Austin Real Estate Update | January 2022
The new year is here and I hope this finds you healthy and in good spirits! Our household is getting over covid taking a run through it, so that made for a really low-key holiday season for us. Thankfully, everyone appears to be okay. Please think of me should you or your friends/associates have any real estate needs or questions, I'm never too busy to help. This edition features the most recent market updates as well as Austin news and events - Enjoy!
According to the Austin Board of REALTORS® (ABoR) November Central Texas Housing Report, closed listings dipped 4.9% to 3,215 across the Austin-Round Rock MSA in November. This occurred even as the housing market remains on track for a record-breaking year, with closed listings outpacing 2020 by 3.1% last month.In November, 53% of the 3,215 closed listings —1,694 homes —sold between $250,000 and $500,000, today’s typical price range for first-time and first-time move-up homebuyers. This data indicates that despite a fast-paced market and record-low inventory, opportunity still exists to find the right home.
In November, median sales price rose 29.7% to $470,000 — a record for the month of November — and sales dollar volume rose 20.5% to $1,882,296,166. New listings increased 6.7% to 2,950 as active listings ticked down 2.2% to 2,768. Concurrently, pending listings rose 7.6% to 3,407 as inventory dropped 0.1 months to 0.8 months of inventory. Homes spent an average of 22 days on the market, down 13 days from November 2020.
City of Austin In the city of Austin, the median home price rose 24.2% year over year to $540,000––a record for the month of November. Home sales decreased 4.3% to 1,053 sales, while sales dollar increased 17.6% to $705,190,726. During the same period, new listings decreased 1.9% to 880 listings, active listings dropped 22.2% to 822 listings, while pending sales increased 3.6% to 1,049 pending sales. Monthly housing inventory decreased 0.3 months year over year to 0.7 months of inventory. Travis County At the county level, home sales also decreased 5.5% to 1,622 sales, while sales dollar volume increased 16.4% to $1,112,101,674. The median price for a home also increased 24.6% year over year to $529,500. During the same period, new listings decreased 2.7% to 1,356 listings, while active listings declined by 13.6% to 1,311 listings. Pending sales increased 5% to 1,672 pending sales as monthly housing inventory decreased 0.1 months year over year to 0.8 months of inventory. Williamson County In Williamson County, November homes sales decreased 1.3% to 1,105 sales, while sales dollar volume rose 37.2% to $549,681,505. The median price rose 36.5% to $445,000, and new listings increased 12% to 1,011 listings. During the same period, active listings rose 24.7% to 753 listings, and pending sales also increased 13% to 1,151 pending sales. Housing inventory increased 0.2 months to 0.7 months of inventory. Hays County In Hays County, November home sales decreased 16.3% to 329 sales, while sales dollar volume dropped 3.8% to $159,743,802. The median price for homes rose 27.9% to $390,000. During the same period, new listings increased 24.4% to 418 listings, while active listings also rose 7.6% to 466 listings. At the same time, pending sales increased 2.2% to 417 pending sales. Housing inventory stayed level at 1.1 months of inventory. (information courtesy of ACTRIS)
National Market Update Home buyers faced a lot of competition in 2021. Elevated demand and fewer homes available for sale meant interested buyers had to be ready for a bidding war or risk losing a good house to a better prepared buyer. This was certainly true during the spring and summer markets. According to one measure, 74.6 percent of offers faced competition in April. Fortunately, though, that was the peak. And, as the summer market turned to fall, buyer competition began to slow. By October, the number of offers that saw competition from other buyers had fallen to 61.8 percent. From there, it fell even further. The most recent numbers available show the competition rate was 59.5 percent in November - the first time since December 2020 that it dropped below 60 percent. But while that's a good indication that winter buyers will face less competition than earlier in the year, the rate in November was still up 2 percent from the year before. In other words, though the market isn't as hot, buyers still need to be prepared, since competition remains high and most homes continue to draw multiple buyers. Existing Home Sales grew 1.9% in November, to a 6.46 million annual rate, landing above 6,2 million for the third month straight. It looks like sales for 2021 are on the way to be the highest for any calendar year since 2006. The Pending Home Sales index of signed contracts on existing homes was off 2.2% in November, ascribed by the National Association of Realtors to “low housing supply, but also to buyers being hesitant about home prices.” But the NAR’s chief economist predicted, “neither a price reduction, nor another year of record-pace price gains,” explaining “the market will see more inventory in 2022 and that will help some consumers with affordability.” New Home Sales increased 12.4% in November, to a 744,000 annual rate. But the gain came after big downward revisions to prior months. However, builders are active, with homes under construction at the highest level since 2007. Housing Starts rocketed up 11.8% in November, to a 1.679 million annual rate, 8.3% ahead of a year ago. It was the biggest monthly gain in eight months, and residential construction is now at the fastest pace since 2007. Builders see even more demand in the wings, as new Building Permits gained 3.6% in November, to a 1.712 million annual rate. The backlog of projects authorized but not started is now the highest since 1999. Based on population growth and knockdowns, we need about 1.5 million starts a year, and it looks likely we’ll reach that level for 2021. NAHB builder sentiment rose for the fourth month in a row, staying near historical highs. Home sales should continue to be driven by millennials who are now the country’s largest living generation and are entering the housing market big time, making up more than 50% of new mortgage issuance since 2019. Freddie Mac notes: “…the economy remains on firm ground…. While we do expect rates to rise, the push of the first-time homebuyer demographic that’s been propelling the purchase market will continue in 2022 and beyond.”
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