Austin-Area Housing Market Remains Undeterred Amid Ongoing Pandemic
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 percent 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 percent to $1,889,382,006, and the median price rose 11.3 percent to $355,000.
New listings slightly increased 1 percent to 3,862 listings, and pending sales soared 40.1 percent to 4,533. At the same time, active listings dropped 44.9 percent 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.”
City of Austin
In the city of Austin, critically low levels of inventory drove the median home price up 14.9 percent year over year to $435,000—an all-time high for any month on record.
Residential sales barely increased 2.4 percent to 1,240 sales, as sales dollar volume jumped 19.9 percent to $682,748,453.
During the same period, new listings increased 4.8 percent to 1,318 listings, active listings decreased 26.6 percent to 1,468 listings, and pending sales increased 20.6 percent to 1,314 pending sales. Monthly housing inventory decreased 0.5 months year over year to 1.5 months of inventory.
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