Hot Housing Market

Austin housing market bounces back with skyrocketing summer sales

Austin housing market bounces back with skyrocketing summer sales

austin home for sale
The market is hot, and inventory is low. Photo courtesy of Realtor.com

It seems that nothing can truly slow down the Austin real estate market. The latest monthly report from the Austin Board of Realtors, released August 19, showcases the market's resilience amid the pandemic, thanks to double-digit growth in sales and home prices in July 2020.

Last month, home sales in the Austin-Round Rock metro area skyrocketed 21.5 percent year-over-year to 4,537 homes sold. Sales dollar volume jumped even more — 36.7 percent — to over $2 billion. At the same time, the metro's median home price grew 10.7 percent year-over-year to $353,000.

Inside Austin's city limits, things look similar. Austin home sales mirrored the metro area with a 21.4 percent year-over-year increase. In total, 1,470 homes were sold in the city. The median price jumped 11.3 percent over the previous year, to a steep $423,000. 

This flurry of activity has led to dangerously low inventory, ABoR notes, with the metro area, as well as the city of Austin, clocking in with only 1.7 months of inventory. "This extremely low level of inventory, when paired with continued demand across the region, has led to rising home prices, creating a very strong seller’s market," the report says.

Elsewhere in the metro, the median home price continues to grow significantly. Caldwell and Bastrop counties offer the most affordable homes, with median prices of $205,000 and $265,000, up 7.3 percent and 6.2 percent from last July, respectively. Hays and Williamson counties are sitting in the low $300s, with prices up 18.1 percent and 10.5 percent, to $310,000 and $314,995. Travis County exceeds the $400K mark, with the median price growing 10.3 percent to an astounding $411,412. 

Additionally, every county except Caldwell saw a double-digit increase in the number of homes sold in July 2020.

“July was a very encouraging month for the Central Texas housing market,” says Romeo Manzanilla, 2020 ABoR president, in a release.

“Strong home sales, combined with an increase in new listings and pending sales, are important benchmarks when analyzing the health of our market. A healthy housing market is vital to the overall economic recovery in the region, and with two consecutive months of positive numbers, we are growing more confident that this is sustainable and can help be the spark that gets our economy back on track.”