MARKET UPDATE: CENTRAL TEXAS HOUSING MARKET CONTINUES TO SOAR DESPITE LOW INVENTORY
According to the latest (September) Central Texas Housing Market Report released by the Austin Board of REALTORS® (ABoR), the Central Texas housing market continues to exhibit strength despite economic challenges and shrinking housing inventory. In September, home sales across the Austin-Round Rock Metropolitan Statistical Area (MSA) soared 31.5% year-over-year to 3,892 sales. Historically, this time of year home sales are lower, but because of decreased activity during the shelter-in-place orders due to the pandemic, the summer selling season extended into September.
A majority of the real estate projects we finance are in the Austin area, so we think you will find the September year-over-year statistics in the Austin MSA below encouraging.
|Austin MSA September 2020 Year-Over-Year Statistics|
|Sales Dollar Volume||Up 51%||$1.77 billion|
|Closings||Up 31%||3,892 closings|
|Avg. Sales Price||Up 12%||$355,000|
|Avg. Days on Market||Down 14 days||37 days|
|New Listings||Up 5%||3,539|
|Pending Sales||Up 28%||3,767|
|Months of Inventory||Down 1.3months||to 1.2 months|
These statistics are simply amazing, especially the increase in closings (up 31%) and drops in days on market and months of investory. Vaike O’Grady, Austin regional director for Zonda (formerly Metrostudy), said the city of Austin has a limited number of residential lots. This is forcing developers to move to the suburbs where land is more available and less expensive.When it comes to construction in suburban markets, homes simply can’t be put on the ground fast enough to meet demand.
“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,”Romeo Manzanilla, 2020 ABoR president said. “Austin’s suburban markets have historically 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.”
In summary, we are blessed to be doing business and investing in Texas and, in particular, the central Texas region.