Austin Round-Rock Housing Market Remains Stable, On Track For Record Year
by Brad Pauly
on Friday, December 3rd, 2021 at 1:00pm.
AUSTIN, Texas – According to the Austin Board of REALTORS® (ABoR) October 2021 Central Texas Housing Report, the Austin-Round Rock MSA housing market remains on track for a record breaking year, even as the market continues its calming trend. Home sales across the MSA decreased 12.1% to 3,250 closings compared to October 2020 as the median sales price grew 24.7% year over year to $455,000 setting a record for the month of October.
“We are beginning to see a glimpse into what buyers and sellers can expect in our housing market moving forward,” Susan Horton, 2021 ABoR president, said. “More new listings are hitting the market, a trend that we have seen continuously for the past eight months, and when coupled with fewer closings across the MSA, prospective buyers have more options. With the market remaining stable — but still on track for a record year — it is an exciting time for REALTORS® who continue to be the best advisers to both buyers and sellers when it comes to navigating one of the most desirable housing markets in the country.”
Across the MSA in October, sales dollar volume increased 6.4% year over year to $1,836,686,318 and new listings increased 0.9% to 3,777. At the same time, active listings decreased 0.5% year over year to 3,475 and pending sales increased 4.4% to 3,774 across the MSA. Monthly housing inventory dipped 0.1 months of inventory to 1.0 months and homes spent an average of 20 days on the market, down 16 days when compared to October 2020.
Jon Hockenyos, president, TXP, Inc. — an economic analysis and public policy consulting firm — offered insight into why the market remains competitive and looks to signs of the supply chain rebounding which could help with new housing developments.
“While activity appears to have leveled off somewhat in recent months, Austin’s residential real estate market remains extraordinarily hot, as prices have risen drastically over the past year. Real estate in Austin remains a seller’s market as historically low interest rates, strong in-migration, a rapidly recovering local economy and unprecedented stimulus all drive up the demand for housing. When the lowest inventory on record is factored into the mix, it’s clear that price pressures are unlikely to ease any time soon. Hopefully, the coming months will bring more supply to the market, as materials shortages ease and new development occurs.”
Horton reaffirmed the importance of the community and elected officials working together towards increasing housing inventory across all price levels.
“We are pleased to hear the Austin City Council will be meeting to discuss housing supply and affordability, a topic that has become increasingly more important in our region. We encourage local leaders to take action to increase our city’s housing capacity to ensure there are opportunities for home ownership for individuals and families across all demographics in the future.” - Susan Horton 2021 ABoR President
City of Austin
In the city of Austin, the median home price rose 21.1% year over year to $536,000¬¬––a record for the month of October. Home sales decreased 11.7% to 1,062 sales, while sales dollar volume increased 2.2% to $704,910,050. During the same period, new listings decreased 8% to 1,236, active listings dropped 17.9% to 1,101, while pending sales increased 2.5% to 1,209. Monthly housing inventory decreased 0.3 months year over year to 1.0 months of inventory.
At the county level, home sales also decreased 16.9% to 1,569 sales, and sales dollar volume dropped 3.9% to $1,035,465,570. The median price for a home increased 21.8% year over year to $522,625. During the same period, new listings decreased 3.3% to 1,942 while active listings declined by 5.8% to 1,811 listings. Pending sales increased 1.4% to 1,887 as monthly housing inventory decreased 0.2 months year over year to 1.0 months of inventory.
In Williamson County, October home sales decreased 4.4% to 1,170 sales, while sales dollar volume rose 27.5% to $553,594,267. The median price rose 33.4% to $430,000, and new listings increased 9.3% to 1,240 listings. During the same period, active listings rose 25.2% to 940 listings, and pending sales also increased 8.2% to 1,268 pending sales. Housing inventory increased 0.2 months to 0.8 months of inventory.
In Hays County, October home sales decreased 11.2% to 372 sales, and sales dollar volume climbed 19.9% to $197,198,201. The median price for homes rose 30.6% to $399,750. During the same period, new listings increased 1.5% to 401 listings, active listings decreased 8.7% to 473 listings. At the same time, pending sales increased 10.8% to 450 pending sales. Housing inventory declined by 0.2 months to 1.1 months of inventory
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Thoughts From the Broker
Here's my outlook for 2022. Hardly going out on a limb when I say 2022 should be another strong year for the Austin and surrounding real estate market. We should expect continued population growth which will continue to suppress the real estate supply. I do expect interest rates to rise in the second quarter, but not enough to slow down Buyers. Look for another price jump in January. I hope everyone has a happy and safe holiday season!