In the latest Central Texas Housing Market Report from the Austin Board of REALTORS® (ABoR), sales numbers indicate a recovering market struggling with scarce Austin homes for sale. In May, residential real estate sales throughout the Austin-Round Rock Metropolitan Statistical Area (MSA) were down a second month in a row. However, pending sales showed strong gains in May, which indicate continued recovery for the Austin real estate market.
“Buyer demand has remained pretty strong throughout April and May, which is why homes are selling in fewer days and for a higher average price point than the same time last year,” said David Brodsky, broker/owner of the eponymous Austin real estate brokerage. “Relocation activity continues to be a demand driver of the market. At the same time, many potential sellers are hesitant to put their home on the market which is keeping inventory constrained,” he explained. “That’s leading to the current inventory selling faster and for higher prices.”
Mark Sprague, state director of information capital at Independence Title, shared his thoughts on the recent real estate statistics. His insight supported Brodsky’s analysis behind the constrained Austin home sales.
“If you compare Austin’s home sales to the majority of large cities in the U.S., you’ll find Austin’s market has remained strong,” Sprague said. “But, because sales numbers have a one-to-three-month lag time, it was no surprise May sales declined and we’ll likely see the same in June and July. The solution is increased housing stock. Until more homes are put on the market, we won’t see home sales recover anytime soon.”
However, the market is already signaling a comeback. Despite a decline in active listings and new listings that decreased inventory lower than in May 2019, pending sales increased significantly this May. Pending sales indicate that there were more homes that went under contract and are a direct result of increased buyer demand.
“Pending sales growth is the first sign of recovery, so the strong gains in May pending home sales throughout the MSA is encouraging,” concluded Manzanilla. “With continued population growth and pent-up demand for housing, our region’s housing market will ultimately rebound.”
City of Austin Home Sales Statistics
In the city of Austin, continued demand and scarce Austin homes for sale drove home prices up, as sales dropped due to fewer listings. Overall sales dropped off significantly and monthly inventory was down. However, the median price for a residential home in the City of Austin increased in May.
- The median price for residential homes was up 10.7% year over year to $424,050
- Total residential sales plummeted 36.6% to 826 sales
- Sales dollar volume decreased 32.5% to $418,410,453
- New listings were down 18.7% to 1,348 listings
- Active listings dropped 13.5% to 1,684 listings
- Pending sales decreased 4.9% to 1,216 pending sales.
- Monthly housing inventory was down 0.2 months year over year to 1.7 months
Barton Hills Home Sales
In the Barton Hills Community in South Austin, home sales statistics followed most of the dynamics of the City of Austin home sales numbers this May. Although active listings remained flat this May from the same time last year, the number of new listings decreased as well as the number of homes sold. Average sales price increased this May over last May.
- Active listings in Barton Hills remained flat at 7 active listings both this May and last.
- It took Barton Hills homes longer to sell this May than last May, reaching 51 days to sell this year. Barton Hills homes took 14 days to sell in May 2019.
- The average price per square foot jumped in Barton Hills this May, reaching $787 per square foot in May 2020 and $421 per square foot in May 2019.
- Average sales price for Barton Hills homes for sale was up from $1,101,850 last May to $2,025,000 this May.
- Sales dollar volume decreased from $5,509,250 in May 2019 to $2,025,000 this May.
Residential sales declined at the county level as well as the city level this May.
- Residential sales were down 33.8% to 1,319 sales
- Sales dollar volume made a whopping 35% decline to $644,917,945
- The median price for residential homes was up 4.7% year over year to $398,345
- New listings were down 17.1% to 2,162 listings
- Active listings declined 19.7% to 2,959 listings
- Pending sales numbers moved up slightly by 1.1% to 2,016 pending sales
- Monthly housing inventory decreased 0.5 months year over year to 1.9 months
- May residential sales decreased by 27.1% to 914 sales
- Sales dollar volume decreased 26.4% to $297,560,285
- Median sales price fell 2.7% to $290,000 in May 2020
- New listings made a significant decline of 20.1% to 1,269 listings this May
- Active listings declined 23.7% to 1,826 listings this May
- Pending sales grew 23.6% to 1,497 sales
- Housing inventory dipped by 0.7 months year over year to reach 1.8 months of inventory
In Hays County, May residential home sales fell after making an unlikely increase the month before when home sales throughout the MSA first showed signs of significant impact from measures taken to curb the spread of coronavirus. Despite that and other declines, pending sales made big gains throughout Hays County this May.
- Residential sales were down 19.1% to 340 sales
- Sales dollar volume decreased 20.5% to $115,545,478
- The median price for residential homes declined by 0.8% to $265,900.
- New listings contracted just slightly by 0.4% to reach 528 listings
- Active listings were down 8% to 890 listings
- Pending sales made a significant increase of 44% to reach 583 pending sales
- Housing inventory throughout Hays County decreased 0.5 months to 2.6 months
Residential sales in Bastrop County largely mirrored the performance of Hays County this May. Pending sales made strong gains while the number of sales declined. In Bastrop County, though, the median price for a residential home increased this May.
- Residential sales were down 13% to 100 sales
- Sales dollar volume decreased by 10.1% to $28,723,638
- The average price for residential homes made a 9.3% increase to reach $260,000
- New listings dipped 5.6% to 152 listings
- Active listings declined by 8.5% to 323 listings
- Pending sales jumped 29.1% to 151 sales
- Housing inventory was down 0.6 months to 3.5 months
Pending home sales in Caldwell County made the largest gains of any area in the Austin-Round Rock Metro this May. Active listings, new listings and the number of sales decreased. The median home price also declined throughout the county.
- May residential sales dropped 14.3% to 24 sales
- Sales dollar volume decreased by 13.5% to $5,077,774
- Median home price declined by 12.1% year over year to $179,900
- New listings fell by 7% to 40 listings
- Active listings were down by 14.6% to 88 listings
- Pending sales made an impressive 42.9% gain to reach 40 pending sales
- Housing inventory was down just slightly by 0.7 months to reach 3.5 months
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