.7 months of inventory.  

Travis County

Travis County saw residential sales increase by 17% to 2,258 sales, and sales dollar volume climbed 34.2% to $1,233,588,708. The median price for residential homes increased 10.3% year over year to $411,412. During the same period, new listings also increased 13.7% to 2,503 listings, while active listings declined 29.6% to 2,697 listings. Pending sales grew by 27.3% to 2,277 pending sales. Monthly housing inventory decreased 0.8 months year over year to 1.7 months of inventory.  

Williamson County

In July, Williamson County residential sales increased by 24.5% to 1,530 sales, and sales dollar volume climbed 34.6% to $523,478,727. The median price increased 10.5% to $314,995. New listings were up 6.5% to 1,450 listings, while active listings fell by 39.1% to 1,524 listings. Pending sales jumped 29.5% to 1,518 pending sales. Housing inventory declined 1.1 months year over year to 1.5 months of inventory. 

Hays County

July residential sales soared 32.8% to 555 sales, and sales dollar volume skyrocketed 59.3% to $224,313,232. The median price for residential homes increased by 18.1% to $310,000. During the same period, new listings experienced a 24.9% increase to 587 listings, and active listings fell 35% to 683 listings. Pending sales jumped 66.5% to 621 pending sales. Housing inventory decreased 1.4 months to 1.9 months of inventory. 

Bastrop County

Bastrop County residential sales increased 28% to 160 sales, while sales dollar volume increased 40.7% to $47,797,443. The median price for residential homes climbed 6.2% to $265,500. During the same period, new listings jumped 31.5% to 192 listings; active listings decreased 10.1% to 329 listings; while pending sales increased 23.5% to 147 pending sales. Housing inventory decreased 0.6 months to 3.4 months of inventory.  

Caldwell County

In July, Caldwell County residential sales increased 3% to 34 sales, and sales dollar volume slightly increased by 1.7% to $7,701,000. The median home price increased 7.3% year over year to $205,000. During the same period, new listings fell 7.9% to 35 listings; active listings decreased 27.6% to 76 listings; while pending sales jumped 33.3% to 44 pending sales. Housing inventory decreased 1.3 months to 2.9 months of inventory.  

For more information or to download the July 2020 Central Texas Housing Market Report, visit http://www.abor.com/statsjul20All information taken from the Austin Board of Realtors May 2020 Central Texas Housing Market Report,

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June 2020 Central Texas Housing Market Report

June home sales rebound across Austin area; sales decline in first half of 2020 due to COVID-19  

AUSTIN, Texas—Home sales in the Austin-Round Rock Metropolitan Statistical Area (MSA) rebounded this June with a 9.3% increase year over year, which helped hold sales to only a 5.2% decline during the first half of 2020 as the market was impacted by COVID-19, according to the Austin Board of REALTORS® (ABoR) June and Midyear Central Texas Housing Market Report. 

Across the five-county MSA in June, residential home sales increased 9.3% year over year to 3,969 sales, and the median price increased by 4.6% to $340,000. Sales dollar volume also increased 13.1% to $1,674,070,282 and pending sales increased by 33.7% to 4,737. Housing inventory declined 0.9 months to 1.8 months of inventory, demonstrating an extremely competitive and tight market across the region, even as it begins to show signs of improvement. 

“Strong home sales in June are good news for the real estate market across the region,” Romeo Manzanilla, 2020 ABoR president, said. “The increased sales last month helped limit the impact of the pandemic on the first half of the year overall. Increased pending sales signal a strong month of sales in July, but we have to remain cautious as Texas experiences a spike in COVID-19 cases and we are seeing shrinking housing inventory.” 

Despite an increase in pending sales, new listings dropped 5.4% to 4,170 listings, and active listings dropped 32.2% to 5,300 listings.  

Manzanilla added, “As listings fell again, REALTORS® continue to help clients stay safe by implementing new precautions, such as virtual showings and enhanced digital floor plans. It’s the perfect time to talk to a REALTOR®, who can help you decide what makes sense for you and your family. If your home needs have changed, there are plenty of potential buyers amid record-low levels of inventory levels across the MSA and a REALTOR® will make finding a new home in a tight market a possibility.” 

James Gaines, chief economist for the Real Estate Center at Texas A&M University, thinks perspective is needed when interpreting the market throughout 2020. 

“There are plenty of unknowns in the months ahead, but June home sales across the MSA being up 9.3% YoY was tremendous when considering the strength of 2019. And while home sales declined throughout the Austin-MSA during the first six months of 2020, we are still on track for a strong year,” Gaines said. 

Gaines noted that while June saw strong numbers throughout all of Texas, Austin’s inventory shortage remains extremely problematic. 

“Extremely low inventory is one of the factors that affects overall sales dollar volume while simultaneously creating a very competitive and tight market. Home builders aren’t building quite as many new homes and sellers were hesitant to list their home during shelter in place orders. Even if we end up with a 3 to 4% decline in sales in 2020, that would still be a strong year for the region.” 

