Austin Real Estate Update | January 2021
I truly hope this finds you healthy and in good spirits. We made it through 2020 and I'm looking forward to a great 2021 for all. Thank you for trusting me with your real estate needs. Please think of me should you or your friends/associates have any real estate needs or questions, I'm never too busy to help. This edition features the most recent market updates as well as Austin news and events - Enjoy!
The Austin-Round Rock Metropolitan Statistical Area (MSA) posted a record-breaking month of sales this November, according to the latest Central Texas Housing Market Report released by the Austin Board of REALTORS® (ABoR).
MSA home sales jumped 23.8% year over year to 3,397 sales, indicating no sign of a typical season slowdown heading into the new year. Additionally, the median price across the MSA increased 19.7% to $365,000, and sales dollar volume spiked 49.3% to $1,576,178,429. At the same time, new listings increased 5.7% to 2,762 listings, active listings dropped 55.2% to 2,842 listings and pending sales increased 23.9% to 3,269 pending sales. For the first time ever, housing inventory dipped below one month across the five-county MSA, falling 1.2 months year over year to 0.9 months of inventory.
November 2020 marks an all-time low for housing inventory throughout the region and the first time that inventory across the five-county MSA has dipped below one month. The Real Estate Center at Texas A&M University estimates 6.5 months of inventory as a balanced housing market. “With a steady influx of job creation in the pipeline, the housing market will continue to post strong numbers well into 2021,” Mark Sprague, state director of information capital at Independence Title, said. “But, because Austin’s housing market is not slowing down, we will continue to see demand outpace the inventory available. This growth is not sustainable. The one variable that will hold the market back is the lack of inventory.” The median sales price in the city of Austin rose 10.1% to $433,493 in November. Residential sales increased 28.2% to 1,105 sales, as sales dollar volume jumped 47.2% to $600,496,127. During the same period, new listings increased 9.9% to 897 listings, while active listings decreased 28.2% to 1,064 listings, and pending sales jumped 16.8% to 1,038 pending sales. Monthly housing inventory decreased 0.4 months year over year to 1.0 months of inventory. In Travis County, residential sales increased 25.2% to 1,720 sales, while sales dollar volume spiked 54.6% to $961,793,770. The median price for residential homes rose 19.7% year over year to $425,000. During the same period, new listings increased 8.2% to 1,388 listings, active listings decreased 47.2% to 1,523 listings, and pending sales jumped 22.4% to 1,642 pending sales. Monthly housing inventory fell 0.9 months year over year to 0.9 months of inventory. (information courtesy of ACTRIS)
National Market Update Nationally, November Housing Starts rose 1.2%, to a 1.547 million annual rate, with single-family starts up 27.1% from a year ago. Building Permits did even better, up 6.2% to a 1.639 annual rate, with single-family permits up 22.2% from a year ago. Up seven straight months, single-family construction hit its highest level since 2007, 14.7% over its pre-pandemic high, more than a full V-shaped recovery. December builder confidence came in just off its November record high. After five months of gains, Existing Home Sales slipped 2.5% in November, but are still up 25.8% from a year ago and 16.1% above pre-pandemic levels. The problem is inventory, the lowest it’s been since 1999. Cooling off in November, New Home Sales fell 11.0% to a 0.841 million annual rate, yet 8.7% above January’s pre-pandemic high. Problem here is we need more finished new homes available for sale. November Pending Home Sales came in 16.4% higher than a year ago, the highest November on record. But the index of contracts signed on existing homes did slip a bit for the month due to tight inventories. CoreLogic tells us homeowners saw their equity gain more than $1 trillion year-over-year in Q3, a 10.8% annual boost. The average equity increase per homeowner was $17,000—the largest in six and a half years.
For 2021, experts see more home sales, driven by three tailwinds: low mortgage rates; demand from millennials, the largest demographic group in history; and more inventory, as home building grows and sellers come back to the market.
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