Central Texas home sales started the decade with strong showings, according to the latest regional real estate statistics from the Austin Board of REALTORS® (ABoR) market report. Not only were single-family home sales up last month, but sales of attached townhomes appear to be on the increase as well. Romeo Manzanilla, 2020 ABoR president, explained that the challenging Austin real estate market has made buyers consider different housing types as inventory on single-family homes continues to remain critically low. An increase in the variety of housing products being purchased and the ever-strong Austin area housing demand highlight a dynamic regional real estate market that consumers should be prepared to navigate.
“Austin’s competitive housing market is changing the landscape of traditional homeownership. We’re seeing more homebuyers purchase condos and townhomes in an effort to live closer to the urban core or stay within their budget,” Manzanilla added. “Focusing only on single-family housing leaves out half of the story, especially in the city of Austin where multi-family housing options are not only desired but greatly needed.”
Growing Popularity of Townhomes and Condos
The growing popularity of condos and townhomes is great news for an area where land is becoming more expensive and the cost of development is increasing. For many consumers, condos and townhomes are an ideal housing option because they can offer a low-maintenance lifestyle that suits their needs. However, condos and townhome sales come with a unique set of factors that buyers should be educated on before they enter into a contract on this type of housing product.
“With all real estate transactions, there are aspects that consumers need to be aware of and consider during a sale or purchase,” explained David Brodsky, broker/owner of David Brodsky Properties. “Condo documents can have significant provisions or restrictions that you may not find with a single-family home. For example, condo associations are more notorious for restricting short term rentals than an HOA. Buyers who are interested in a condo or townhome should definitely enlist the professional services of a real estate agent who is knowledgeable in working with these types of transactions.”
Increased Sales Activity Leads to More Challenges for Consumers
Residential real estate statistics show that home sales in the Austin area increased by 8.5% from last January to 1,947 sales this January. Median home prices set a record for the month of January, increasing 4.8% to $308,000. Housing inventory fell to 1.6 months, putting upward pressure on home prices as buyers fight over what little inventory is available. Drops in both new and active listings occurred across the MSA. An increase in pending sales signals continued strong buyer demand and pressure on sales prices.
“While this January showed significant gains compared to January 2019, the beginning of the year is a traditionally slower time for new and active listings,” Romeo Manzanilla, 2020 ABoR president, said. “We expect to see a significant increase in activity in the spring when market activity should climb naturally.”
Although real estate statistics typically show that activity tends to increase as the spring season approaches, this year is setting itself apart. An increase in buyer activity in a market that’s been typified by a scarcity of housing inventory is being felt by both consumers and agents. The key to overcoming the challenging market is to start early and work with experienced professionals.
“Austin real estate has become noticeably more competitive in just the last month and a half,” said June Clark, Austin real estate strategist at David Brodsky Properties. “The market is changing rapidly. Buyers and sellers should be wary and be sure to work with a reliable agent with the skills to negotiate and educate them in this challenging market.”
She went on to share her recent experience with out-of-state relocation clients. Her clients have about 30 days of corporate housing available. In that time, they intended to find and purchase their Austin dream home.
“When they got here and started looking, they quickly realized that 30 days is definitely not enough time to find what they’re looking for,” Clark explained. “Our market has gotten so competitive that buyers should start early and prepare to house hunt for a while before finding an available home they love that’s in their price range. Talking to a lender before starting to look for homes is also key.”
Austin Area Real Estate Statistics
In the Austin-Round Rock MSA, January residential home sales and sales dollar volume increased over last January. Both new and active listings decreased while pending sales jumped more than 10%. The monthly housing inventory declined to under 2 months, according to the latest Austin real estate statistics.
