AUSTIN (KXAN) — It was a record-setting 2021 for the Austin-Round Rock housing market.
The Austin Board of Realtors said in a year-end report that more homes were sold in the market than ever before at 41,316. That was a 2.5% year-over-year increase, and the median home price rose nearly 31% from 2020 to $450,000.
There was over $23 billion in sales volume, representing a nearly 33% increase, and more homes also hit the market in 2021 with new listings up almost 6% to 46,449.
Cord Shifflet, the 2022 board president, said Austin was “put on the world’s stage” in 2021.
“In 2021, we lived through the most exciting, complicated, fast-paced and record-setting housing market in Austin’s history,” he said. “With all the new jobs across the region from exciting companies like Tesla and Samsung, Austin was put on the world’s stage and captured the hearts and attention of so many. We are lucky to call Austin our home when it has so much to offer from a great quality of life to a wonderful destination for innovation and opportunity.”
Seemingly as soon as homes hit the market, they were gone. On average, homes spent 20 days on the market in 2021, nearly 56% less than they did in 2020, the report said.
What’s a little peculiar, the report said, is that even with the growth of listings, the average number of active listings dropped 48% to 2,348 in 2021.
Mark Sprague, state director of information capital at Independence Title, said that could be a sign of what to expect moving forward.
“In 2021, the record number of homes sold were demand-driven transactions and that demand was influenced greatly by companies continuing to target the region for job creation and expansion,” he said. “Even though more homes are being built, listed and sold than ever before, our region is still nowhere close to having a comfortable amount of supply to meet the demand, which is why home prices continue to rise steadily.”
Sprague also said supply chain disruptions that delay home building and general lack of inventory could lead to a “5-7% decline in closed sales,” but the rising home values would help keep the market’s economic impact steady.
“In short, 2022 will see a robust market for home sales and property values, but the region must do more to address inventory,” Sprague said.
Shiflet said housing, and how to make it affordable for everyone, should take center stage with politicians in an election year.
“As we move closer to the election, ABoR encourages candidates for our local offices to put housing policies designed around streamlining the development process at the top of their list,” Shiflet said. “It’s important that everyone who wants to own a home be able to find, afford and enjoy something regardless of their budget.”