April Market Update For The City of Austin
AUSTIN, Texas – The booming Austin-area housing market continued to demonstrate strength in April, with soaring double-digit growth in both home sales volume and median price growth.
The Austin Board of REALTORS® April 2021 Central Texas Housing Report is the first market report to provide a direct comparison to the housing market during the COVID-19 pandemic.
“One year ago, shelter-in-place orders effectively ground real estate transactions to a halt, leaving uncertainty in the market,” Susan Horton, 2021 ABoR President, said. “Although striking at face value, last month’s housing market activity demonstrates not only a strong recovery since last spring, but significant growth beyond that recovery.”
Residential home sales in the Austin Round-Rock MSA hit a record for the month of April, increasing 37.2% year over year to 3,604 sales, while median sales price rose 41.6% year over year to an all-time-high of $460,000. As a result, sales dollar volume topped two billion in April, skyrocketing 95.5% year over year to $2,065,570,878. Homes spent an average of 17 days on market, or 28 fewer days than in April 2020.
John Schutze, regional director and senior home loan officer at Texas Loan Experts, stated that purchasing a home in the Austin area today requires more of an upfront investment than ever before.
“Homebuyers are having to get creative as the Austin housing market continues to be competitive. Potential buyers must be prepared to have a source of extra funds to make up for potential appraisal shortages but also need to understand that cash isn’t always king when it comes to catching a seller’s eye. As interest rates look to hold steady for the foreseeable future, buyers need to be prepared for the long haul and need to work with a REALTOR® who can help explain the need to be bold and also help you put together the most attractive offer depending on the home and situation.”
In April, active listings fell 69.5% year over year to 1,901 listings. Consistent with the first months of 2021, housing inventory fell 1.5 months from April 2020 to 0.5 months of inventory. During the same time frame, pending sales jumped 50.4% to 3,920 pending sales and new listings increased 32.6% to 4,654 new listings.
“Austin-area housing inventory was slightly higher in April than in March, and the pace of home price appreciation month to month is slowing, indicating that the rush on the housing market at the beginning of the year could be easing,” Horton said. “While the home buying process continues to be complex and it’s common to submit several offers before one is accepted, there is hope and optimism for the months ahead.”
In the City of Austin, low levels of inventory drove the median home price up 31.7% year over year to $550,562—an all-time high for any month on record. Home sales increased 51.4% to 1,167 sales, an all-time high for the month of April, as sales dollar volume soared 100.8% to $782,329,568. During the same period, new listings increased 33.3% to 1,545 listings, active listings decreased 57.2% to 683 listings, and pending sales jumped 64.5% to 1,273 pending sales. Monthly housing inventory decreased 1.0 months year over year to 0.6 months of inventory.