Austin Real Estate Update | February 2022
Howdy! I hope this email finds you well. If you're in Austin, be sure to bring in or cover your plants for the cold front that is rolling in early Thursday morning! A little preservation now prevents expense later, and good landscaping is always a selling point on a home. The local information is a bit beefier this month because it includes an annual summary as well as the month on month for December. 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!
Home sales accounted for more than $23 billion in economic activity in 2021
According to the December 2021 and Year-End Central Texas Housing Market Report released by the Austin Board of REALTORS® (ABoR), more homes were sold in the Austin-Round Rock MSA in 2021 than ever before, with residential home sales rising 2.5% year over year to 41,316 homes sold last year.
In addition to an annual record for closed sales, the median price for a home across the MSA set a record in 2021, rising 30.8% over 2020 to $450,000. Sales dollar volume jumped 32.6% to yield a $23,374,102,226 impact on the Austin-area economy in 2021. More homes hit the market in 2021 than ever before, with new listings increasing 5.9% to 46,449 homes and pending listings rising 1.1% to 42,592 homes.
Despite a healthy growth in listing activity last year, the average number of active listings on the market dropped 48.2% to 2,348 homes in 2021. Homes spent an average of 20 days on the market, 25 days fewer or 55.6% less than in 2020, and the five-county MSA ended the year with 0.6 months of housing inventory, unchanged from December 2020. Mark Sprague, state director of information capital at Independence Title, reinforced that housing records were set due to high demand combined with limited supply, and provided a glimpse into what to expect in the coming year. “In 2021, the record number of homes sold were demand-driven transactions and that demand was influenced greatly by companies continuing to target the region for job creation and expansion. Even though more homes are being built, listed and sold than ever before, our region is still nowhere close to having a comfortable amount of supply to meet the demand, which is why home prices continue to rise steadily.” When looking ahead to 2022, Sprague identified a lack of inventory and supply chain disruptions as variables that could impact Austin’s housing market. “Lack of inventory and global supply chain issues may lead to a 5-7% decline in closed sales across the region in 2022, but rising home values will ensure the housing market’s economic impact remains steady. In short, 2022 will see a robust market for home sales and property values, but the region must do more to address inventory.”
City of Austin In 2021, residential home sales in the City of Austin increased 4.6% to 13,351 sales, an annual record, while sales dollar volume jumped 30.5% to $8,820,863,800. The median sales price for residential homes rose 27.7% year over year to $536,331 this past year, also an annual record. New listings slightly increased 1.4% to 14,937 listings while active listings dropped 41% to 782 listings, and pending sales increased 4.7% to 13,595 pending sales. In December 2021, the median sales price in the city of Austin rose 19.4% to $555,000, an all-time monthly record. Residential sales decreased 8.2% to 1,110 sales, as sales dollar volume increased 7.5% to $773,517,832. During the same period, new listings dropped 15.1% to 641 listings, while active listings also decreased 26.5% to 548 listings, and pending sales fell 9.3% to 818 pending sales. Monthly housing inventory decreased 0.2 months year over year to 0.5 months of inventory.
Travis County During 2021, residential home sales increased 2.3% to 20,586 sales, while sales dollar volume rose 28.8% to $13,767,295,840. The median price for residential homes increased 28.4% year over year to $520,000. This past year, new listings also increased 0.9% to 22,988 listings, active listings dropped 44.2% to 1,236 listings and pending sales decreased 0.1% to 20,859 pending sales. In December, residential home sales decreased 8% to 1,750 as sales dollar volume in Travis County spiked 9.2% to $1,239,694,707. Additionally, the median price rose 25.4% year over year to $545,000. During the same period, new listings declined 19.1% to 988 listings, active listings also dropped 11.5% to 912 listings, and pending sales decreased 15.4% to 1,262 pending sales. Monthly housing inventory fell 0.1 months year over year to 0.5 months of inventory.
Williamson County In 2021 in Williamson County, home sales increased 2.0% to 13,871 sales, and sales dollar volume spiked 40.9% to $6,528,590,310. The median price for homes increased 38.8% to $425,680. New listings increased 12.2% to 15,479 and active listings fell 52.1% to 629 listings in 2021. However, pending sales increased 2.2% to 14,409 pending sales. During the month of December, residential sales in Williamson County decreased 2.5% to 1,153 sales, and sales dollar volume jumped 33.8% to $580,123,013. The median price increased 38.5% to $450,000. In December, new listings decreased 3.1% to 764 listings, while active listings rose 34.2% to 542 listings. Pending sales dropped 4.3% to 899 pending sales. Housing inventory increased 0.1 months year over year to 0.5 months of inventory.
Hays County During 2021, Hays County home sales increased 0.7% to 4,913 sales, and sales dollar volume rose 30.2% to $2,385,186,102. The median price for homes increased 25.4% to $370,000. This past year, new listings increased 11.8% to 5,834 listings, while active listings tumbled 50.8% to 322 listings compared to 2020. Pending sales increased 0.9% to 5,333 pending sales. December 2021 home sales in Hays County increased 1.9% to 435 sales, and sales dollar volume rose 39% to $230,266,685. The median price for homes increased 29.5% to $395,070. During the same period, new listings increased 11.6% to 307 listings, while active listings also rose 31.9% to 393 listings. However, pending sales decreased 6.8% to 358 pending sales. Housing inventory increased by 0.3 months to 1.0 months of inventory. (information courtesy of ACTRIS)
National Market Update Data from Attom reports owning a median-priced home is more affordable than the average rent on a three-bedroom property in 58% of the U.S., thanks to rising wages and super-low mortgage rates. The Mortgage Bankers Association reported purchase mortgage applications grew by 2% for the week. They expect "solid growth in purchase activity this year,” supported by “demographic drivers and the strong economy.” Existing Home Sales dipped in December to a 6.180 million annual rate. However, 2021 ended with 6.12 million existing homes sold, an 8.5% gain over 2020 and the most since 2006--impressive given the market’s lack of supply. The Pending Home Sales index of signed contracts on existing home fell 3.8% in December after declining in November too. Expect a drop in Existing Home Sales when these contracts go to closing in January. Realtor.com sees a 6.6% rise in existing home sales for 2022. Zillow predicts those sales to “total 6.35 million,” adding “that would be the highest number of home sales in any year since 2006.” New Home Sales shot up a surprising 11.9% in December, their second straight double-digit percent gain. But the year's estimated sales of 762,000 units is down 7.3% from 2020, attributed to higher prices and lack of supply. However, buyers are seeing more affordable options. Sales of new homes worth $200,000 to $399,000 surged to 53% of total sales the past two months, and a national database reports sales overall of affordable homes up 11.3% in Q4. Housing Starts headed up in December to a 1.702 million annual rate. There were a total 1.598 million home starts in 2021, the most since 2006 and the amount we need to meet population growth and replacements. Building Permits shot up 9.1%, to a 1.873 million annual rate, the biggest monthly hike in 17 months. Developers show robust optimism going forward, as the NAHB Housing Index of builder sentiment remains near historic highs. The increase in rates is showing through in recent stats. Mortgage applications fell 7.1% from the previous week, following an increase in rates to the highest level since the pandemic onset, according to the Mortgage Bankers Association (MBA) survey for the week ending Jan. 21.The seasonally adjusted Refinance Index decreased 12.6% in the same period, with applications falling for the fourth straight week. Meanwhile, the Purchase Index declined 1.8%. Compared to the same week one year ago, mortgage apps overall dropped 34.6%, with a sharp decline in refinance (-46.6%) compared to purchase (-8.5%).
Comments