What is typically known as a slow month after the busy summer selling season, this September bucked the trend with record highs.
The Greater Austin housing market continues to thrive despite economic challenges and shrinking house inventory, according to the latest Central Texas Housing Market report released by ABoR. Last month, home sales across the Austin-Round Rock MSA skyrocketed 27% year over year to 3,959 sales. Typically, home sales are slower during this time of year. but because of decreased activity in response to COVID-19, summer selling has extended into the fall season.
The five-county MSAs outlined the market’s strength as sales dollar volume increased by a staggering 48% to $1.8B, while the average price jumped 12.1% to $352,000.
“The housing market is pumping billions of dollars into our region’s economy at a time it’s greatly needed, but we also need to be cognizant of the impact such rapid activity is having on record-low inventory levels and rising home prices,” said 2020 ABoR president Romeo Manzanilla. “Austin’s suburban markets have historically offered housing stock at lower price points that created opportunity for people when buying or renting offered housing stock at lower price points that created opportunity for people when buying or renting inside Austin city limits was not an option. Now, these markets are showing the same gains in prices and declines in inventory as we’re used to seeing inside Austin, putting pressure on the market as a whole.”
Homes across Austin spent an average of 13 days on the market, 15 fewer days than this time last year.
Austin regional director for Zonda Vaike O’Grady said the city has limited residential lots, which is forcing developers to relocate to the suburbs. Developers are now struggling to keep up with the demand for construction in suburban areas.
“We need to remove the barriers to new construction and open up more building opportunities across the region to create more inventory for buyers,” said Vaike O’Grady. “Austin’s economy is bouncing back better than most cities, allowing more people to make a move to a home that meets their needs. To solve Austin’s housing supply and affordability challenges, we need to commit to streamlined review and approval processed for new construction.”
“The Austin area needs more housing supply at all price points in order to stabilize home price growth and help make homeownership accessible, especially for first-time homebuyers,” Manzanilla said. “REALTORS® will continue working aggressively to navigate a competitive, fast-moving housing market on behalf of their clients.”