September Austin Housing Market Report

There are several factors that have contributed to the Austin area housing market boom over the past two decades, but the Austin Chamber of Commerce connects the continued job growth and a flourishing economy as the main driver for the increased demand. According to the Austin Board of Realtors, home sales in the Austin area decreased 5.1% compared to September 2020 as the median sales price of $450,000 set a record for the month of September.

Monthly housing inventory dipped 0.1 months to 1.1 months of inventory and homes spent an average of 17 days on the market—down 22 days when compared to September 2020.

“Tesla moving its headquarters here has cemented Austin as a hub of the tech and innovation industry with the potential for limitless opportunities,” says President and CEO of the Austin Chamber of Commerce, Laura Huffman. “The intentional diversification of our region’s economy and significant job creation also brings challenges that we as local leaders must take head-on.”

Tesla Chief Executive, Elon Musk, announced in early October 2021 that the technology company is moving its Fremont, California headquarters to Austin, Texas. The New York Times reported that Musk’s reason for the move was based on California’s high housing prices and long commute times. The East Austin factory is minutes from downtown and close to the airport.

While this influx of job growth has its advantages, the housing market’s low inventory and high demand reflect the challenges the city faces as new technology and innovation companies continue to call Austin, Texas home.

“With the region’s continued growth, we must focus on creating more inventory to meet the increasingly high and sustained demand for housing,” says 2021 ABoR president, Susan Horton.  “We have to put housing first and use all the tools we have in the toolbox to address this issue.”

Luckily, the housing market is continuing its calming trend this month in comparison to the market extremes we experienced at the beginning of the year. Horton says that this state of calm is a positive step forward, but there is still a long way to go before we see a balanced market.

In order to be a balanced market, the demand from buyers is equal to the supply from sellers. In this ideal situation, homes are normally sold around the list price and there are enough homes for buyers to compare their options. 

Even though more homes are now hitting the market, our overall listing inventory remains low; therefore, home sales are down. This reduction in sales, brought on by continued demand, has pushed our median sales price up.

In Travis County, that created an increase of 22.9% year over year, to $510,000. Our current inventory is still hovering at about 1.1 months, where traditionally a balanced market is a 6-month supply of homes.

We have not had more than a 2 month supply of homes in Travis County since October 2018. We have been in a perpetual seller's market since that time, and there is no indication that will shift anytime soon.

Realty Austin Broker Associate, Brian Copland, told CBS Austin that he believes we will continue to stay in a seller’s market. He said that although bidding wars are becoming less common, sellers can still expect multiple offers to come their way.

If you’re a buyer, now is the time to take advantage of the slower pace this season brings. Check out our current listings to view homes in your desired neighborhood.

If you’re a seller, now is still the ideal time to put your home on the market. Use our estimator tool to see what your home is worth.

Whether you are buying or selling, you’ll need an experienced agent by your side to help you navigate this competitive market. Our team of top Austin REALTORS® average 10 years of experience and sells more homes than average.