According to the most recent Austin area real estate report from the Austin Board of REALTORS®, (ABoR) the decade between 2010 and 2019 was one of growth and expansion for the Austin area. Economically, the metro saw the largest GDP growth of any in the nation. Housing statistics followed the economic growth with the largest sales numbers the area has ever recorded. Austin also has the rare distinction of being fully recovered from the economic recession that was caused by the housing bust of 2008.
“We’re very fortunate to have our economy fully recovered from the economic crisis that affected the nation in the last decade,” said David Brodsky, broker/owner of the boutique real estate brokerage, David Brodsky Properties. “Our economic growth has fueled our housing boom – as it typically does. Since we’re expecting a collection of corporations to move to or expand in Austin over the next decade, we can probably expect to see our local economy and real estate market continue to be strong,” he said.
“However, it’s likely that our growth will remain at a more level pace. Our economic and real estate growth has happened at a more steady rate in recent years. That’s a sign of healthy moderation rather than signaling a downturn,” explained Brodsky.
In fact, over the last decade, no other metro has come close to Austin’s GDP growth. The local economic expansion can be clearly attributed to the region’s real estate boom. That’s because as more jobs are added to the metro, more job seekers are moving from out of state to fill the employment demand.
“Austin’s GDP, which grew 117% over the last 20 years, helped the real estate market recover from the recession,” explained Mark Sprague, state director of information capital at Independence Title. “The closest metro out of the top 50 in the U.S. to see this type of growth was Silicon Valley, which grew its GDP by 99% during the same period.”
As we move further into the new year and new decade, we’ll likely see some challenges in the real estate market as it inevitably shifts. Homes will continue to sell, albeit at a slower pace. Homebuyers and sellers will find themselves facing new and unique challenges as they navigate changing market dynamics.
An experienced real estate agent will continue to play a greater role in the search for a new home or in the endeavor to sell one at the top of the market and with as little stress as possible.
“A professional real estate agent is worth their weight in gold,” said Brodsky. “Real estate consumers will understand this more clearly as we move into the new decade with new online services that are being offered to buyers and sellers. The public will see for themselves the utility of an agent with a strong consultative value proposition. The role of the real estate consultant will be even more critical to a successful real estate transaction.”
If buying or selling Austin area real estate is one of your goals for 2020, reach out to an experienced local real estate professional early to develop a strong strategy.
Austin-Round Rock MSA
According to the ABoR report, the Austin-Round Rock Metropolitan Statistical Area (MSA) is now the 30th largest metro in the U.S. The median price for single-family homes has grown more than two percent in 2019. Real estate growth can be seen in all channels and is doing well, although inventory remains a predicament.
- Single-family homes increased by 2.6% year-over-year to $318,000 in 2019
- Home sales increased by 7.2% to 33,084 sales
- New listings for the five-county MSA increased year over year by 1.4% to 39,309 listings
- Active listings decreased 4.3% to 6,216 listings
- Pending sales increased by 10.5% to 33,976 sales
In the past decade, sales volume in the Greater Austin area increased by 9.2% to 2,608 sales in December 2019, while inventory decreased by 0.5 months to 1.7 months of inventory. Growing demand pushed the median price of a single-family home to $323,000, a 7.1% increase from December 2018.
City of Austin
In December 2019, Austin’s median home price increased 8 percent over last December. Home sales increased by nearly 9 percent. Housing inventory decreased in December 2019 from December 2018.
- Median home price increased 8% to $405,093 compared to the previous year
- Single-family home sales rose by 8.9% to 738 homes
- Housing inventory decreased in December from 0.5 months to 0.9 months
In Travis County, the median price for a single-family home grew by about 6%. Single-family home sales increased by about 8%. Monthly housing inventory dropped by less than a month.
- The median price for single-family homes grew by 6.3% to $369,000 for 2019 vs. 2018
- Single-family home sales grew 8.8% to 1,257 sales
- Housing inventory went from 1.9 months to 1.4 months in December 2019
Median single-family home prices in Williamson County remain significantly lower than the median in Travis County and the City of Austin. However, home sales saw healthy growth.
- Williamson County’s median home price increased in December 4.3% to reach $290,280
- Single-family home sales in Williamson County increased by 14.1% to 970 sales in 2019 compared to 2018
- Housing inventory declined 0.5 months year over year to 1.8 months
In Hays County in December 2019, the median home price increased while housing inventory decreased from the December prior.
- In Hays County, the median home price increased by 1.5% to $269,000 in 2019
- Single-family home sales increased by 2.2% to 279 sales
- Housing inventory decreased 0.2 months to 2.6 months of inventory
As Bastrop County continues to recover from a devastating fire that destroyed over 1,600 homes in 2011, the area is seeing increasing development and homes into the new decade. The area’s median home price increased by 2% in December 2019 over the previous December. However, home sales dropped in the area in December 2019 from December 2018. Despite that, the area has seen an overall increase in home sales over the past 10 years.
- In December, the median home price grew by 2% to $234,500
- Single-family home sales dropped 3.4% to 86 sales
- Housing inventory increased by 0.1 months to 3.3 months in December
Home sales dropped precipitously in Caldwell County in December. Despite that, the median home price increased and sales increased by 17%. The monthly housing inventory grew by 0.5 months in December.
- Median home price increased by 17.1% to $205,000 in December 2019
- Bastrop single-family home sales dropped 23.8% to 16 sales in December 2019
- Single-family housing inventory grew by 0.5 months in December 2019 to reach 3.8 months
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