Austin, Texas Real Estate Market Update and Statistics January 2021
published on January 22, 2021
Austin-Round Rock MSA Experiences Record-breaking Housing Market in 2020
The Austin-Round Rock Metropolitan Statistical Area broke yearly and monthly home sales records at the end of 2020, while also reaching a monthly high for median price, according to the Austin Board of REALTORS® December 2020 and Year-End Central Texas Housing Market Report. Over 40,000 homes were sold, totaling over $17 billion in home sales.
For the month of December, sales increased 16.2 percent to reach a record high for the month, and median price increased 15.8 percent to reach an all-time monthly record high of $370,000. Housing inventory dropped 1.1 months to reach a record-low of 0.6 months. Days on the market dropped 25 days to 36 days.
“This is a historical and unprecedented time for our housing market,” said ABOR President Susan Horton. “The pandemic only increased demand for all types of housing across the region, pushing inventory to near-zero levels and creating the strongest sellers’ market REALTORS® have ever seen. That said, if you are ready to buy a home, now is the time to take advantage of low interest rates that boost your buying power and plant roots in Central Texas.”
For the year, median sales price for the MSA increased 9.2 percent to $344,000. Pending sales outpaced new listings, meaning supply was not being replenished to keep up with demand.
Texas Real Estate Research Center Former Chief Economist Dr. James Gaines said the record-high demand is a perfect storm of economic growth and increased consumer buying power. “The Austin-area real estate market is experiencing extraordinarily high demand fueled by years of high population growth and employment gains, lifestyle changes following the pandemic, and record-low interest rates. The pandemic fostered an environment where many families increased personal savings, helping some transition from renting to ownership while others needed to ‘move up’ for more space while working from home. Despite a steep slowdown during shelter-in-place orders this spring, the market came roaring back in the summer with no drop-off at the end of the calendar year.”
Gaines said the 2021 housing market outlook for the Austin area is very good, that the demand-driven market will show strength and homes will sell quickly.
City of Austin
In the city of Austin, 2020 home sales increased 1.7 percent to an all-time record of 12,745 sales, and median price increased 12 percent year over year to an all-time record of $420,000. For the month of December, median sales price increased 18.7 percent to $461,000, an all-time monthly high. Sales increased 16.4 percent to 1,191 sales, an all-time December high. Inventory dropped 0.4 months to 0.7 months of inventory.
In 2020 in Williamson County, home sales increased 9.1 percent, and median price increased 7.7 percent to $307,000. For the month of December, sales increased 4.1 percent, and median price increased 14.3 percent to $326,650. Inventory dropped 1.4 months year over year to 0.4 months, the lowest inventory in the MSA.
In 2020 in Hays County, home sales increased 21.9 percent, and median price increased 10.9 percent to $295,000. For the month of December, sales increased 35.6 percent and median price increased 17.5 percent to $314,900. Inventory dropped 1.8 months year over year to 0.7 months of inventory.
Horton said, “The Central Texas housing market is incredibly competitive and moving at lightning speed right now. “The complexity of a home sale is at an all-time high as it has become commonplace for homes to receive multiple offers well over list price. Whether you’re a homebuyer or a home seller, it is more important than ever to work with a REALTOR® who deeply understands your local area and can navigate the near-zero inventory market on your behalf.”
Austin-area December 2020 Sold Homes
- Number of sold homes: 3,626 (Up 16% compared to December 2019)
- Median sold price: $370,000 (Up 15% compared to December 2019)
- Days on the market: 36 (Down 25 days compared to December 2019)
Austin-area December 2020 Single-Family Homes on the Market
- New listings: 2,421 (Up 23% compared to December 2019)
- Active listings: 1,954 (Down 63% compared to December 2019)
- Pending sales: 3,114 (Up 40% compared to December 2019)
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