AUSTIN, TX—Homes sales in the Austin area have rebounded in June after suffering two months of double-digit declines amid the COVID-19 pandemic. Austin Board of Realtors reports June home sales increased 9% year-over-year to 3,969 while sales dollar volume also increased 13% to $1.67 billion, and pending sales increased by 34% to 4,737.
Though home sales have come back strong, the market is still seeing sellers hesitant to list their home during our current shelter in place orders, ultimately creating a competitive buyers market. Active listings are going fast with an average of 44 days on the market, down four days from last year, and home inventory is low of 1.8 months.
For buyers, ABoR reports the average 30-year mortgage is at 2.98%, down from 3.03%. It’s the first time the rate has fallen below 3% in 50 years. Financially this is good news but active buyers should be prepared to compete for their dream home in this tight market.
Experts are optimistic that the effect of COVID-19 will not cause much damage to the overall Austin Real estate market. Still, the shortage of inventory could potentially be problematic for the current times. “Strong home sales in June are good news for the real estate market across the region,” Romeo Manzanilla, 2020 ABoR president, said. “The increased sales last month will help limit the pandemic’s impact on the first half of the year overall. We will have to remain cautious as Texas experiences a spike in COVID-19 cases, and we are seeing shrinking housing inventory.”
James Gaines, Chief Economist for the Real Estate Center at Texas A&M University, said, “Shallow inventory is one factor that affects overall sales dollar volume while simultaneously creating a very competitive and tight market.” He states, “Even if we end up with a 3% to 4% decline in sales in 2020, that would still be a strong year for the region.”
Austin’s surrounding area suburbs are seeing the most significant increase in home sales. Williamson, Hays, and Caldwell counties saw double-digit percentage increases. Year-over-year Williamson County went up 16.1%; Hays County went up 38.6%; Bastrop County went up 7.4%; Caldwell County went up 40.9%; Travis County went down 0.8%.
With so many unknowns going into the months ahead, it’s refreshing to see a tremendous increase in June sales compared to 2019. Although home sales declined throughout the Austin-MSA during the past few months of 2020, the Austin housing market is still on track for a strong year!
Single-Family Homes, Condos, and Townhomes
June 2019 vs June 2020
All Luxury Home Sales Over $1,000,000
June 2019 vs June 2020
These statistics are for single-family homes, condos, and townhomes across the Austin-Round Rock Metropolitan Statistical Area (MSA).