January 2021 Central Texas Housing Market Report
Homes sales jump 23.9% in January
Impact from winter storms likely to increase housing demand
AUSTIN, Texas - Austin-Round Rock MSA home sales jumped 23.9% to 2,523 sales in January, according to the latest Central Texas Housing Market Report by the Austin Board of REALTORS® (ABoR).
“The last week has shown us, once again, that our homes are more important than ever,” Susan Horton, 2021 ABoR president, said. “Austin REALTORS® are not just local market experts in buying or selling a home but we can also provide guidance and resources for home repairs if your current home has been impacted by the winter storms. If you are currently in process of buying or selling a home, talk to your REALTOR® about how recent events might impact your closing timeline and what the appropriate next steps should be – this can include insurance policy terms or additional inspections that may be required.”
Across the five-county MSA, home sales dollar volume skyrocketed 53.5% to $1,161,692,362 while pending sales increased 15.9% to 3,365 in January. Despite 2,878 new listings in January—an 11% decline from 2020—active listings dropped 73.9% to only 1,369 properties across the region. Housing inventory fell 1.3 months to a record-low 0.4 months of inventory as homes spent an average of 33 days on market, 33 fewer days than in 2020.
Vaike O’Grady, regional director with Zonda, said that high demand across all price classes, housing types and geographies means that low inventory and a lightning-fast market conditions are not going away soon.
“There is strength across every price point and demand for every product,” O’Grady said. “Despite developers building as quickly as they can throughout the region and more than 6,000 homesites projected to come online within the next six months, the overall number of lots in development is only just able to keep up with current demand. This means that homes will continue to sell as soon as they hit the market, and prices will continue to rise steadily in the months to come.”
Horton added that the recent winter storms are only likely to increase housing demand in Central Texas, emphasizing the importance of working with a REALTOR® to buy, sell, or rent a home.
“While it will be weeks before we know the full impact of the winter storms on our communities, the disruption in transactions and the high demand for repair services will further complicate an already complex housing market. It is of the upmost importance to have a REALTOR® on your side to help you understand all options available to you. That includes down payment resources and ways that you can bridge the gap between selling your home and buying your next one.”