Austin-area Housing Inventory Drops in May 2020 Leading to Lower Sales
published on June 22, 2020
Home sales in the Austin-Round Rock Metropolitan Statistical Area decreased 29.2 percent in May 2020, as inventory continued to drop amidst the coronavirus pandemic, reaching only a two-month supply. Median price inched up 0.7 percent across the region to $329,893, according to the Austin Board of REALTORS® Central Texas Housing Market Report.
Within the city of Austin, home sales dropped 36.6 percent amidst an extremely limited 1.7-month supply of inventory. Median price, however, increased 10.7 percent compared to last year to reach $424,050.
“We’re seeing home sales drop because we simply don’t have enough inventory on the market,” said ABOR President Romeo Manzanilla. “We recognize there’s still an element of discomfort with listing one’s home during the pandemic, and Austin REALTORS® are taking every precaution to ensure safe and efficient practices across the market. There’s a lot of opportunity for sellers who are ready—new listings have increased visibility, and homes are spending less time on the market.”
In the Austin-Round Rock MSA, active listings declined 18.8 percent, new listings declined 15.8 percent, and pending sales increased 14.2 percent.
Manzanilla said that pending sales growth is the first sign of recovery “so the strong gains in May pending home sales throughout the MSA are encouraging. With continued population growth and pent-up demand for housing, our region’s housing market will ultimately rebound.”
Sales in Williamson County decreased by 27.1 percent, and median price dropped 2.7 percent to $290,000. New listings were down just over 20 percent, while active listings decreased 23.7 percent, and pending sales increased 23.6 percent. Inventory had a 0.7-month drop to reach 1.8 months of inventory.
Sales in Hays County decreased 19.1 percent, and median price declined 0.8 percent to $265,900. New listings were slightly down 0.4 percent, while active listings decreased eight percent, and pending sales increased 44 percent. Inventory had a 0.5-month drop to reach 2.6 months of inventory.
Independence Title State Director of Information Capital Mark Sprague said, “If you compare Austin’s home sales to the majority of large cities in the U.S., you’ll find Austin’s market has remained strong. But because sales numbers have a one-to-three-month lag time, it was no surprise May sales declined, and we’ll likely see the same in June and July. The solution is increased housing stock. Until more homes are put on the market, we won’t see home sales recover anytime soon.”
Austin-area May 2020 Sold Homes
- Number of sold homes: 2,697 (Down 29% compared to May 2019)
- Median sold price: $329,893 (Up 0% compared to May 2019)
- Days on the market: 47 (Down 3 days compared to May 2019)
Austin-area May 2020 Single-Family Homes on the Market
- New listings: 4,151 (Down 15% compared to May 2019)
- Active listings: 6,086 (Down 18% compared to May 2019)
- Pending sales: 4,287 (Up 14% compared to May 2019)
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