Housing Market Continues Calming Trend Across Austin Round-Rock MSA
by Brad Pauly
on Tuesday, November 2nd, 2021 at 3:02pm.
Addressing affordability and increasing inventory a top priority for region.
AUSTIN, Texas – According to the Austin Board of REALTORS® (ABoR) September 2021 Central Texas Housing Report, the Austin-Round Rock MSA housing market is continuing its calming trend. Home sales decreased 5.1% compared to September 2020 as the median sales price of $450,000 set a record for the month of September across the MSA. To meet the continued demand, due in large part to economic activity and job growth across the region, addressing housing affordability and increasing available inventory should continue to be a top priority for the region.
“The Austin housing market remains strong and competitive,” Susan Horton, 2021 ABoR president, said. “However, more homes are beginning to hit the market evidenced by the increase in new listings in September, which is creating a greater number of opportunities for buyers. While this is a positive step forward, there is a long way to go for this to be a balanced market. REALTORS® continue to ensure their clients’ needs are being met despite inventory remaining low.”
As residential home sales in the Austin Round-Rock MSA declined 5.1% to 3,682, the median sales price grew 28.5% year over year to $450,000. At the same time, sales dollar volume increased 18.5% year over year to $2,078,429,244. New listings increased 16.9% to 4,136 as active listings grew 0.7% year over year to 3,723 listings and pending sales declined 1.1% to 3,552 across the MSA. Monthly housing inventory dipped 0.1 months to 1.1 months of inventory and homes spent an average of 17 days on the market, down 22 days when compared to September 2020.
Several factors have contributed to the housing market boom in Austin, not just over the past 16 months, but over the past two decades. Job growth and a flourishing and diverse economy have been a main driver of increased demand according to the Austin Chamber of Commerce.
“Tesla moving its headquarters here has cemented Austin as a hub of the tech and innovation industry with the potential for limitless opportunities,” Laura Huffman, president and CEO of the Austin Chamber of Commerce, said. “The intentional diversification of our region’s economy and significant job creation also brings challenges that we as local leaders must take head on. Increasing housing inventory – and ensuring that it is attainable across all socioeconomic classes by strengthening and diversifying housing options – is crucial to the health and vibrancy of our community. Austin has the opportunity to find a path forward that will allow us to maintain the magnetism of our housing market while keeping our competitive advantage when it comes to cost of living and quality of life. Doing so will allow us to continue to attract job growth and capital investment in the region.”
Horton placed importance on coming together to address the challenge.
“With the region’s continued growth, we must focus on creating more inventory to meet the increasingly high and sustained demand for housing. This isn’t just on our elected officials or industry to solve, but rather on the entire community. We have to put housing first and use all the tools we have in the toolbox to address this issue.”
“The Austin housing market remains strong and competitive.” - Susan Horton 2021 ABoR President
City of Austin
In the city of Austin, the median home price rose 28% year over year to $525,000—a record for the month of September. Home sales decreased 7.1% to 1,156 sales, while sales dollar volume increased 6.4% to $711,203,330. During the same period, new listings increased 8.4% to 1,384, active listings dropped 11.1% to 1,232, and pending sales decreased 4.4% to 1,080. Monthly housing inventory decreased 0.3 months year over year to 1.1 months of inventory.
At the county level, home sales also decreased 7.0% to 1,796 sales, and sales dollar volume jumped 11.5% to $1,188,315,638. The median price for a home increased 22.9% year over year to $510,000. During the same period, new listing increased 13.3% to 2,117 listings; active listings decreased 3.2% to 1,969 and pending sales decreased 5.7% to 1,681. Monthly housing inventory decreased 0.2 months year over year to 1.1 months of inventory.
In Williamson County, September home sales decreased 2.7% to 1,269 sales, while sales dollar volume jumped 33.2% to $608,322,686. The median price rose 37.5% to $435,000, and new listings increased 26.2% to 1,306 listings. During the same period, active listings rose 19.2% to 981 listings, and pending sales also increased 7.8% to 1,293 pending sales. Housing inventory stayed level at 0.8 months of inventory.
In Hays County, September home sales decreased 3.2% to 457 sales, and sales dollar volume climbed 22.4% to $221,438,960. The median price for homes increased 16.3% to $365,000. During the same period, new listings rose 7.5% to 519 listings, active listings increased 1.3% to 558 listings. At the same time, pending sales decreased 7.6% to 413 pending sales. Housing inventory decreased 0.1 months to 1.3 months of inventory.
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Thoughts From the Broker
Rents are up! It took about 6 months longer than I expected, but rental rates have really jumped in the Austin market. For investors this is good news, for renters, it's another reason to roll your eyes at the Austin real estate market. Austin and surrounding cities still have an inventory problem and until that changes, Buyers and renters will continue to be frustrated. Stay vigilant Buyers and tenants!