December 2021 Market Update for Austin, TX MSA

[Bryan Noth]

December 2021 Market Update for Austin, TX MSA

December 2021 statistics have been released for the Central Texas Housing market. There was an increase from the preceding month and a 30% increase from the preceding year for the MSA.

The City of Austin saw a change in median home price from $540,000 to $555,000, a month to month increase of $15,000 and a 19% increase from the previous year. The Austin-Round Rock Metropolitan Statistical Area saw a change in median home price from $470,000 to $476,700, for a month to month increase of $6,700 and a 30% increase from the previous year.

The following infographics and data is courtesy of the Austin Board of Realtors:

Housing inventory decreased from 0.8 months to 0.6 months for the entire MSA. The City of Austin saw a slightly stronger drop down to 0.5 months. That equates to only 15 days of housing inventory. The five county region saw a 10% decrease in new listings compared to December of the preceding year and a 26% decrease from the preceding month.

This is exactly what housing inventory was a year ago for the MSA. However, the amount of new listings coming to the market is less. This data comes just after the jobs report for the Austin MSA was released which saw a record breaking announcement of jobs created, jobs pledged, and not to mention a record number of business relocations. Both Apple and Tesla had indicated massive hiring plans for the beginning of 2022 and Tesla’s Gigafactory is slated to begin production any day now. Samsung, Meta, and Amazon have also made statements indicating additional hiring sprees for the area. Quite recently Meta secured largest commercial office space lease in Austin’s history in the CBD and Amazon grabbed another entire tower in the Domain for office space.

Growth has never been stronger for Austin, and demand has never been greater. It is worth noting the market is already playing out from critically low levels. From a statistical perspective, housing inventory would have to make a 1100% overall increase to become a balanced market. That is a correction of colossal proportions. The shear enormity of the disparity there essentially dictates current market trends enduring.

Disclaimer: The information provided here is for educational purposes only, past performance is never a guarantee of future performance.