This year started off with a combination of fierce buyer competition and scarce housing inventory throughout the Austin-Round Rock Metropolitan Statistical Area (MSA). In the latest housing report from the Austin Board of REALTORS® (ABoR), January sales statistics indicate that buyer competition is becoming increasingly fierce while inventory dips closer to zero. The combination of sky-high demand and near-zero inventory is creating an environment where homes are selling as soon as they hit the market and almost always for more than the asking price.
“Central Texas is a popular place for people to move and the continued corporate relocations have created a kind of juggernaut in the Austin area,” said David Brodsky, broker/owner of David Brodsky Properties. “We’re not likely to see this trend come to an end anytime soon. The spring and summer selling seasons may become even more competitive as more people relocate and businesses increase activity.”
Current Austin real estate market dynamics have some wondering if the Central Texas region has entered into a housing bubble. Although prices are increasing at an almost alarming rate, overall market and economic conditions still don’t indicate a housing bubble. It would take a major economic or geo-political event to cause the Austin real estate market to significantly adjust, says Brodsky.
“Buyers are putting up some unbelievable offers to win the house they want in the Austin area. The offers that they’re making are generally leaning heavily on cash,” explained Brodsky. “So we don’t have a situation where buyers are going outside their financial capabilities to get into a home of their choice. Lending requirements are keeping that from happening. This also lowers the risk of homeowners suddenly being unable to pay their mortgage, which is one of the factors that exacerbated the recession of 2008,” he said.
Austin-Round Rock Real Estate Statistics
- Pending sales jumped by 15.9% to 3,365 in January
- New listings declined by 11% last month from January 2020 to reach 2,878 new listings
- Active listings plummeted by 73.9% in January 2021 from January 2020 and landed at 1,369 active listings last month
- Sales dollar volume surged by 53% this January over last to reach $1,161,692362
- Housing inventory reached a record low after dipping 1.3 months this January from last January to reach 0.4 months of inventory
- Homes spent an average of 33 days on the market
City of Austin Real Estate Statistics
- Home sales increased by 23.8% in January 2021 from January 2020 to reach 811 sales, setting a record for January home sales in the City of Austin
- Total sales dollar volume ballooned by 58% this January over last, to reach $466,444,738
- The median sales price in the City of Austin reached $455,000 which represents a 19.7% increase over January 2020 and is a record high for the month
- New listings decreased by 7% to reach 956 listings this January
- Active listings fell by 46.9% this January to 956 active listings
- Pending sales jumped by 14.8% to reach 1,066
- Housing inventory decreased by 0.6 months and hit 0.5 months of inventory this January
Travis County
- Home sales increased by 23.5% in this January over last to reach 1,292 sales
- Sales dollar volume spiked by 60% to reach $718,269,389 in January 2021
- The median price for a Travis County home increased by 22.2% year over year to reach $427,750
- New listings fell 12.7% to reach 1,411 listings
- Active listings dropped by 63.5% to 819 listings
- Pending sales jumped 10.1% to 1,576 pending sales
- Monthly housing inventory fell 0.9 months year over year to reach 0.5 months
Williamson County
- Home increased 11.2% over last January to 763 home sales this January
- Sales dollar volume jumped 28.7% to $272,029,213
- Median price increased by 16.4% to $322,750
- New listings declined by 14.9% over January 2020 to 921 listings
- Active listings fell by a whopping 85.9% this January to reach 252 listings
- Pending sales increased 5.3% to 1,059 pending sales
- Housing inventory declined by 1.5 months year over year to reach 0.2 months
Hays County
- Home sales in Hays County jumped by 50% to 324 sales
- Sales dollar volume spiked by 78.2% to $128,186,266
- Median price for a Hays County home increased by 18.1% to $301,250
- New listings decreased by 4% year over year to reach 360
- Active listings steeply fell by 80.8% to 156 listings
- Pending sales increased 40.4% compared to last January to reach 483 pending sales
- Housing inventory decreased by 2 months to 0.4 months
Bastrop County
- Home sales climbed 66.7% to 115 sales
- Sales dollar volume increased by 81% to reach $34,195,517
- Median price increased 10% to reach $265,000
- New listings increased by 29% to 160 listings
- Active listings declined by 70.7% to 93 listings
- Pending sales skyrocketed 151.7% to reach 22.4 pending sales
- Monthly housing inventory decreased by 2.6 months to 0.8 months
Caldwell County
- Home sales increased by 45% over last January to reach 29 home sales
- Sales dollar volume increased by 45.7% to $8,217,616
- The median home price increased 10.6% year over year to $257,450
- New listings fell by 29.7% to 26 listings
- Active listings dropped 44.9% to 49 listings
- Pending sales declined by 28.1% last month over January 2020 to 23 pending sales
- Housing inventory decreased by 1.9 months to 1.6 months
Contact David Brodsky Properties for more insight into Austin area real estate. Our Austin real estate strategists can lend expert guidance to help you to navigate this challenging and unique market.