Austin-Round Rock MSA housing market sets records in 2021
Home sales accounted for more than $23 billion in economic activity in 2021
CENTRAL TEXAS HOUSING REPORT
AUSTIN, Texas – According to the December 2021 and Year-End Central Texas Housing Market Report released by the Austin Board of REALTORS® (ABoR), more homes were sold in the Austin-Round Rock MSA in 2021 than ever before, with residential home sales rising 2.5% year over year to 41,316 homes sold last year.
“In 2021, we lived through the most exciting, complicated, fast-paced and record-setting housing market in Austin’s history,” Cord Shiflet, 2022 ABoR president, said. “I’m extremely proud of every REALTOR® who worked so hard on behalf of their clients, helping them navigate such an unprecedented market — not an easy thing to accomplish. With all the new jobs across the region from exciting companies like Tesla and Samsung, Austin was put on the world’s stage and captured the hearts and attention of so many. We are lucky to call Austin our home when it has so much to offer from a great quality of life to a wonderful destination for innovation and opportunity.”
In addition to an annual record for closed sales, the median price for a home across the MSA set a record in 2021, rising 30.8% over 2020 to $450,000. Sales dollar volume jumped 32.6% to yield a $23,374,102,226 impact on the Austin-area economy in 2021. More homes hit the market in 2021 than ever before, with new listings increasing 5.9% to 46,449 homes and pending listings rising 1.1% to 42,592 homes.
Despite a healthy growth in listing activity last year, the average number of active listings on the market dropped 48.2% to 2,348 homes in 2021. Homes spent an average of 20 days on the market, 25 days fewer or 55.6% less than in 2020, and the five-county MSA ended the year with 0.6 months of housing inventory, unchanged from December 2020.
“As we look back on the record-setting year, the numbers show that while the number of homes on the market at any given time is much smaller, there are still more homes being built and sold across our area than ever before,” Shiflet said. “There are still great opportunities to find your next home. Folks interested in buying should consider looking at making a move ahead of presumed increases in interest rates and home prices this year. Our REALTORs® have a sworn obligation to help buyers find the right home for their budget and can guide them through every step of the home buying process. Markets like this one are where you need a REALTOR® more than ever and we’re here to help.”
Mark Sprague, state director of information capital at Independence Title, reinforced that housing records were set due to high demand combined with limited supply, and provided a glimpse into what to expect in the coming year.
“In 2021, the record number of homes sold were demand-driven transactions and that demand was influenced greatly by companies continuing to target the region for job creation and expansion. Even though more homes are being built, listed and sold than ever before, our region is still nowhere close to having a comfortable amount of supply to meet the demand, which is why home prices continue to rise steadily.”
When looking ahead to 2022, Sprague identified a lack of inventory and supply chain disruptions as variables that could impact Austin’s housing market.
“Lack of inventory and global supply chain issues may lead to a 5-7% decline in closed sales across the region in 2022, but rising home values will ensure the housing market’s economic impact remains steady. In short, 2022 will see a robust market for home sales and property values, but the region must do more to address inventory.”
With 2022 being an election year, Shiflet emphasized the importance of local leaders prioritizing housing.
“Affordable homes at all price points continue to be a challenge in our market. This is something we’re all working to address. As we move closer to the election, ABoR encourages candidates for our local offices to put housing policies designed around streamlining the development process at the top of their list. It’s important that everyone who wants to own a home be able to find, afford and enjoy something regardless of their budget.”
In December 2021, closed listings across the MSA declined 4.6% to 3,513 year-over-year as sales dollar volume increased 19.1% to $2,126,920,422. Median price set a record for the month of December across the MSA, rising 30.6% to $476,700. New listings declined 10.6% to 2,170, active listings rose 5.0% to 2,042, and pending sales dropped 11.3% in December to 2,654. Last month, homes spent an average of 25 days on the market, 12 fewer compared to December 2020.
City of Austin – December 2021
In 2021, residential home sales in the City of Austin increased 4.6% to 13,351 sales, an annual record, while sales dollar volume jumped 30.5% to $8,820,863,800. The median sales price for residential homes rose 27.7% year over year to $536,331 this past year, also an annual record. New listings slightly increased 1.4% to 14,937 listings while active listings dropped 41% to 782 listings, and pending sales increased 4.7% to 13,595 pending sales.
