The Austin area real estate outlook is positive for this year despite a decline in sales this April. Recent statistics from the Austin Board of REALTORS® (ABoR) and expert analysis point out the negative effects of the COVID-19 pandemic on the April housing numbers. At the same time, real estate experts shared an optimistic outlook for local real estate for the rest of the year.
The report also pointed out that the Austin real estate market was not as negatively affected as the national housing market. Also, despite the dip in sales, the median home price increased this April which indicates continued strong housing demand.
“Our housing market has fared very well through this difficult time,” said David Brodsky, broker/owner of the Austin boutique real estate brokerage of the same name. “While there are still very real concerns about protecting the public health and safety, real estate professionals and consumers have done a good job of adjusting to the trying times to provide services to those needing to purchase or sell a home.”
Overview of Austin Real Estate Report
Residential sales throughout the five-county Austin-Round Rock Metropolitan Statistical Area (MSA) decreased 21.6% to 2,611 sales this April. Sales dollar volume dropped 18.3% to $1,060,228,668. A 7.3% decline in active listings to 6,349 listings drove housing inventory down further to 2.1 months, 0.2 months lower than this time last year. At the same time, the median sales price increased 3.2% to $325,000. Homes spent nine fewer days on the market, or an average of 43 days.
“We anticipated a sharp decline in April home sales activity, as it directly correlates with the decline in listings activity recorded in March due to government stay-at-home orders,” ABoR President Romeo Manzanilla said. “Even with the impact to home sales, homes still spent less time on the market and sold at higher prices than last April. Austin’s housing demand is undeterred, and possibly strengthened by declining inventory.”
While declining listing activity in April 2020 could cause lower home sales in May, Austin housing experts maintain a positive Austin real estate outlook. The steps that are being taken to reopen the Austin economy are likely to have an impact on the Austin real estate market.
Austin Real Estate Outlook Remains Optimistic
Lawrence Yun, chief economist and senior vice president of research at the National Association of REALTORS®, shared his optimism in the ABoR report. He said that the Austin housing market has not been as negatively affected as the national housing market. Later in the year, the local market could rebound to the activity seen in 2019.
“As the economy steadily reopens, expect more listings to pop up, which will help ease the housing shortage. By the end of this year, home sales could be at levels comparable to 2019,” Yun said. “The local economy will also get an additional boost from more home construction that is needed for improving the market going into the next year,” Yun concluded.
Manzanilla supported Yun’s optimism with his own positive Austin real estate outlook. “It could have been much worse. Efforts to recognize real estate as an essential business helped lessen the negative impact of the pandemic during April; now listing and showing activity is already on the rise again. We’re hopeful this growth will continue in the coming weeks and months.”
Austin Area Real Estate Statistics
Compared to April 2019, residential sales in the five-county Metropolitan Statistical Area (MSA) were down. Sales dollar volume dropped 18.3%. Active listings and new listings were both down.
- Residential sales decreased by 21.6% to 2,611 sales
- Sales dollar volume fell 18.3% to $1,060,228,668
- Active listings declined 7.3% to 6,349 listings
- Inventory decreased by 0.2 months to 2.1 months
- Median sales price increased 3.2% to $325,000
- pending sales declined 25% to 2,801 sales
- Homes spent 9 fewer days on the market compared to last April, or an average of 43 days
City of Austin Home Sales Statistics
In the city of Austin, the median price for residential homes experienced a double-digit increase in April. The sales price increase occurred despite a precipitous drop in the number of sales and sales dollar volume. New and active listings also declined.
- City of Austin median home sales price increased 12.3% year over year to $421,000
- Residential sales decreased by 33.1% to 759 sales
- Sales dollar volume dropped by 23.9% to $387,921,787
- New listings decreased 24.8% to 1,158 listings
- Active listings fell 6.2% to 1,631 listings
- Pending sales declined 39% to 814 sales
- Monthly housing inventory decreased 0.1 months year over year to 1.6 months
- At the county level, residential sales declined 28.6% to 1,223 sales
- Sales dollar volume dropped 23.7% to $602,124,601
- The median price for residential homes increased 9.7% year over year to $395,000
- New listings decreased 26.5% to 1,779 listings
- Active listings declined 12.8% to 2,929 listings
- Pending sales also dropped 34.4% to 1,331 pending sales
- Monthly housing inventory decreased 0.3 months year over year to 1.9 months
- April residential sales in Williamson County decreased by 23.1% to 887 sales
- Sales dollar volume declined 19.2% to $292,880,025
- The median price rose by 6.6% to $300,000
- New listings declined 16.4% to 1,140 listings
- Active listings slightly decreased by 4.4% to 2,046 listings
- Pending sales decreased by 17.8% to 982 pending sales
- Housing inventory declined 0.2 months year over year to 2.0 months
Contrary to the statistical home sales performance of the rest of the MSA, Hays County residential sales in April made a surprising increase. Sales dollar volume increased in tandem. Both new and active listings increased as well.
- Residential home sales increased by 16.2% to 395 sales
- Sales dollar volume jumped 18.6% to $136,147,504
- The median price for residential homes declined by 1.6% to $284,950
- New listings increased 4.4% to 475 listings
- Active listings increased 4% to 945 listings
- Pending sales slightly decreased by 1.9% to 368 pending sales
- Housing inventory decreased 0.1 months to 2.8 months of inventory
- Bastrop County residential sales dropped 6.5% to 87 sales in April
- sales dollar volume increased 3.1% to $24,229,255
- The median price for residential homes increased by 10.6% to $260,000
- New listings tumbled 41.7% to 98 listings
- Active listings slightly increased by 0.9% to 339 listings
- Pending sales fell 9.3% to 98 pending sales
- Housing inventory decreased 0.3 months to 3.6 months
- April residential sales declined 36.7% to 19 sales in Caldwell County
- Sales dollar volume decreased by 45.2% to $4,095,899
- The median home price slightly dropped 1.9% year over year to $202,500
- New listings fell by 51% to 24 listings
- Active listings decreased 10% to 90 listings
- Pending sales declined by 12% to 22 pending sales
- Housing inventory decreased 0.5 months to 3.6 months
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