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Austin-Round Rock MSA mid-year performance 

In the first half of 2020, homes sales in the Austin-Round Rock MSA declined 5.2% year over year to 17,043 home sales. Sales dollar volume declined 1.9% to $6,897,765,107, while the median price increased 4.9% to $325,200. So far this year, new listings declined 7.5% to 22,744 new listings; active listings dropped 19.2% to 5,616 listings. However, pending sales slightly increased 2% to 20,389 pending sales.  

City of Austin 

In the City of Austin, home sales in the first half of the year decreased 13.6% year over year to 5,291 sales, while the median price rose 9.7% to $406,000. At the same time, sales dollar volume decreased by 6.2% to $2,621,719,744. New listings dropped 9.7% to 7,498 listings; active listings declined 21.8% to 1,398 listings; and pending sales also fell 8.9% to 6,201 pending sales.  
 
In June 2020, there were 1,163 home sales, down 5.3% year over year. Last month, sales dollar volume inched up by 0.2% to $588,734,242, while the median price slightly increased 3.3% to $407,000. During the same period, new listings decreased 5.3% to 1,448 listings; active listings tumbled 26.4% to 1,520 listings; and pending sales jumped 21.7% to 1,478 sales. Housing inventory decreased 0.4 months to 1.6 months of inventory. 

Travis County 

In Travis County, home sales decreased 10.3% year over year to 8,452 home sales in the first half of the year. During the same period, sales dollar volume dropped 6.5% to $4,078,268,052, as the median price rose by 7% to $385,000. New listings decreased 10.8% to 11,721 listings, and active listings dropped 24% to 2,572 listings. Pending sales also fell 5.3% to 9,976 pending sales.  

In June, home sales decreased 0.8% year over year to 1,935 home sales, while sales dollar volume rose by 4.3% to $980,584,301. During the same period, the median price increased 3.5% to $398,250. New listings declined 8.1% to 2,165 listings; active listings dropped 31.9% to 2,626; while pending sales jumped 22.3% to 2,313 pending sales. Housing inventory fell 0.8 months to 1.7 months of inventory.  

Williamson County 

In Williamson County, home sales in the first half of 2020 declined 3.6% year over year to 5,767 home sales. During the same period, sales dollar volume remained flat at $1,877,370,936, and the median price increased 2.8% to $291,920. New listings decreased 4.8% to 7,325 listings; active listings dropped 19.2% to 1,803 listings; while pending sales increased 6% to 6,958 pending sales.  

In June, home sales increased 16.1% year over year to 1,352 home sales. During the same period, sales dollar volume jumped 21.9% to $458,305,463, and the median price increased 4.9% to $304,090. New listings increased 2.1% to 1,400, while active listings tumbled 35.1% to 1,615 listings. Pending sales spiked 41.7% to 1,605 pending sales. Housing inventory fell 1 month to 1.6 months of inventory.  

Hays County 

In the first half of 2020, Hays County home sales rose 12.2% year over year to 2,137 home sales, and sales dollar volume rose 19.6% to $754,871,620. During the same period, the median price increased 4.9% to $278,995. New listings slightly fell 0.5% to 2,679 listings; active listings declined 10.8% to 822 listings; and pending sales jumped 21.2% to 2,592 pending sales.  

In June, home sales jumped 38.6% year over year to 535 home sales, and sales dollar volume also skyrocketed 48.6% to $193,556,186. During the same period, the median price rose by 6.6% to $287,265. New listings decreased 13.6% to 419 listings; active listings fell 31.6% to 690 listings; and pending sales spiked 60.6% to 604 pending sales. Inventory dropped 1.2 months to 2.0 months of inventory.  

Bastrop County 

In the first half of 2020, Bastrop County home sales increased 2.7% year over year to 539 home sales, and sales dollar volume increased 12.6% to $150,584,845. The median price increased 9.9% to $256,000. During the same period, new listings declined 3.1% to 804 listings, as active listings rose 2.8% to 328 listings. At the same time, pending sales increased 14.2% to 677 pending sales.  
 
In June, home sales increased 7.4% year over year to 116 home sales, and sales dollar volume climbed 16.2% to $33,337,768. At the same time, the median price increased 14% to $268,000. New listings dropped 0.7% to 148 listings; active listings fell 20.4% to 288; while pending sales jumped 52.3% to 169 pending sales. Inventory declined 1.1 months to 3.0 months of inventory. 

Caldwell County 

In the first half of 2020, Caldwell County home sales increased 5% year over year to 148 home sales, and sales dollar volume increased 21% to $36,639,286. The median price climbed 4.5% to $209,000. During the same period, new listings dropped 8.5% to 215 listings; active listings declined 1.1% to 89 listings; while pending sales increased 21.6% to 186 pending sales.  
 
In June, home sales spiked 40.9% year over year to 31 home sales, and sales dollar volume jumped 58.8% to $7,577,358. During the same period, the median price rose 7.2% to $204,239. New listings dropped 17.4% to 38 listings; active listings decreased 23.6% to 81 listings; while pending sales increased 53.3% to 46 pending sales. Housing inventory fell 1.2 months to 3.2 months of inventory.  

For more information or to download the June 2020 Central Texas Housing Market Report, visit https://www.abor.com/statsjun20. All information taken from the Austin Board of Realtors May 2020 Central Texas Housing Market Report,