ROUND ROCK, Texas — 2022 is shaping up to be a big year for the Austin-Round Rock housing market. According to a February report from the Austin Board of Realtors (ABoR), closed listings increased 11.3% year over year to 2,581 sales across the Austin Round Rock area.
The market also reached a new record median price of $499,995, a 27.9% year-over-year rise.
These housing prices are what led Austin native Bianca Bangor and her family to leave Central Texas.
"We just felt like it was not going to be possible at all to find a place that we could afford in Austin," said Bangor.
She is still heartbroken her family had to leave for Florida. She said it was a tough decision, but the current housing prices left her with no other options.
"My kids had friends, my kids had a life," said Bangor. "I just started getting very comfortable and happy with the friend groups that I was getting into. I felt like it was finally getting, you know, cemented in Austin."
Like Bangor, hundreds of people continue to look for a place to call home in Austin. ABoR 2022 president-elect Ashley Jackson said they continue to see a high demand of buyers with few houses in supply.
"There have definitely been supply chain issues throughout the area, and that has pushed back the new construction timeline," said Jackson. "Where it used to take maybe eight to 10 months to build a house, you could see more delays now up to 12 months."
Jackson predicts inventory levels will stay low.
"It's hard to get workers for homes," said Jackson. "Building supplies cost more."
“February was a very active month for our housing market as sales price records continue to be broken,” said 2022 ABoR president Cord Shiflet. “We’re hearing from economists that last month’s numbers are a potential harbinger of a big year ahead even as our market continues to deal with insufficient supply compared to demand, resulting in the steady cycle of home price increases.”
Austin home sales increased 2.5% to 834 sales, while median price rose 15% to $565,000, a record for the month of February. In Travis County, home sales also increased 3.9%, while median price increased to $541,050.
Across the market, active listings decreased while new listings increased. Pending sales also increased, indicating March home sales growth could be equally strong as February. Homes spent an average of 28 days on the market last month.
Mark Sprague, state director of information capital at Independence Title, said the Ukraine conflict may impact housing affordability nationally and locally.
“The uncertainty in eastern Europe has stalled rising interest rates and contributed to keeping mortgage rates domestically below 4%, which is historically low," Sprague said. "Ultimately, however, the already accelerated rate of inflation is expected to rise even further – hurting renters, buyers and builders who continue to grapple with fast-rising construction costs.”
He also mentioned the conflict will impact the construction supply chain, as Ukraine sits on several material reserves, such as iron ores.
But he said it’s better to be in Texas than anywhere else.
"Although the possibility that housing inventory will continue to fall is now even more likely, strong housing demand and Austin’s diverse economy will ensure the housing market’s economic impact remains steady," Sprague said.
"This places our region in a better place than most globally.”
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