Home sales in Austin experienced a double-digit percent increase in October—creating a new record even as the inventory of single-family homes in Austin dropped to an all-time October low—according to the latest monthly report from the Austin Board of REALTORS® (ABoR).
The Central Texas Housing Market Report, which underscores the need for more diverse housing options in the city, was released just days after officials reviewed the latest draft of a revised land development code. The October report for Austin reflects a 14.5% increase year over year to 835 home sales, marking more homes sold than any October on record.
"Austin can no longer sustain its current rate of growth. With an average of 100 people moving here every day, the demand for housing is growing much faster than the number of homes available," Kevin P. Scanlan, 2019 ABoR president, said. "Homes are hardest to find in the urban core where people can live closer to work and transit. Therefore, we need to plan more efficiently—not just in Austin's urban core but in transit corridors and activity centers as well."
Imagine Austin, a 30-year comprehensive plan for the city’s growth, was adopted in 2012. But since then, the median price of a detached single-family home in the city’s urban core increased 67%—from $301,900 to $505,000. Emily Chenevert, chief executive officer of ABoR, said that finding the right land development code for the city is key to solving Austin's affordability crisis and ensuring sustainable growth for our region.
“In just the few years since Imagine Austin was passed, our community has already changed drastically,” she said. “We’ve lost precious time trying to find the perfect land development code solution, while home prices continue to rise and traffic continues to worsen. What we need right now is progress, through a working code that protects private property owner rights and ensures our region’s future growth is sustainable.”
According to the October housing market report, home sales are growing not just in the city of Austin, but across the region.
Austin-Round Rock MSA
In the Austin-Round Rock MSA, single-family home sales in October experienced a double-digit percent increase of 16.8% to 2,721 home sales. Sales dollar volume jumped 23.3% to $1,084,580,726. The median price for single-family homes increased 7.4% to $327,500. During the same period, new listings increased 8.4% to 3,067 listings and pending sales spiked 25.2% to 2,866 pending sales. However, active listings decreased 12.1% to 6,381 listings. Monthly housing inventory declined 0.5 months year over year to 2.3 months of inventory.
City of Austin
In the city of Austin, the median price for a single-family home increased 8.9% to $405,000—the highest median price for any October on record.
“If you restrict density and resist growth, especially in a rapidly growing community like Austin, you’re going to drive home prices up. That means everyone below a certain income level won’t be able to afford to live in the community,” Jon M. Roberts, principal at TIP Strategies, Inc., said. “The more a community advocates for no-growth and restricting density, the more exclusive that community is going to become.”
The city’s escalating demand and record-breaking median home price resulted in a 21.4% increase in sales dollar volume, raising October’s total to $407,873,084. During the same period, new listings decreased 5% to 840 listings; active listings decreased 25.1% to 1,229 listings; however, pending sales increased 8.4% to 745 pending sales. Housing inventory decreased 0.6 months year over year to 1.5 months of inventory.
At the county level, single-family home sales jumped by 20.8% to 1,403 sales and sales dollar volume skyrocketed by 27.8% to $667,953,401. The median price for single-family homes rose 9.1% year over year to $385,000. During the same period, new listings increased 4.7% to 1,473 listings, while active listings decreased 16.6% to 2,743 listings. However, pending sales increased 18.9% to 1,325 pending sales. Monthly housing inventory decreased 0.5 months year over year to 2.1 months of inventory.
In Williamson County, October single-family home sales rose 14.3% to 888 sales; sales dollar volume experienced a double-digit increase of 19.7% to $286,068,265. During the same period, the median price for single-family homes increased 4.2% to $295,000. New listings increased 10.8% to 1,066 listings while active listings decreased 13.2% to 2,250 listings. Pending sales spiked 29.6% to 1,046 pending sales. Housing inventory declined 0.6 months year over year to 2.3 months of inventory.
In October, Hays County single-family home sales increased 11% to 312 sales and sales dollar volume increased 9.6% to $100,655,239. The median price for a single-family home increased by 7.1% to $266,000. During the same period, new listings increased 6.6% to 372 listings while pending sales jumped 31.2% to 345 pending sales. Active listings dropped 5.2% to 931 listings. Housing inventory decreased 0.4 months to 2.9 months of inventory.
In October, Bastrop County single-family home sales increased 4.9% to 86 sales. Sales dollar volume increased 11.5% to $23,162,486. The median price for a single-family home had a double-digit percent increase of 14.1% to $249,900. During the same period, new listings spiked 29.8% to 122 listings; active listings rose 14.3% to 352 listings; and pending sales skyrocketed 40% to 119 pending sales. Housing inventory increased 0.1 months to 3.8 months of inventory.
In Caldwell County, October single-family home sales jumped 14.3% to 32 sales and sales dollar volume spiked 19% to $6,748,695. The median home price increased 0.9% year over year to $193,050. During the same period, new listings skyrocketed 88.9% to 34 listings; active listings increased 15.4% to 105 listings; and pending sales sharply increased 47.6% to 31 pending sales. Housing inventory rose 0.7 months to 4.3 months of inventory. (Source: ABOR Monthly Report)