The Austin-Round Rock MSA experienced a decline in residential home sales, while a slight increase in housing inventory coincided with a new all-time record for median sales price, according to the Austin Board of REALTORS® March 2022 Central Texas Housing Report.
“Rising home prices along with nationwide inflation and rising interest rates can seed caution in the market, so it’s important to remember that we are still experiencing a very active housing market driven by true demand, not investor speculation,” Cord Shiflet, 2022 ABoR president, said. “More homes are being listed and sold in Austin than ever before, and people are buying those homes because they need to live in them. The Austin area has a dire need for more housing stock across all housing types and price points, so last month’s increase in housing inventory and the number of homes on the market was a welcome sign.”
In March, residential home sales declined 5.9% year over year to 3,302 closed sales as the median price rose 22.6% to a new all-time record of $521,100. Sales dollar volume grew by 10.3% to $2,130,213,961 as new listings dipped 1.2% to 4,150. Active listings jumped 46.1% to 1,731 listings, causing housing inventory to increase 0.2 months to 0.5 months of inventory. Pending sales fell 11.1% to 3,597 listings and listings spent an average of 21 days on the market, six fewer days than March 2021.
Lila Valencia, City of Austin demographer, shared insights on Austin’s population growth and its impact on the housing market.
“According to the Census Bureau’s 2021 population estimates, Austin is experiencing a net growth of 146 people per day. This type of growth places immediate and significant demand on infrastructure, particularly housing. When a person or family moves into Austin, finding a place to live is at the top of their agenda. The latest Austin Board of REALTORS® data shows strong housing market growth in Bastrop and Caldwell Counties, a sign that people are having to look farther out from the central city, which has implications not just for the local housing markets in these areas but also for transit and transportation and access to other amenities and services.” Shiflet added that rising mortgage rates across the country are a further complication in an already complex housing market, underscoring the importance of working with a REALTOR® who can help homebuyers and renters fully understand their options.
“Higher interest rates do not automatically equate lower home prices, especially in a high-demand market like ours. For individuals who are borderline on being able to afford that monthly payment, increased mortgage rates can make it that much harder. An experienced REALTOR® can walk you through the home purchase process, connect you with available financing options as well as down payment assistance programs, and help you determine the ongoing costs for owning a particular property.”
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