Homebuying heartburn

Austin housing market heats up with record high prices in January 2022

Last month was the second-most active January on record for the Austin housing market.

Photo by Ariel Skelley/Getty

In the continuation of sticker shock for local homebuyers, the median sale price for a home in the Austin area soared by 30.4 percent from January 2021 to this January, according to a new report from the Austin Board of Realtors. Meanwhile, from December to January, median prices in some pockets of the region went down but other places saw month-to-month price gains.

The Austin Board of Realtors report shows the median sale price across the region reached $476,000 in January, a record high for that month. That’s down slightly from the $476,700 median sale price recorded in December.

“This was the second-most active January on record in our market,” Cord Shiflet, 2022 president of ABoR, says in a news release. “We need to make it easier to build homes across all price ranges in the region so that anyone who wants to own or rent a home has the opportunity to do so.”

“Recent housing development announcements across the region, like Trinity Ranch in Elgin and Prairie Lakes in Hays County, are welcome news, but our community — including elected officials — needs to do more to address the systemic issues we face when it comes to getting new homes built quickly and residential redevelopment projects completed faster,” Shiflet adds.

Here’s a look at median home prices throughout the Austin metro area in January.

City of Austin
In the city of Austin, the median home price rose 20.9 percent year over year to $550,000, a record for the month of January. That’s down slightly from $555,000 in December.

Travis County
Year over year, the median price in Travis County rose 23.8 percent to $530,000. That’s down significantly from $545,000 in December.

Williamson County
The median price climbed 42.2 percent to $460,000 from January 2021 to this January. That’s up from $450,000 in December.

Hays County
Hays County witnessed a 30.1 percent increase in the median home price, to $389,000, from January 2021 to this January. That compares with $395,070 in January.

Bastrop County
The median home price in Bastrop County skyrocketed 50.2 percent to $398,000 from January 2021 to this January. That’s well above the median price of $385,000 in December.

Caldwell County
In Caldwell County, the median home price jumped 31.3 percent to $315,000 from January 2021 to this January. That’s up considerably from $294,850 in December.

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Homebuyers can afford to be picky as Austin housing inventory rises

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Housing economist Clare Losey said the most significant factor affecting home sales in Austin is high mortgage rates.

The latest real estate report from Unlock MLS and the Austin Board of Realtors (ABoR) has revealed housing inventory is still on a steady rise in the Austin-Round Rock-San Marcos MSA, creating more choices for potential homebuyers as they navigate a high interest rate market.

Residential home sales dipped by a mere 1.5 percent year-over-year from October 2023, amounting to 2,248 closed sales in the Austin-Round Rock-San Marcos MSA. Median prices have also dropped to $430,000, or 3.2 percent less than this time last year. More than 3,300 new home listings were added on the market — a 7.4 percent increase from 2023 — bringing the total number of active home listings to 11,599.

According to Unlock MLS and ABoR housing economist Clare Losey, Ph.D., October's mortgage rates stood at 6.4 percent and are showing no signs of a significant drop in the near future. Even heading into 2025, Losey says potential homebuyers who are biding their time in the hopes of seeing rates plummet "may be in for a long wait."

"In the meantime, sellers must recognize that bringing buyers to the table requires a more aggressive pricing approach," Losey said. "Even in a more balanced market, buyers with limited purchasing power are struggling to meet current price expectations."

As for the overall health of the Central Texas housing market, 2024 Unlock MLS and ABoR president Kent Redding labeled recent news reports that called Austin "ground zero" for a downturn as an "extreme over-exaggeration."

"Austin led the state and nation in record-breaking home price growth and sales activity during the pandemic," Redding said. "For three years, near-zero housing inventory, numerous offers above list price and a rapid-paced market raised home prices and left little negotiating power for buyers. During this record-setting growth, ABoR and Unlock MLS consistently emphasized the unsustainability of the rapid growth, and now, our market is working to balance those extremes."

Central Texas housing trends in October 2024

In Travis County, 979 homes were sold last month — a slight 2.5 percent increase from last year. Median prices remained flat year-over-year at $510,000. Active home listings continued growing to 5,702 homes, which is 9.4 percent more year-over-year.

In Williamson County, 807 homes were sold in October, with median prices steadily dropping to $420,000. There were 1,028 new home listings on the market, showing a 4.5 percent increase from October 2023, bringing the total number of active home listings to 3,369.

Residential home sales dropped by nearly eight percent in Hays County in October, totaling 315 sales. Median prices also fell 5.5 percent year-over-year to $359,000. Active listings rose 6.6 percent year-over-year to 1,740 homes with the addition of 534 new listings on the market.

Meanwhile, 114 homes were sold in Bastrop County last month, which is 4.4 percent more than this time last year. Median prices dropped by a single percentage point year-over-year to $355,000. There were 654 active listings on the market in October, and 152 new home listings, representing a 1.3 percent slip in new inventory when compared to last year.

Only 33 homes were sold in Caldwell County in October to reflect a near 14 percent decline year-over-year from October 2023. Median prices fell to $262,990, which was a 13.5 percent decrease from last year. There were 136 active homes on the market last month, and 40 new homes added on the market.

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