- Throughout the Austin-Round Rock MSA, residential home sales increased 8.5% to 1,947 sales
- Sales dollar volume increased 9.6% to $726,157,216
- During the same period, new listings decreased 14.3% to 2,723 listings
- Active listings decreased 24.1% to 4,889 listings
- Pending sales jumped 13.1% to 2,956 sales
- Monthly housing inventory declined 0.6 months year over year to 1.6 months
City of Austin
In the city of Austin, the median price for residential homes experienced a double-digit percentage increase. Residential home sales increased as well as sales dollar volume. New and active listings decreased. Pending sales rose while the monthly housing inventory decreased.
- The median price increased 13.5% year over year to $384,750
- Residential home sales increased by 0.6% to 638 sales
- Sales dollar volume increased by 8.2% to $290,628,094
- New listings decreased 10.6% to 960 listings
- Active listings dropped 32.5% to 1,099 listings
- Pending sales rose 8.6% to 956 sales
- Monthly housing inventory decreased 0.5 months year over year to 1.1 months
This January, residential home sales were slightly up at the county level. Sales dollar volume and median home prices were up over the same time last year. As with the City of Austin and the MSA, new and active listings decreased this January.
- Residential home sales slightly increased by 2.9% to 1,001 sales
- Sales dollar volume increased by 3.5% to $431,960,522
- The median price for residential homes increased 7.8% year over year to $351,000
- New listings decreased 14.4% to 1,435 listings
- Active listings decreased 28.8% to 2,178 listings
- Pending sales increased 9.1% to 1,481 sales
- Monthly housing inventory decreased 0.6 months year over year to 1.4 months
Williamson County home sales increased this January, as well as sales dollar volume and median home price. New and active listings declined, which is a common theme among all areas throughout the MSA. Pending sales increased and housing inventory is down this January.
- Residential home sales increased by 11.6% to 654 sales
- Sales dollar volume jumped 15.3% to $202,314,400
- The median price for residential homes slightly increased by 2% to $279,990
- New listings declined 15.1% to 838 listings
- Active listings decreased 27.1% to 1,557 listings
- Pending sales increased by 11.4% to 990 sales
- Housing inventory declined 0.8 months year over year to 1.5 months
Real estate statistics show that home sales spiked in Hays County this January. Sales dollar volume showed a similar increase. Interestingly, the median price for residential homes declined. As with the rest of the MSA overall, new and active listings decreased.
- Residential home sales increased by 22.8% to 205 sales
- Sales dollar volume jumped 22.2% to $67,627,774
- The median price for residential homes declined by 2.6% to $255,000
- New listings dropped 19% to 298 listings
- Active listings decreased 15% to 745 listings
- Pending sales spiked 29.2% to 354 sales
- Housing inventory decreased 0.6 months to 2.3 months
In January, Bastrop County’s residential home sales increased by more than twenty percent. Sales dollar volume showed substantial gains and the median price for a home in the county increased more than ten percent. Statistics for new and active listings broke from the trend and increased.
- Bastrop County home sales increased by 22.2% to 66 sales
- Sales dollar volume sharply increased 42.2% to $18,081,527
- The median price for residential homes increased by 12.6% to $241,000
- New listings increased 3.6% to 116 listings
- Active listings rose 8.6% to 317 listings
- Pending sales spiked 28.8% to 94 pending sales
- Housing inventory decreased 0.1 months to 3.4 months of inventory
January residential home sales spiked in Caldwell County according to the latest real estate statistics. Sales dollar volume showed a substantial increase as well as median home prices. New and active listings increased in Caldwell County.
- Caldwell County residential home sales increased by 50% to 21 sales this January
- Sales dollar volume skyrocketed 188.8% to $5,924,220
- The median home price sharply increased by 62.1% year over year to $232,807
- New listings increased 9.1% to 36 listings
- Active listings increased 15% to 92 listings
- Pending sales rose by 94.7% to 37 sales
- Housing inventory rose 0.3 months to 3.7 months
Reach out to an Austin real estate strategist to get help with your 2020 real estate strategy. We’ll empower you with the data and the insight that you need to make well-informed real estate decisions. Get started early for the best chance of success this year.
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