AUSTIN, TX— Last month the Austin real estate market continued to feel the effects of COVID-19 as many would-be sellers postponed selling their home, causing the inventory of available homes for sale to fall by 18%. Most listings are experiencing record low days on market and multiple offers as a record number of buyers compete.
According to The Real Estate Market Tracker, by Mike DelPrete, through June 14, Austin continues to lead the nation in buyer activity. Compared to the same time last year, Austin’s pending sales are 41% greater than last year. Pending sales in other markets are also on the increase but less than Austin.
In May, housing inventory dropped to critically low levels of 2 months or less throughout the greater Austin MSA. As anticipated, home sales dropped 29% however pending sales increased 14%, showing signs of recovery for the market.
For sellers, new listings have increased visibility and homes are spending less time on the market.
“We’re seeing home sales drop because we simply don’t have enough inventory on the market,” Romeo Manzanilla, 2020 ABoR president, said. “We recognize there’s still an element of discomfort with listing one’s home during the pandemic and Austin REALTORS® are taking every precaution to ensure safe and efficient practices across the market. There’s a lot of opportunity for sellers who are ready—new listings have increased visibility and homes are spending less time on the market.”
In the Austin-Round Rock MSA, an 18% decline to 6,086 active listings pushed housing inventory down further to 2 months, 0.6 months lower than May 2019. New listings declined 15% to 4,151 while pending sales jumped 14% to 4,287.
“Pending sales growth is the first sign of recovery, so the strong gains in May pending home sales throughout the MSA is encouraging,” concluded Manzanilla.
Mark Sprague, state director of information capital at Independence Title, said, “If you compare Austin’s home sales to the majority of large cities in the U.S., you’ll find Austin’s market has remained strong. But, because sales numbers have a one-to-three-month lag time, it was no surprise May sales declined and we’ll likely see the same in June and July. The solution is increased housing stock. Until more homes are put on the market, we won’t see home sales recover anytime soon.”
Single-Family Homes, Condos, and Townhomes
May 2019 vs May 2020
All Luxury Home Sales Over $1,000,000
May 2019 vs May 2020
These statistics are for single-family homes, condos, and townhomes across the Austin-Round Rock Metropolitan Statistical Area (MSA). If you would like similar statistics for a specific area, property type or price range, please contact us and tell us how we can help. Use our new market snapshot tool for a comprehensive analysis of your home’s value in today’s market, or call us for an analysis of comparable homes sold.
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