Austin real estate sales have increased again this August over last, leading to hopes that the housing market has fully recovered from the effects of the pandemic. Home sales throughout the Austin-Round Rock metropolitan area made strong, double-digit gains this August versus last. Sales dollar volume and median sales price made similar year-over-year gains. Continued housing growth, coupled with ongoing employment recovery, are signs the region is recovering well this year.
A Look At Recovery
Austin area unemployment has seen a continual decline since April when the jobless rate spiked as a result of the ongoing pandemic. At that time, the jobless rate throughout the Austin area jumped 12.2% year over year which is the highest increase since the data started to be collected three decades ago. Since April, the jobless rate has been declining, coming in at 11.4% in May, 7.3% in June and 6.8% in July. This August, the jobless rate hit 5.5% and is the fourth straight month of employment gains throughout the region. The numbers indicate that the Austin-Round Rock area has regained the bulk of lost jobs in March and April.
“Increasing home sales and declining joblessness are two key indicators of economic growth,” said David Brodsky, broker/owner of the eponymous brokerage. David Brodsky Properties functions as an indie real estate consultancy for residential homeowners and buyers in the Austin area. Brodsky’s background in executive finance and economics give him keen insight into market indicators. “The continued strong housing sales numbers show that the market is recovering and could continue to strengthen. Just how strongly it will perform this year will be determined mostly by inventory available for sale.”
Austin Real Estate Outlook
This August, there were strong gains in residential home sales, median sales price and sales dollar volume. There was also a leap in pending sales. Pending sales indicate the number of homes that have gone under contract and are yet to be closed. This statistic gives us an idea of how home sales will continue to perform in the following month. This August, pending sales made a 40% catapult over August 2019. However, a grey cloud hangs over the sunny outlook Brodsky and other experts have for the Austin real estate market.
Housing inventory has been constrained throughout the Austin area and the recent sales gains have exacerbated the situation. According to the Real Estate Institute, 6 months of inventory is a balanced market, where the market doesn’t favor buyers or sellers. In August 2019, housing inventory was at the critically-low level of 2.6 months and indicated a strong sellers’ market. This August, inventory is at an alarming 1.4 months.
“Potential home sellers are strongly urged to take action now. Nobody knows for sure when buyer demand will reach its peak,” warned Brodsky. “We do know that right now there are more buyers flooding the market and competing over virtually non-existent inventory. This could be the perfect time to sell your home in Austin for top dollar. As always, it is critical to work with a competent and experienced real estate strategist.”
City of Austin
In the city of Austin, critically low levels of inventory drove the median home price up while inventory decreased. New listings made an increase this August, while active listings decreased significantly.
- Median home price increased 14.9% year over year to a monthly all-time high of $435,000
- Residential sales increased 2.4% to 1,240 sales
- Sales dollar volume jumped 19.9% to $682,748,453
- New listings increased 4.8% to 1,318 listings
- Active listings decreased 26.6% to 1,468 listings
- Pending sales increased by 20.6% to 1,314 sales
- Monthly housing inventory decreased 0.5 months year over year to 1.5 months
Travis County
At the county level, residential sales and sales dollar volume made strong increases this August. New listings nudged upward while active listings plummeted.
- Residential sales increased by 9.2% to 2,015 sales
- Sales dollar volume spiked 39.9% to $1,182,976,984
- The median price for residential homes increased 19.2% year over year to $430,000
- New listings slightly increased 1% to 2,046 listings
- Active listings declined 41% to 2,253 listings
- Pending sales rose 34.6% to 2,229 pending sales
- Inventory decreased 1.1 months year over year to 1.4 months
Williamson County
In Williamson County, August home sales and median price made sound increases. Both new listings and active listings decreased throughout Williamson County this August.
- Residential sales increased 13.5% to 1,343 sales
- Sales dollar volume increased 23.1% to $467,254,216
- The median price rose 5.7% to $307,500
- New listings decreased 6.3% to 1,154 listings
- Active listings dropped 54% to 1,111 listings
- Pending sales jumped 33.7% to 1,487 pending sales
- Housing inventory declined 1.4 months year over year to 1.1 months
Hays County
Throughout Hays County, home sales saw a sizable spike this August. Sales dollar volume made even bigger gains and the median home price jumped more than 15%.
- Hays County home sales spiked 31.7% to 499 sales
- Sales dollar volume increased 45% to $192,109,298 in sales
- The median price for homes increased 16.9% to $308,500
- New listings increased 12.6% to 475 listings
- Active listings dropped 46.4% to 556 listings
- Pending sales skyrocketed 69.7% to 577 pending sales
- Housing inventory decreased 1.7 months to 1.5 months
Bastrop County
Bastrop County home sales made modest gains in August. However, new listings and sales dollar volume made considerable gains.
- Home sales increased 4.1% to 126 sales in Bastrop County this August
- Sales dollar volume increased 23.8% to $38,193,673
- Median price for residential homes increased 16% to $278,500
- New listings jumped 29.7% to 144 listings
- Active listings declined 24.4% to 260 listings
- Pending sales spiked 98% to 200 pending sales
- Housing inventory decreased by 1.0 months to 2.7 months
Caldwell County
In Caldwell County, the median home price barely increased while home sales made strong gains. Sales dollar volume made a respectable gain and new listings made a strong increase.
- August Caldwell County home sales increased 16.1% to 36 sales
- Sales dollar volume increased by 7.4% to $8,392,577
- The median home price for a Caldwell County home dropped 1.7% year over year to $212,900
- New listings increased 19.4% to 43 listings
- Active listings decreased 27.4% to 77 listings
- Pending sales rose 53.9% to 40 pending sales
- Housing inventory decreased 1.5 months to 2.9 months
For homeowners who are considering a home sale, we urge you to reach out to us for a complimentary consultation. The market is in dire need of housing inventory to accommodate buyers in need of a home. We are happy to consult with you on your real estate goals and how we can help you achieve them in today’s market. Take advantage of professional and experienced insight to help you determine if listing your home now is right for your unique situation.