Austin, TX – The Austin housing market saw the fourth month of record-breaking numbers. While the market continues to hold firm, high demand for housing is outpacing the available inventory. As companies flock to the Austin area, local professionals warn that rapid growth could soon cause trouble in the market.
Austin Board of Realtors reported active listings average 33 days on the market, down 29 days from 2019. The median home price increased 19% year-over-year to $365,000, and active listings on the market are down 55% to 3,501
“Despite the economic roadblocks and challenges the global pandemic has presented, Austin’s housing market activity is stronger than it’s been in several years,” Romeo Manzanilla, 2020 ABoR president and Realty Austin Broker in Charge, said. “Housing demand has only increased over the past several months and Austin REALTORS® are working hard to ensure clients find a home that works for them. Our main challenge in this market is navigating the critically low levels of inventory. This near-zero level of housing inventory throughout the region is staggering, and it will put enormous pressure on home prices and the rental market.”
As people and families evaluate their housing needs amid the pandemic, Austin continues to lure buyers and investors into the area. This comes as no surprise as new construction and infrastructure planning is booming as business relocations announced this year is expected to create nearly 10,000 jobs, according to the Austin Chamber of Commerce and Wall Street Journal. Companies such as Tesla, Oracle, and Hewlett Packard Enterprise have all recently decided to relocate and plant their roots in Austin, driven by lower prices and taxes.
Laura Huffman, President and CEO of the Austin Chamber, elaborates on the draw these companies have to Austin. “There are a lot of things about this community – It’s got a great local flavor, great music scene, it’s an outdoor city. That’s where people want to be. I think 2020 has taught us all that we have more choice when it comes to where we live.”
Single-Family Homes, Condos, and Townhomes
November 2019 vs November 2020
All Luxury Home Sales Over $1,000,000
November 2019 vs November 2020
Warnings spark as a sudden increase in jobs coming to the city could be trouble for the market with inventory already nearing zero.
“With a steady influx of job creation in the pipeline, the housing market will continue to post strong numbers well into 2021,” Mark Sprague, state director of information capital at Independence Title, said. “But, because Austin’s housing market is not slowing down, we will continue to see demand outpace the inventory available. This growth is not sustainable. The one variable that will hold the market back is the lack of inventory.”
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