AUSTIN (KXAN) – Is one of America’s hottest housing markets finally cooling off? Maybe, according to Austin’s board of directors.
Compared with August 2020, home sales in the Austin-Round Rock real estate market in August 2021 were down 4.6%. However, median home prices were still at an all-time high for August at $ 470,000 and sales volume rose nearly 19% to over $ 2.2 billion.
To say that the market has calmed down from its meteoric pace earlier in the year is fair, but it is not “normalization,” said board chair Susan Horton.
“The region’s housing market is calming from the breakneck pace experienced at the start of the year,” she said. “While it is not appropriate to say that market conditions are normalizing – inventories are still at an all time low and homes are still selling as soon as they hit the market – real estate activity is still selling. August is closer to what we would typically experience in the fall. “
The monthly housing stock is back to one month, and it’s the highest since October 2020, according to the board’s August report.
Based on demand, the Austin-Round Rock market is “exactly where it should be,” said economist Mark Sprague.
“The Austin market is strong, and selling activity and pricing has been driven by real demand,” he said. “A combination of events including increased job creation in the marketplace, low interest rates, shifting priorities for potential buyers and, in many cases, increased personal savings from stay-at-home orders. home during COVID, explains why the Austin MSA is a top market in the country. When there is such demand, it is difficult for an entire market to be considered overvalued. “
Sprague also said the market is a national leader in single-family home permit applications for new construction.
“The national average for permit applications is down 31% from peak applications during 2002-2008, but the Austin area is up 28%,” he said. The bottom line is that the Austin market can be tough, there are still plenty of opportunities to find the right home and build equity.
For full statistics on the housing market, see the Austin Board of Relators website.
Condominium and townhouse sales on the rise in the past year
Sales of condominiums and townhouses in the Austin-Round Rock market have both increased by over 40% in the past year.
From July 2020 to June 2021, condo sales climbed nearly 44.8% to 4,394. Townhouse sales increased 40.3% to reach 540. The local market also outperformed the market Texas real estate in both categories.
Across Texas, the median price of condos and townhouses has both increased. The median selling price of condominiums in June 2021 was $ 240,000, an increase of 24% from June 2020. The median selling price of townhouses was $ 285,000 in June 2021, an increase of 18. 7%.
“Condos and townhouses are available at multiple prices and can be a great option for many entry-level homebuyers, young professionals, or retirees looking for a foreclosure lifestyle. leave, ”said Marvin Jolly, president of Texas Realtors.