Austin Real Estate Update | November 2021
The holiday season is here and I hope this finds you healthy and in good spirits! 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) 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.
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.
Laura Huffman, president and CEO of the Austin Chamber of Commerce, said: “Tesla moving its headquarters here has cemented Austin as a hub of the tech and innovation industry with the potential for limitless opportunities. 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.” Last month, new listings increased 14.1% to 4,409 listings; active listings declined 19.1% year over year to 3,380 listings; and pending sales decreased 8.6% to 3,970 listings. Homes only spent an average of 14 days on market last month across the MSA, a decrease of 30 days from the year prior. 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. Travis County 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. Williamson County 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. (information courtesy of ACTRIS)
National Market Update Existing Home Sales surprised to the upside, rising 7.0% in September, the largest monthly gain in a year. Sales increased in all major regions, and the rate of price increases continued to decelerate, as it's done since May. The Pending Home Sales index of signed contracts on existing homes fell 2.3% in September, down 8% year-over-year. The National Association of Realtors Chief Economist felt this shows “signs of a calmer home price trend.” New Home Sales surged 14.0% in September to an 800,000 thousand annual rate, the largest monthly gain in more than a year. The pace of sales returned to an upward trend, up 17.1% from June, but still well below its January peak. Housing Starts slipped 1.6% in September, thanks to supply and labor shortages, plus Hurricane Ida in some states. But home building is at its fastest pace in 14 years and builder confidence rose, since demand stays strong National Association of Realtors affordability rose in August for the second month in a row. At 151.3, it’s below a year ago, but scores over 100 say a family with the median income earns more than enough to afford a median-priced home. Closing costs rose in the first half of the year, thanks to higher home prices. But as a percentage of purchase price, closing costs in fact declined, showing the mortgage industry is holding down the costs it can control. Real estate remains a good hedge against inflationary pressures. According to Freddie Mac’s chief economist, “Historically speaking, mortgage rates are still low.” But he cautions: “As inflationary pressure builds…we expect rates to continue a modest upswing.”
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