In December 2021, the median sales price in the city of Austin rose 19.4% to $555,000, an all-time monthly record. Residential sales decreased 8.2% to 1,110 sales, as sales dollar volume increased 7.5% to $773,517,832. During the same period, new listings dropped 15.1% to 641 listings, while active listings also decreased 26.5% to 548 listings, and pending sales fell 9.3% to 818 pending sales. Monthly housing inventory decreased 0.2 months year over year to 0.5 months of inventory.
Travis County – December 2021
During 2021, residential home sales increased 2.3% to 20,586 sales, while sales dollar volume rose 28.8% to $13,767,295,840. The median price for residential homes increased 28.4% year over year to $520,000. This past year, new listings also increased 0.9% to 22,988 listings, active listings dropped 44.2% to 1,236 listings and pending sales decreased 0.1% to 20,859 pending sales.
In December, residential home sales decreased 8% to 1,750 as sales dollar volume in Travis County spiked 9.2% to $1,239,694,707. Additionally, the median price rose 25.4% year over year to $545,000. During the same period, new listings declined 19.1% to 988 listings, active listings also dropped 11.5% to 912 listings, and pending sales decreased 15.4% to 1,262 pending sales. Monthly housing inventory fell 0.1 months year over year to 0.5 months of inventory.
Williamson County – December 2021
In 2021 in Williamson County, home sales increased 2.0% to 13,871 sales, and sales dollar volume spiked 40.9% to $6,528,590,310. The median price for homes increased 38.8% to $425,680. New listings increased 12.2% to 15,479 and active listings fell 52.1% to 629 listings in 2021. However, pending sales increased 2.2% to 14,409 pending sales.
During the month of December, residential sales in Williamson County decreased 2.5% to 1,153 sales, and sales dollar volume jumped 33.8% to $580,123,013. The median price increased 38.5% to $450,000. In December, new listings decreased 3.1% to 764 listings, while active listings rose 34.2% to 542 listings. Pending sales dropped 4.3% to 899 pending sales. Housing inventory increased 0.1 months year over year to 0.5 months of inventory.
Hays County – December 2021
During 2021, Hays County home sales increased 0.7% to 4,913 sales, and sales dollar volume rose 30.2% to $2,385,186,102. The median price for homes increased 25.4% to $370,000. This past year, new listings increased 11.8% to 5,834 listings, while active listings tumbled 50.8% to 322 listings compared to 2020. Pending sales increased 0.9% to 5,333 pending sales.
December 2021 home sales in Hays County increased 1.9% to 435 sales, and sales dollar volume rose 39% to $230,266,685. The median price for homes increased 29.5% to $395,070. During the same period, new listings increased 11.6% to 307 listings, while active listings also rose 31.9% to 393 listings. However, pending sales decreased 6.8% to 358 pending sales. Housing inventory increased by 0.3 months to 1.0 months of inventory.
Bastrop County – December 2021
In 2021 in Bastrop County, home sales increased 15.4% to 1,567 sales, and sales dollar volume rose 44.3% to $573,373,325. The median price for homes increased 22.8% to $323,000. New listings increased 3.9% to 1,714 listings while active listings declined 55.6% to 120 listings. However, pending sales rose 5.5% to 1,589.
In December, Bastrop County home sales dropped 2.9% to 136 sales, and sales dollar volume soared 45.1% to $62,341,501. The median price for residential homes increased 42.6% to $385,000. During the same period, new listings dropped 23.1% to 90 listings, while active listings dropped 6.8% to 151 listings. Pending sales also fell 28% to 103 pending sales. Housing inventory decreased by 0.2 months to 1.2 months of inventory.
Caldwell County – December 2021
Last year in Caldwell County, the median price increased 26.5% year over year to $268,400. Residential home sales increased 8.6% to 379 sales, and sales dollar volume jumped 40.2% to $117,046,442. New listings slightly increased 8.2% to 434 listings and active listings decreased 50.7% to 38 listings. At the same time, pending sales jumped 8.9% to 402 pending sales in 2021.
In Caldwell County, December home sales increased 25.8% to 39 sales as sales dollar volume increased 64% to $12,676,055. The median home price increased 39% year over year to $294,850. During the same period, new listings decreased 16% to 21 listings, while active listings also dropped 12% to 44 listings. Pending sales dropped 11.1% to 32 pending sales. Housing inventory decreased 0.3 months to 1.4 months of inventory.