Home prices in Bastrop County southeast of Austin have soared 61% over the 12-month period ending February, while Williamson County home prices rose 33%, Caldwell County prices rose 57%, and Hays County prices rose 43%, according to a report from the Austin Board of Realtors.
Homes in Bastrop County cost $443,835 on average, compared to $565,000 within Austin.
The latest data indicates how a shortage of housing within Austin is pushing buyers farther into the suburbs and rural areas, driving up prices and lengthening commutes in areas that used to be far more affordable.
Austin currently has 0.1 months of housing inventory on the market, a level that means there is virtually no supply except in highly competitive bidding wars. For the first time, the average home price for the five-county metro area reached $500,000.
“February was a very active month for our housing market as sales price records continue to be broken,” said Cord Shiflet, 2022 ABoR president. “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.”
There are some signs of a slowdown as supply dries up and buyers are pushed out of the market. Active listings decreased 4.1%. However, the rising prices meant that total sales dollar volume still increased 34% year over year.
Mark Sprague, state director of information capital at Independence Title, said that spiking inflation could further slow the market. “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.”
“Material and labor costs are on pace to rise from 4% to 5% monthly through 2023 and potentially further.”
