The Austin Board of Realtors (ABoR) has released its Central Texas Housing Market Report. It provides an overview of the housing market data in the region for the Austin-Round Rock Metropolitan Statistical Area (MSA). This area includes Austin, and the counties of Bastrop, Caldwell, Hays, Travis, and Williamson. Kyle is in Hays county and part of the hot San Marcos-Buda-Kyle market.
The latest edition from December 2020 indicates Austin-Round Rock MSA has closed 2020 with a record-breaking $17 billion housing market. Housing demand has soared to an all-time high in Central Texas. In December, residential home sales rocketed more than 16 percent year-over-year.
Why Central Texas Real Estate Is Heating up
According to Susan Horton, 2021 ABoR president, it’s an unprecedented time for the housing market. It turns out the pandemic increased demand for all housing in the region that inventory is near-zero. “That said, if you are ready to buy a home, now is the time to take advantage of low interest rates that boost your buying power and plant roots in Central Texas,” Horton says.
What could be driving the demand for housing in Austin-Round Rock MSA? Former Chief Economist for the Texas Real Estate Research Center Dr. James Gaines believes the demand is a combination of economic growth and higher consumer buying power. It’s also driven by population growth, employment gains, lifestyle changes, and low-interest rates.
“The pandemic fostered an environment where many families increased personal savings helping some transition from renting to ownership while others needed to ‘move up’ for more space while working from home,” Gaines says.
What Hays County Data Reveals
At close to 24 percent, the San Marcos-Buda-Kyle market is showing a stronger year-over-year growth than the average for all of Austin-Round Rock MSA. Why is it hot? Many new businesses are moving into new commercial developments that have sprung up in Kyle. The city is more affordable than Austin and still within an easy drive. Those that are flocking south of Austin tend to be of a younger demographic seeking affordability without sacrificing lifestyle and activities nearby. Numerous new eateries, local shopping and wineries have popped-up in the Kyle and Buda area—making it the next place to be.
The average day on the market for a home in Hays County is 40 days. The number of active listings has dropped but the number of new listings has gone up a little bit. If you’re shopping for a home in Kyle, Texas, be sure to visit the community’s website often for new listings.