This week, the Austin Board of REALTORS® released the latest housing sales numbers for this March. According to their report, home sales throughout the Austin metro are stronger than ever in March. However, inventory remains critically low as developers struggle to keep up with the overwhelming Austin housing demand. Continued sales growth and price appreciation is being fueled by a favorable lifestyle and an economy that continues to demonstrate stability.
“Because Austin’s economy is thriving and the city continues to remain one of the most popular living destinations in the country, the housing market remains extremely tight,” Kevin P. Scanlan, 2019 president of the Austin Board of REALTORS®, said.
Austin Among the Fastest-Growing Cities
In fact, the years-long housing growth that Austin has experienced is a result of being one of the fastest-growing and most popular cities to live in for consecutive years. According to U.S. News & World Report, Austin has been the best city in the U.S. to live for no less than three years in a row. As a result, the housing market and the job market have been growing in tandem. That’s because businesses are seeing the benefit of setting up shop in a city with a favorable tax environment, a high concentration of educated workers and affordable lifestyle options.
However, Austin seems to be past its apex in terms of the rate at which home prices are increasing. In an interview with the Austin-American Statesman, David Brodsky, broker/owner of David Brodsky Properties, explained that although Austin real estate is still experiencing price appreciation, it’s not happening at record-breaking rates like it has in the past. The Statesman cited recent appraisal values that were released this year as evidence of the slowdown in price appreciation.
Appraisals Reflect Constrained Price Growth
Homeowners will be happy to know that numbers from appraisal districts across the metro demonstrate that double-digit home price growth is over, at least for now. Though that presents great news for homeowners who are eager to save on their property tax payments each year, homebuyers are being faced with home price growth that makes it more challenging to navigate the hot Austin real estate market.
As a result, questions about a bubble in the Austin real estate market have risen. Some argue that there is no doubt that the local real estate market is in a bubble. Brodsky assures anyone who is watching Austin real estate that the area residential housing market is not in a bubble.
“What we’re seeing now is real simple: we’re in a market that’s demonstrating pure supply and demand economics,” Brodsky said to the Statesman. “We continue to have companies relocating and people moving here from out of state, and as long as that trend continues I don’t see things slowing down any time soon.”
Austin Area Real Estate Statistics
Austin-Round Rock MSA
In March, the median home price increased slightly by 0.8% from $302,500 last year to $305,000 this March throughout the Austin-Round Rock MSA. During the same time, single-family home sales increased 1.9% to 2,740 home sales.
- Sales dollar volume increased year over year by 1.2% to $1,064,124,011
- New listings decreased 2.2% to 3,890 listings
- Active listings increased 8.4% to 6,060 listings
- Pending sales increased 18.4% to 3,378 pending sales
- Monthly housing inventory increased by 0.2 months to 2.4 months of inventory
City of Austin
In the city of Austin, housing sales numbers decreased across the board. Low inventory is pointed out as the culprit behind constrained sales this March. An abundance of building cranes accenting the downtown skyline is proving to do very little against the continually-high housing demand as a result of the city’s popularity with businesses and residents seeking a place to put down roots in the City of Austin.
- Single-family home sales decreased by 4.6% to 781 sales in March
- Sales dollar volume decreased slightly by 0.4% to $371,993,004
- New listings decreased 10.4% to 1,038 listings
- Active listings decreased 1.5% to 1,149 listings
- Pending sales slightly decreased by 1% to 902
As with the City of Austin, single-family home sales decreased in Travis County this March. Breaking from the trend is the median sales price for single-family homes in Travis County, which increased this March. Active listings also increased.
- Single-family home sale decreased by 4.4% to 1,309 sales
- Sales dollar volume decreased by 4.7% to $619,129,042
- Median price for single-family homes increased 1.4% year over year to $355,000
- New listings decreased 4.8% to 1,890 listings
- Active listings barely increased 0.1% to 2,632 listings
- Pending sales jumped 11.7% to 1,590 pending sales
- Monthly housing inventory remained flat at 2.1 months of inventory
In Williamson County, March home sales showed strong growth. Although the number of home sales and the sales dollar volume were both up considerably this year, the median price for a Williamson County home rose only slightly. New listings decreased in March.
- Single-family home sales increased 9.2% to 989
- Sales dollar volume experienced a double-digit increase of 11.6% to $311,389,148
- Median price for single-family homes slightly increased 0.5% to $279,300
- New listings decreased 1.9% to 1,320 listings
- Active listings rose 9.4% to 2,094 listings
- Pending sales spiked 24.9% to 1,244 pending sales
- Housing inventory increased 0.2 months year over year to 2.3 months of inventory
In March, Hays County home sales showed increases in every category. The number of single-family homes increased. Median price remained flat, however.
- Single-family home sales increased 10.8% to 328 sales
- Sales dollar volume increased 11% to $105,711,500
- Median price for a single-family home remained flat at $259,950
- New listings increased 3.4% to 486 listings
- Active listings rose sharply by 21.4% to 918 listings
- Pending sales jumped 25.9% to 403 pending sales
- Housing inventory increased 0.5 months to 3.1 months of inventory
Bastrop County single-family home sales and sales dollar volume both declined. Despite that, median price for a Bastrop County home were down this March. Active listings and pending sales rose though, in March.
- Single-family home sales declined 5.6% to 85 sales
- Sales dollar volume dropped 4.7% to $21,264,423
- Median price for a single-family home increased 8.7% to $233,750
- New listings steadily increased 8% to 148 listings
- Active listings spiked 50% to 324 listings
- Pending sales rose 25.3% to 109 pending sales
- Housing inventory increased 1.2 months to 3.8 months of inventory
Caldwell County single-family home sales were flat this March. There was an increase in pending sales and in months of inventory.
- Single-family home sales remained flat at 29 sales
- Sales dollar volume increased 18.6% to $6,491,132
- Median home price rose 26.6% year over year to $202,500
- New listings jumped 21.1% to 46 listings
- Active listings increased 22.7% to 92 listings
- Pending sales increased 18.5% to 32 pending sales
- Housing inventory increased 1.4 months to 3.9 months of inventory
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