Market Update During Covid
The Greater Austin area continued to feel the stark effects of COVID19, as housing inventory dropped to critically low levels, according to the Austin Board of REALTORS® (ABoR) latest Central Texas Housing Market Report.
Compared to May 2019, residential sales in the five-county area decreased 29.2% while sales dollar volume dropped 30.8%. At the same time, the median sales price increased 0.7% to $329,893 and homes spent three fewer days on the market—an average of 47 days.
“We’re seeing home sales drop because we simply don’t have enough inventory on the market,” Romeo Manzanilla, 2020 ABoR president, said. “There’s a lot of opportunity for sellers who are ready—new listings have increased visibility and homes are spending less time on the market.”
If you compare Austin’s home sales to the majority of large cities in the U.S., you’ll find Austin’s market has remained strong,
In the area, an 18.8% decline in active listings pushed housing inventory down further to 2 months, 0.6 months lower than May 2019. During the same period, new listings declined 15.8% while pending sales jumped 14.2% .
“Pending sales growth is the first sign of recovery, so the strong gains in May pending home sales throughout the MSA is encouraging,” concluded Manzanilla. “With continued population growth and pent-up demand for housing, our region’s housing market will ultimately rebound.”