Despite a dip in home sales caused by an unprecedented winter storm that shut down the entire Central Texas region in February, home sales statistics show that the market is still hot. According to the February Central Texas Real Estate report from the Austin Board of REALTORS® (ABoR), overall home sales were down from the year before throughout the five-county Austin-Round Rock Metropolitan Statistical Area (MSA) last month compared to the same time a year earlier. Despite the decline in the number of sales, the median home price hit an all-time high while Austin homes for sale reached an all-time low.
“We’re seeing the continuation of an Austin real estate buying frenzy that’s been boosted by changes in the workplace caused by covid. Now workers have more flexibility in where they can choose to live,” said David Brodsky, former Fortune 500 CFO and broker/owner of the award-winning Austin real estate brokerage, David Brodsky Properties. “As a result, more people are looking at where they can experience the best lifestyle for the money. Austin is an ideal place to live due to the strength of the economy, the lifestyle options available and the relative affordability it offers. Since those factors aren’t going to change drastically in the near future, the continued unprecedented demand isn’t likely to slow down anytime soon.”
The general consensus from economic and real estate experts supports Brodsky’s outlook. In a report that was issued with the real estate statistics, Susan Horton, 2021 ABoR president, pointed out the strength of the market despite the dip in sales. “Although the winter storms slowed activity in February, this does not indicate a market slowdown. We’re still very much in a sellers’ market,” Horton said. “Across the region, a high quantity of offers, cash offers, and requests to waive appraisals or option fees are increasingly commonplace.”
However, it’s likely that March home sales will perform similarly to the February numbers due to the slowdown caused by the February freeze and constrained inventory. In a report about the February housing statistics published by the Austin American-Statesman, Eldon Rude explains how the two factors could curb the number of closings in March. Rude is the principal of 360 Analytics, a real estate consulting firm. His observation points to a continued lack of inventory as the cause of skyrocketing home prices.
“The February closings figures continue to reflect the pattern we have been seeing in the Austin housing market since last spring — an extreme imbalance of demand over supply translating into record low inventory levels for both new and resale homes,” said Rude. “The result has been rapidly increasing home prices in virtually all market sectors.”
Rising home prices aren’t keeping new residents and corporations from relocating to or expanding in the Austin area, though. Recently, announcements from corporate giants like Tesla, Oracle and Apple have made headlines and are likely to inspire other companies to look at Austin. The thousands of jobs that the three companies will bring to the area will attract workers from around the country who are seeking a new place to call home. The likelihood of continued record-breaking real estate growth makes the Austin real estate market a great place to buy a home. Buyers and sellers should heed the warnings of experts not to try to navigate the market alone, though.
“Anyone interested in buying or selling a home in the next few months should start preparing now by determining what lending options are available to you, any financial or credit changes needed to boost your approval odds, and where you’re flexible in terms of home location and amenities,” explained Horton. “A REALTOR® can help connect you with a lender and set you up for success through this extremely competitive and increasingly complicated process.”
Austin-Round Rock Real Estate Report
Home sales dollar volume jumped 15.9% to $1,207,218,785 across the five-county MSA- Pending sales fell 15.5% to 2,573 in February
- New listings decreased to 24.8% to 2,565
- Active listings dropped to 74.1% to 1,310 listings
- Homes spent an average of 31 days on market
City of Austin
- The median home price spiked 24.3% to $491,000 in February, an all-time high for any month on record for the city of Austin
- Residential sales decreased by 4.6% to 834 sales
- Sales dollar volume increased by 17.3% to $494,005,207
- New listings decreased by 26.5% to 806 listings
- Active listings dropped by 53.7% to 516 listings
- Pending sales decreased by 9.3% to 840 pending sales
- Monthly housing inventory decreased by 0.6 months year over year to 0.5 months of inventory
Travis County
- February residential sales decreased by 2.3% to 1,287 sales
- Sales dollar volume rose by 26.7% to $777,811,342
- The median price for residential homes increased 25.3% year over year to $470,000
- New listings decreased 28.1% to 1,271 listings
- Active listings plummeted 64.8% to 765 listings
- Pending sales decreased 17.8% to 1,276 pending sales
- Monthly housing inventory fell 0.8 months year over year to 0.5 months of inventory
Williamson County
- Residential sales decreased by 25% to 668 sales this February
- Sales dollar volume decreased 8.9% to $263,288,331
- The median price increased 25.9% to $364,950
- New listings fell 22.1% to 828 listings
- Active listings tumbled 83.9% to 271 listings
- Pending sales decreased 20.3% to 789 pending sales
- Housing inventory declined 1.3 months year over year to 0.3 months of inventory
Hays County
- Residential home sales steadily increased 9.8% to 313 sales
- Sales dollar volume increased 15.1% to $129,092,500
- The median price for homes increased 7.1% to $301,000
- New listings declined 16.7% to 339 listings
- Active listings fell 79.6% to 161 listings
- Pending sales decreased 6.6% to 354 pending sales
- Housing inventory decreased by 1.9 months to 0.4 months of inventory
Bastrop County
- Bastrop County home sales increased 28.8% to 103 sales in February
- Sales dollar volume rose 52.3% to $32,435,443
- The median price for residential homes increased by 12.2% to $274,946
- New listings declined 17% to 112 listings
- Active listings fell 75.2% to 82 listings
- Pending sales increased 33% to 129 pending sales
- Housing inventory decreased by 2.8 months to 0.7 months of inventory
Caldwell County
- Caldwell County home sales decreased by 28% to 18 sales this February over last
- Sales dollar volume decreased 32.7% to $3,734,524
- The median home price decreased 3.4% year over year to $199,900
- New listings tumbled 60.5% to 15 listings
- Active listings dropped 65.6% to 31 listings
- Pending sales slightly increased 4.2% to 25 pending sales
- Housing inventory decreased 2.4 months to 1.1 months of inventory
Reach out to David Brodsky Properties for expert help with your Austin real estate needs.