It looks like another record-breaking year is going on the books for Austin real estate in 2019. The most recent home sales report from the Austin Board of REALTORS® shows that single-family home sales throughout the Central Texas area were significantly stronger in November than at the same time last year. Experts say that a housing decline is not likely to happen soon in the Austin region due to continued high demand and low inventory. Additionally, the dynamic of a thriving economy is pushing growth to the suburbs where land is more readily available and at a lower cost.
“This time last year, we expected the housing market would slow, but that’s not been the case. We’re seeing very strong numbers for new homes across the board,” said Vaike O’Grady, Austin regional director for Metrostudy. “Because Austin is severely constrained, home builders are moving outward in search of lower land costs and development opportunity. The surrounding counties are going to continue to emerge with the current demand.”
What’s Driving Housing Demand
However, suburban housing growth isn’t just about land availability. Developers seek out areas that have the potential to draw house hunters outside of Austin City Limits. The communities experiencing a population boom are those that have a unique identity and the core attributes of a great community. Moreover, they have their own flourishing economies.
“Suburban real estate growth isn’t just about affordability,” said David Brodsky, broker/owner of the eponymous boutique brokerage based in Southwest Austin. “Suburban real estate growth is the result of both economic and development factors which are not mutually exclusive. Austin continues to expand to the suburbs as the result of land availability supported by community development by production builders in these areas. It also happens that price points in these large suburban developments are generally lower than those within the Austin City limits as a result of their distance from the City of Austin and the larger supply of inventory of homes in these new communities under construction.”
Not only do home seekers and developers see the potential of establishing a base outside of central Austin, but corporations have caught on also. Major corporations are establishing a headquarters or increasing their presence outside of Austin’s Central Business District. This year, Apple broke ground on a $1 billion campus in a north Austin. South Korean semiconductor company, ENF Technology, is soon opening a headquarters in Kyle. Amazon has expanded its fulfillment center in San Marcos.
Breaking news reveals that Amazon is building a much larger fulfillment center in Pflugerville. Amazon is the latest in a list of businesses expanding in the communities surrounding Central Austin. The aforementioned tech companies are just a few that are collectively adding thousands of jobs to the local economy.
“Since job growth and housing demand rise and fall in tandem, the Austin real estate market is likely to experience continued job growth,” explained Brodsky. “It’s a result of the thriving local economy adding an increasing number of jobs each year. Because of the strong job growth and economic development, the Austin area is an ideal place for house hunters and job seekers.”
Austin-Round Rock MSA
In November, single-family home sales experienced double-digit growth throughout the Austin-Round Rock MSA. There was also a sharp rise in sales dollar volume while the median price for a single-family home showed modest gains. Inventory shrunk during that time and pending sales showed strong gains, signaling another year of growing home sales.
- Single-family home sales increased by 14.3% to 2,554 sales
- Sales dollar volume increased 18.3% to $984,201,220
- The median price for single-family homes increased by 1.7% to $305,000
- New listings decreased 0.5% to 2,351 listings
- Active listings decreased 14.7% to 5,744 listings
- Pending sales spiked 21.9% to 2,526 sales
- Monthly housing inventory declined 0.5 months year over year to 2.1 months
City of Austin
The median sales price for a home in the City of Austin increased by slightly more than 10% this November, reaching $405,000. That’s the highest median sales price for a home in Austin of any November on record. Both new and active listings decreased this year.
- The median price for a single-family home increased by 10.6% to $405,000
- Single-family home sales increased by 4.5% to 670 sales
- Sales dollar volume increased by 12.7% to $329,203,254
- The median price for single-family homes rose 10.6% year over year to $405,000
- New listings decreased 15.1% to 595 listings
- Active listings decreased 33.3% to 997 listings
- Pending sales jumped 14.1% to 688 sales
- Monthly housing inventory decreased by 0.6 months to 1.3 months
Single-family home sales rose almost 15% in November, while sales dollar volume increased by nearly 17%. The median sales price for a single-family home made a small uptick. New listings and active listings both decreased. Pending sales were up just over 17%.
- Single-family home sales rose 14.8% to 1,197 sales
- Sales dollar volume spiked by 16.9% to $553,727,472
- The median price for single-family homes slightly increased 0.6% year over year to $355,000
- New listings decreased 10.3% to 1,061 listings
- Active listings decreased 22.5% to 2,357 listings
- Pending sales increased by 17.1% to 1,164 sales
- Monthly housing inventory decreased 0.6 months year over year to 1.8 months
Williamson County was the only county in the Austin area that recorded an overall decrease in the median sales price for a single-family home. Additionally, new listings in Williamson County increased 5%, likely due to a surge of development in that area. Despite the increase in new listings, the single-family housing inventory is still down year-over-year.
- Single-family home sales increased by 13.2% to 927 sales
- Sales dollar volume jumped 18.6% to $290,815,364
- The median price for single-family homes slightly decreased by 0.4% to $278,000
- New listings increased 5% to 838 listings
- Active listings decreased 14.7% to 2,075 listings
- Pending sales spiked 32.5% to 959 pending sales
- Housing inventory declined 0.6 months year over year to 2.1 months
New listings increased almost 18% in Hays County, but that didn’t keep the inventory from decreasing slightly this November. The county sits at 2.8 months of inventory this year. Sales dollar volume increased more than 20% and the median price for a single-family home in Hays County rose by more than 3%.
- Single-family home sales increased by 11.4% to 303 sales
- Sales dollar volume increased 21% to $109,558,416
- The median price for a single-family home increased by 3.6% to $260,000
- New listings jumped 17.8% to 325 listings
- Pending sales increased by 17.9% to 303 sales
- Active listings dropped 3.9% to 894 listings
- Housing inventory decreased 0.3 months to 2.8 months of inventory
Inventory increased for single-family homes in Bastrop this November, pointing to increased development and interest from homeowners to take advantage of a strengthening housing market. The median sales price for a Bastrop single-family home increased more than 6% and sales dollar volume jumped more than 30%. Both new listings and active listings spiked more than 25% in the area.
- Bastrop County single-family home sales increased by 22.8% to 97 sales
- Sales dollar volume sharply increased 31% to $26,046,201
- The median price for a single-family home increased by 6.6% to $245,015
- New listings rose 17.8% to 106 listings
- Active listings spiked 26.4% to 350 listings
- Pending sales decreased 6% to 79 pending sales
- Housing inventory increased 0.5 months to 3.8 months of inventory
In Caldwell County, November single-family home sales spiked and sales dollar volume jumped more close to 50%. During the same period, new and active listings increased. Pending sales rose as did housing inventory, unlike the rest of the region.
- Single-family home sales spiked 53.9% to 20 sales
- Sales dollar volume jumped 45.2% to $4,115,368
- Median home price increased 4.5% year over year to $185,000
- New listings increased 40% to 21 listings
- Active listings increased 8.9% to 98 listings
- Pending sales rose by 50% to 21 pending sales
- Housing inventory rose 0.1 months to 3.9 months of inventory
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