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AUSTIN (KXAN) – Is one of the hottest housing markets in America finally cooling off? Maybe, says the Austin Board of Realtors.
Compared to August 2020, home sales in the Austin-Round Rock housing market declined 4.6% in August 2021. However, average home prices in August were still at a record high of $ 470,000, and sales volume rose nearly 19% to more than $ 2.2 billion.
Austin home sales are falling for the first time in over a year – still near record highs
To say the market is calming down from its sizzling pace earlier in the year is fair, but it’s not a “normalization,” said CEO Susan Horton.
“The housing market in the region has calmed down compared to the hectic pace at the beginning of the year,” she said. “While it wouldn’t be fair to say that market conditions are normalizing – inventory is still at an all-time low and houses are still selling as soon as they hit the market – August housing activity is closer to what we normally see in the US would see fall. “
The monthly housing stock has decreased to one month and that is the highest since October 2020, according to the August report of the board of directors.
Because of the demand, the Austin Round Rock Market is “right where it should be,” said economist Mark Sprague.
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“The Austin market is resilient and real demand has driven sales and pricing,” he said. “A combination of events including increased job creation in the marketplace, low interest rates, changing priorities for prospective buyers and, in many cases, increased personal savings after staying at home orders during COVID, is why the Austin MSA a top market in the country. With so much demand, it is difficult for an entire market to be considered overvalued. “
Sprague also said the market is a national leader in building permit applications for single-family homes.
“The national average of permit applications is down 31% from the peak applications in 2002-2008, but the Austin area is up 28%,” he said. The bottom line is that the Austin market can be challenging, there are still plenty of opportunities to find the right home and build equity. “
Complete statistics on the real estate market can be found on the Austin Board of Relators website.
Sales of condominiums and townhouses last year
Sales of condominiums and townhouses in the Austin-Round Rock market rose more than 40% over the past year.
From July 2020 to June 2021, condominium sales rose nearly 44.8% to 4,394. Townhome sales rose 40.3% to 540. The local market also outperformed the Texas housing market in both categories.
Across Texas, the average price for condos and townhouses was rising. The average condominium sales price was $ 240,000 in June 2021, up 24% from June 2020. The average townhouse sales price in June 2021 was $ 285,000, an 18.7% increase.
“Condos and townhouses come in a variety of price ranges and can be a great option for the many homebuyers, young professionals, or retirees looking for a locked and abandoned lifestyle,” said Marvin Jolly, chairman of Texas Realtors.
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