Slow Sales, High Prices Continue as Influx of New Austin Residents Enter the Housing Market | The Salesmark

Slow Sales, High Prices Continue as Influx of New Austin Residents Enter the Housing Market

Slow Sales, High Prices Continue as Influx of New Austin Residents Enter the Housing Market

Within Austin’s city limits the numbers were even higher, with the median sale price was $540,000 last month, according to the board.  That is also a November record and is a 24.2% jump from the same month last year.

“We are selling a record or near-record number of homes every month because of the popularity of our region which is driven by economic opportunities and the quality of life we are so accustomed to,” Susan Horton, the board’s president, said in a written statement. “While inventory is still low, we can attribute this to the high demand for our market and the churn of new homes being listed and selling in just over three weeks on average.”

While the prices continued to rise, the number of home sales has slowed compared to 2020. Sales declined 4.9% across the region, and were down 4.3% within Austin’s city limits, according to the board’s data.

“The decline is to be expected, as the pandemic demand in 2020 drove unseasonal demand,” said real estate broker Eric Bramlett with Bramlett Residential.

In November of 2020, with the coronavirus pandemic in full swing, sales in both the Central Texas region and within Austin’s city limits hit records for a November, with no sign of a typical season slowdown heading into 2021, the board said at that time.

Despite the recent slowing of the sales pace, the Austin Board of Realtors says the market remains on track for another record-breaking year, as year-to-date sales are still up 3.1% over the same period in 2020.

Despite the rise in home prices, Horton said buyers are still able to find homes below the median price point. Last month, 53% of the homes sold in the region went for between $250,000 and $500,000, Horton said, describing that as “today’s typical price range for first-time and first-time move-up homebuyers.”

“This data indicates that despite a fast-paced market and record-low inventory, opportunity still exists to find the right home,” Horton said.

And any potential buyers who have been waiting around hoping for prices to go down are likely to be disappointed, local real estate experts say.

Prices are only headed higher, due to the market’s ongoing imbalance between supply and demand, Austin real estate broker Brad Pauly said.

“For those buyers sitting on the sidelines waiting for prices to drop, I have bad news —  I don’t expect pricing to slow down anytime soon,” Pauly said. “In fact, I wouldn’t be shocked to see pricing jump again early next year.  The demand for property continues to heavily outweigh the supply and that is due to the huge influx of new Austin residents.”

Not only is the home sales market “still firing on all cylinders,” Pauly said, but leasing rates for rental houses also have increased significantly over the past six months.

“With the drastic increase in pricing for sales and leasing, the boundaries of the Austin market are pushed farther out in every direction,” Pauly said.  

Wesley Steck, a broker associate with JB Goodwin Realtors, said the market might have found “a new floor,” and that the growth in home sales prices might return to a more typical level.

“There’s a sense the (pricing) wave has crested a bit for the first time all year,” Steck said. “We might get back to healthy appreciation, compared to what we saw this past year, which was bonkers.”

“No one has a crystal ball,” Steck said. But with the region’s job growth and continued expansion of companies like Tesla and Samsung,” there’s not awhole lot of reason to bet against Austin continuing to grow.”

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