Central Texas Housing Market Strong Despite Economic Challenges

ROUND ROCK, TX — The Central Texas housing market continues to exhibit strength despite economic challenges and shrinking housing inventory, according to the Austin Board of Realtors September housing market report.

In September, home sales across the Austin-Round Rock MSA soared 31.5 percent year over year to 3,892 sales, according to the report. Historically this time of year home sales are slower, researchers noted, but because of decreased activity during the shelter-in-place orders due to the COVID-19 pandemic, the summer selling season extended into September.

The market’s strength was evident across the five-county multiple statistical area (MSA) as sales dollar volume jumped 51.7 percent to $1,779,067,529, and the median price rose 12.1 percent to $355,000. New listings increased 5.0 percent to 3,539 listings, and pending sales jumped 28.2 percent to 3,767. At the same time, active listings dropped 49.9 percent to 3,708 listings, according to the report.

“The housing market is pumping billions of dollars into our region’s economy at a time it’s greatly needed, but we also need to be cognizant of the impact such rapid activity is having on record-low inventory levels and rising home prices,” Romeo Manzanilla, 2020 Austin Board of Realtors president, said in a prepared statement. “Austin's suburban markets have historically offered housing stock at lower price points that created opportunity for people when buying or renting inside Austin city limits was not an option. Now, these markets are showing the same gains in prices and declines in inventory as we’re used to seeing inside Austin, putting pressure on the market as a whole.”

Homes across the MSA spent an average of 37 days on the market — 14 fewer days than September 2019 — and housing inventory decreased 1.3 months to 1.2 months of inventory.

Vaike O’Grady, Austin regional director for Zonda (formerly Metrostudy), said the city of Austin has a limited number of residential lots. This is forcing developers to move to the suburbs where land is more available and less expensive, according to the report. When it comes to construction in suburban markets, homes simply can’t be put on the ground fast enough to meet demand, researchers noted.

“We need to remove the barriers to new construction and open up more building opportunities across the region to create more inventory for buyers,” O’Grady said in a prepared statement. “Austin’s economy is bouncing back better than most cities, allowing more people to make a move to a home that meets their needs. To solve Austin’s housing supply and affordability challenges, we need to commit to streamlined review and approval processes for new construction.”

Manzanilla noted the need for more housing stock: “The Austin area needs more housing supply at all price points in order to stabilize home price growth and help make homeownership accessible, especially for first-time homebuyers. “REALTORS® will continue working aggressively to navigate a competitive, fast-moving housing market on behalf of their clients.”

The Austin Board of Realtors provided housing activity snapshots across the region:

City of Austin

Low levels of inventory in the city of Austin drove the median home price up 8.7 percent year over year to $415,500. Residential sales increased 20.7 percent to 1,248 sales, as sales dollar volume spiked 39.2 percent to $678,062,256. During the same period, new listings increased 16.4 percent to 1,273 listings, active listings decreased 24 percent to 1,390 listings, and pending sales increased 16.6 percent to 1,164 pending sales. Monthly housing inventory decreased 0.4 months year over year to 1.4 months of inventory.

Travis County

At the county level, residential sales increased 27.1 percent to 1,930 sales, while sales dollar volume jumped 50 percent to $1,081,018,324. The median price for residential homes increased 13.8 percent year over year to $420,000. During the same period, new listings increased 8.4 percent to 1,863 listings, while active listings declined 41.8 percent to 2,039 listings. At the same time, pending sales rose 18.4 percent to 1,836 pending sales. Monthly housing inventory fell .9 months year over year to 1.3 months of inventory.

Williamson County

In Williamson County, September residential sales increased 29.4 percent to 1,306 sales, and sales dollar volume jumped 43.8 percent to $461,491,699. The median price rose 9 percent to $318,050. During the same period, new listings dropped 10.2 percent to 1,035 listings, and active listings tumbled 66.5 percent to 816 listings. Pending sales jumped 33.7 percent to 1,266 pending sales. Housing inventory declined 1.6 months year over year to .8 months of inventory.

Hays County

September home sales spiked 50.3 percent to 487 sales, and sales dollar volume increased 78 percent to $184,817,195 in Hays County. The median price for homes increased 15.1 percent to $310,000. During the same period, new listings jumped 40.6 percent to 485 listings, and active listings tumbled 43.1 percent to 558 listings. At the same time, pending sales increased 42.9 percent to 480 pending sales. Housing inventory dropped by 1.5 months to 1.5 months of inventory.

Bastrop County

In September, Bastrop County home sales spiked 69.5 percent to 139 sales, and sales dollar volume skyrocketed 96.6 percent to $42,855,211. The median price for residential homes increased 8 percent to $270,000. During the same period, new listings increased 4.7 percent to 133 listings, while active listings declined 36.4 percent to 227 listings. Pending sales rose 84 percent to 149 pending sales. Housing inventory decreased by 1.7 months to 2.2 months of inventory.

Caldwell County

In Caldwell County, September home sales increased 15.4 percent to 30 sales, and sales dollar volume increased by 18.3 percent to $7,000,759. The median home price increased 5.1 percent year over year to $217,500. During the same period, new listings decreased 17.9 percent to 23 listings, while active listings decreased 39.3 percent to 68 listings. Pending sales rose 50 percent to 36 pending sales. Housing inventory decreased 2.1 months to 2.5 months of inventory. For more information or to download the September 2020 Central Texas Housing Market Report, visit ABoR.com/MarketStatistics.

About Austin Board of Realtors

The Austin Board of Realtors is a nonprofit organization that has been serving the needs of Central Texas REALTORS® and homebuyers, sellers and renters for nearly a century. Through professional development, grassroots advocacy, and community, the group gives its 14,000+ members the power they need to ensure people have homes. Its multiple listing services (MLS) connects both agents and consumers with the most accurate and robust real estate marketplace in the region. For more information, contact the public relations team at abor@echristianpr.com. For the latest local housing market listings, visit AustinHomeSearch.com.

This article originally appeared on the Round Rock Patch