The price of Austin homes is going up — just not as quickly as it has been for the past few years. The median price for a home in August in the Austin-Round Rock metro area has increased 5.5 percent year-over-year, to $469,039, according to the Austin Board of Realtors August 2022 Central Texas Housing Market Report.
Active listings in the five-county area, meanwhile, jumped 170 percent since the same period last year. The report calls a "normalizing" of the market; it now has three months' of inventory — the highest since September 2018, though still well short of the 6 to 6.5 months professionals say is necessary for a healthy market.
Although "homes are still selling close to list price," according to ABoR's Cord Shiflet, August residential sales declined 23 percent year-over-year to 2,924, and sales dollar volume dropped 14.7 percent to $1,844,350,661. While listings increased overall, new listings dipped 6.3 percent to 4,121 listings.
None of that means would-be Austin home buyers should get excited. The vaunted economic growth of both the metro area and the state mean that “Austin, along with the other Texas metropolitan areas, may continue to feel the effects of the previously unsustainable housing market due to the lack of inventory," Independence Title's Mark Sprague said.
“Austin, along with the other Texas metropolitan areas, may continue to feel the effects of the previously unsustainable housing market due to the lack of inventory,” Sprague said. A record number of corporate relocations within the past year alone put Austin on an unsustainable course when it comes to having enough housing for the number of jobs and people coming to Central Texas in the next five years, Sprague said.
“It's important to note that this was demand-driven, and residential homes have not lost value,” Shiflet said. “Regionally, the Central Texas housing market is returning to the robustness of the 10 years before the COVID-19 pandemic.”
Below are ABoR's stats broken down by city and county.
City of Austin
In August, home sales decreased 30.4% to 858 sales, while sales dollar volume decreased 22.6% to $616,474,222. At the same time, median price rose 3.6% setting a record for the month of August of $555,000 for the City of Austin. Last month, new listings slightly dropped 12.7% to 1,171 listings, active listings skyrocketed 125.9% to 2,356 listings as pending sales declined by 26.9% to 847 pending sales. Monthly housing inventory increased 1.5 months year over year to 2.4 months of inventory.
In Travis County, home sales decreased 28.9% to 1,361 sales, while sales dollar volume decreased 18.7% to $1,017,967,018. Last month, median price in Travis County rose 8.6% year over year to $570,000 as new listings decreased 10.9% to 1,885 listings and active listings ballooned 139.8% to 4,096 listings year over year. Pending sales declined 27.3% to 1,326 as monthly housing inventory increased 1.7 months year over year to 2.7 months of inventory.
August home sales decreased 25.2% to 963 sales in Williamson County. Sales dollar volume declined 17.7% year over year to $519,535,063. The median price increased 8% to $475,000 as new listings ticked up 0.9% to 1,455 listings. During the same period, active listings soared 211.4% to 3,139 listings while pending sales dropped 28.2% to 929 pending sales. Housing inventory rose 2.1 months to 3.0 months of inventory.
In Hays County, August home sales ticked up 0.2% to 436 sales, while sales dollar volume slightly also increased 7.0% to $236,053,526. The median price for homes increased 9.9% to $430,675. During the same period, new listings declined 19.1% to 501 listings, while active listings skyrocketed by 177.2% to 1,239 listings. Pending sales decreased 8.3% to 430 pending sales as housing inventory jumped by 2 months to 3.1 months of inventory.
Last month, Bastrop County home sales decreased 15.1% year over year to 118 sales, while sales dollar volume fell by 2.6% to $50,428,898. Median price increased 20.1% to $400,000 as new listings rose 28.3% to 213 listings. Active listings soared 231.9% to 468 listings as pending sales also increased 16.1% to 144 pending sales. Housing inventory increased 2.6 months to 3.7 months of inventory, the highest level of inventory across the MSA in August.
In Caldwell County in August, home sales increased 91.7% to 46 home sales, and sales dollar volume rose 147.2% to $18,043,319. The median home price rose 10.2% year over year to $331,044. At the same time, new listings increased by 34.0% to 67 listings as active listings increased 139.5% to 103 listings. Pending sales dropped 2.0% to 48 pending sales, and housing inventory increased 1.1 months to 2.5 months of inventory.