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Austin housing market’s hot home price surges show signs of cooling off

Austin housing market’s hot price surges show signs of cooling off

Home with for sale sign
Though Austin houses continue to fly off the market, home sales dipped slightly in August.  Photo by Phillip Spears/Getty Images

Finally, some good news for the Austin area’s housing market: It’s calming down.

In August, home sales declined nearly 5 percent compared with the same time last year, according to the Austin Board of Realtors. And home prices are no longer rising at a significant month-to-month clip.

“The region’s housing market is calming compared to the hectic pace experienced at the beginning of the year,” Susan Horton, president of ABoR, says in a news release. “While it wouldn’t be appropriate to say market conditions are normalizing — inventory is still at an all-time low and homes are still selling as soon as they hit the market — August’s housing activity is closer to what we would typically experience in the fall.”

Home sales in the Austin metro area decreased 4.6 percent this August versus last August, according to ABoR. And while the region’s median home price soared 34.7 percent to $470,000 — a record for the month of August — month-to-month price gains are tapering off. In fact, the median price in the metro area dipped from $480,000 in July to $470,000 in August.

Here’s a rundown of August activity in the metro area:

  • In the city of Austin, the median home price stood $540,000, up 27.1 percent from August 2020. By comparison, the median price in July was $574,975. Year over year, home sales went up by just 0.2 percent.
  • In Travis County, the median home price landed at $527,000, up 25.5 percent from August 2020. In July, the median price was $551,000. The number of home sales fell 3.7 percent compared with the same time a year ago.
  • The median home price in Williamson County jumped 46.6 percent compared with last August, winding up at $441,000. The median home price in July was $445,000. Home sales volume decreased 4.2 percent.
  • Hays County saw the median home price go up 30.3 percent compared with August 2020, ending up at $399,000. The median price in July was $392,576. The number of home sales fell 10.5 percent.
  • In Bastrop County, the median home price in August increased 19.7 percent to $334,000. In July, the median price was $345,500. The volume of home sales climbed 8.7 percent.
  • Among the metro area’s markets, Caldwell County witnessed the biggest increase in the median home price and the biggest decrease in home sales. Compared with a year earlier, the median home price in August jumped 50.5 percent to $321,250. The median price in July was $249,250. Meanwhile, the number of home sales tumbled 34.2 percent in August.