The #1 Central Texas Market Report

Elon Musk is not the only Silicon Valley heavyweight exiting the Bay Area. Earlier this month, the company that defined the Silicon Valley we know today, Hewlett Packard Enterprise (HPE), announced that it too will move its headquarters to Austin in 2021 after nearly a century in Palo Alto.

According to data from the Austin Chamber of Commerce, by this past November, 39 companies in tech and other industries had found new homes in the Austin in 2020 so far. Besides just the tech conglomerates mentioned above, the list also includes venture capital firms, startups, and consumer-centric brands, such as e-cigarette maker Juul Labs. 8VC,, Zynga, Zen Business, Iron Ox, RV Share, VORAGO Technologies, and more. List of relocations and Expansions Log


Despite the economic challenges the pandemic has presented, Austin’s housing market activity is stronger than it’s ever been. MSA home sales jumped 23.8% year over year to 3,397 sales, No sign of a typical seasonal slowdown heading into the new year. Housing demand has only increased over the past several months, on the ground our main challenge as Realtors is navigating the critically low levels of inventory. This near-zero level of housing inventory throughout Central Texas is staggering, and is putting enormous pressure on home prices, and the rental market!

With a steady influx of job creation in the pipeline with all of these big companies relocating here, the housing market will continue to post strong numbers well into 2021, But, because the market is not slowing down, we'll continue to see demand outpace the inventory. The bottom Line is this growth is not sustainable, variable that will inevitably hold the market back is the lack of inventory.

NOTE: November Closed Sales are the results of contracts written mostly in October.
Travis County
Sales increased 25.2%
Median price rose 19.7% YOY to $425,000.
New listings increased 8.2% to 1,388 listings
Active listings decreased 47.2% to 1,523
Pending sales up 22.4% to 1,642 pending sales.
Housing inventory fell 0.9 months to 0.9 months of inventory. 
Hays County
Sales increased 30.4%
Median price rose 18.5% YOY to $303,525.
New listings increased 6% to 338 listings
Active listings fell by 50% to 439
Pending sales soared 54.6% 422 pending sales.
Housing inventory fell 1.6 months to 1.1 months of inventory.
Williamson County
Sales increased 19.8%
Median price rose 18% YOY to $326,725.
New listings increased 2.2% to 903 listings
Active listings tumbled be 71.8% to 604
Pending sales up 12.2% to 1,048 pending sales.
Housing inventory fell by 1.6 months to 0.5 months of inventory.
The Question Leaders should be asking now is...
When those who can't find a property within the city, and can't simply expand their search to find a home either, what effect does that have??

When the entire Central Texas region has no inventory, that's the bigger problem that needs to be solved. The question our leaders and lawmakers really need to really think on... is how such a widespread lack of housing will impact Austin’s suitability as a destination for businesses and economic growth.

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While 2020 has faced its fair share of ups and downs, there’s one big blaring question: will the housing market in 2021 follow the same trajectory, or are we facing a possible downturn? KCM Takes a deep dive into what leading real estate experts are projecting for 2021.

Interest rates are projected to stay low
One of the biggest drivers for this year’s booming real estate market were record-low mortgage rates. Because of this, affordability reached one of the highest levels it has in the last 30 years. Naturally, eager buyers followed. The good news is, experts are predicting that mortgage rates will remain low for the foreseeable future.
This trend is expected to stick around in 2021, but a possible slight increase in mortgage rates and appreciating home values could lead to a slight decrease in affordability for the ladder half of 2021.
Home sales are projected to grow by 7% Nationally
Experts are predicting a 7% increase in home sales compared to last year. This signifies one big piece of news: we will likely see an increase in inventory for 2021. Whether it’s homeowners who waited out the pandemic or brand spanking new homes from builders, more inventory will be a welcome change

Home prices are projected to appreciate by 4%
It’s a simple case of supply and demand. When high buyer demand meets low inventory, homes prices will appreciate. This year, however, we saw it at a faster-than-usual pace nationwide. For 2021, experts project that we will continue to see appreciation, just at a slightly slower pace that’s reflective of what they predict to be a more balanced market.
While some may be worried that the rapid acceleration of home values means we’re heading for another bubble, remember that context is everything.
With the end of the pandemic in sight, experts expect inventory levels to rise and home prices to appreciate at a more steady pace.
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