AUSTIN, TX —According to the Austin Board of REALTORS® (ABoR) February Central Texas Housing Report, closed listings increased 11.3% year over year to 2,581 sales across the Austin-Round Rock MSA last month. Combined with a new record median price, which rose 27.9% year over year to an all-time high of $499,995, 2022 is shaping up to be a big year for the MSA’s housing market.
“February was a very active month for our housing market as sales price records continue to be broken,” Cord Shiflet, 2022 ABoR president, said. “We’re hearing from economists that last month’s numbers are a potential harbinger of a big year ahead even as our market continues to deal with insufficient supply compared to demand resulting in the steady cycle of home price increases.”
Across the MSA in February, sales dollar volume increased 34% year over year to $1,564,737,417 while new listings increased 10.4% to 2,834. At the same time, active listings decreased 4.1% year over year to 1,240 listings, while pending sales increased 20.3% to 2,967 across the MSA. This jump in pending sales indicate that March home sales growth could be equally strong as February.
Housing inventory across the five-county area increased 0.1 months year over year to 0.4 months of inventory and homes spent an average of 28 days on the market, down 4 days when compared to February 2021.
Mark Sprague, state director of information capital at Independence Title, explained how the recent global unrest might impact housing affordability and the economy both nationally and locally.
“The uncertainty in eastern Europe has stalled rising interest rates and contributed to keeping mortgage rates domestically below 4%, which is historically low. Ultimately, however, the already accelerated rate of inflation is expected to rise even further—hurting renters, buyers and builders who continue to grapple with fast-rising construction costs.”
Sprague added that the conflict in eastern Europe will ultimately have an impact on the construction supply chain, as Ukraine sits on several material reserves such as iron ore, but notes it’s better to be in Texas than anywhere else.
“Material and labor costs are on pace to rise from 4% to 5% monthly through 2023 and potentially further. Although the possibility that housing inventory will continue to fall is now even more likely, strong housing demand and Austin’s diverse economy will ensure the housing market’s economic impact remains steady. This places our region in a better place than most globally.”
As the market continues to take national stage as one of the most dynamic and complex housing markets in the U.S., Shiflet points to the importance of working with a REALTOR® whether buying, selling, or renting a home.
“Navigating our market can be a daunting and intimidating process, which is why it’s critical to work with a REALTOR® who can be a trusted advisor and help you make quick, confident decisions. With access to the market’s most complete and up to-date market data – the MLS – a REALTOR® can help you identify potential purchase options, shape a competitive offer and most importantly, negotiate tirelessly on your behalf throughout the transaction.”
City of Austin
In February, home sales increased 2.5% to 834 sales, while sales dollar volume increased 20.2% to $578,876,715. At the same time, median price rose 15% to $565,000, a record for the month of February. Last month, new listings increased 10.2% to 887 listings, active listings dropped 26.8% to 371 listings, while pending sales also rose by 6.6% to 873 pending sales. Monthly housing inventory decreased 0.1 months year over year to 0.3 months of inventory.
In Travis County, home sales also increased 3.9% to 1,292 sales, while sales dollar volume increased 17.2% to $883,994,216. Last month, median price in Travis County rose 15.1% year over year to $541,050 as new listings increased 5.9% to 1,340 listings and active listings declined 24.2% to 573 listings. Pending sales rose 8.6% to 1,348 as monthly housing inventory decreased 0.1 months year over year to 0.3 months of inventory.
February home sales rose 32.3% to 857 sales in Williamson County. Sales dollar volume skyrocketed 78.2% year over year to $451,852,940. The median price rose 32.7% to $479,000 as new listings jumped 10.8% to 921 listings. During the same period, active listings rose 14.6% to 307 listings and pending sales also increased 26.7% to 960 pending sales. Housing inventory rose 0.1 months to 0.3 months of inventory.
In Hays County, February home sales increased 7.6% to 326 sales, while sales dollar volume rose 49.1% to $183,436,010. The median price for homes jumped 42.5% to $427,350. During the same period, new listings increased 12% to 384 listings, while active listings rose by 46.5% to 233 listings. Pending sales increased 37.3% to 434 pending sales as housing inventory ticked up 0.2 months to 0.6 months of inventory.
In February, Bastrop County home sales declined 24.8% year over year to 79 sales, while sales dollar volume rose 6.6% to $35,390,095. The median price also skyrocketed 61.4% to $443,835 as new listings increased 25.2% to 139 listings. Active listings increased 19.8% to 97 listings and pending sales increased 37.3% to 173 pending sales. Housing inventory increased 0.2 months to 0.8 months of inventory.
In Caldwell County, February home sales increased 42.1% to 27 home sales, and sales dollar volume more than doubled, rising 128.6% to $9,062,751. The median home price rose 57.4% year over year to $314,695. At the same time, new listings rose by 233.3% to 50 listings as active listings ticked up 3.5% to 30 listings. Pending sales rose 108% to 52 pending sales, and housing inventory stayed flat at 0.9 months of inventory.
For more information or to download the February 2022 Central Texas Housing Market Report, visit ABoR.com/MarketStatistics.