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The Austin-area housing market’s declining inventory and robust sales trends are creating an increasingly competitive housing market across all price classes, according to the latest Central Texas Housing Market Report
Within the Austin-Round Rock MSA, new listings increased 5.6% to 4,139 listings; active listings decreased 2.8% to 6,154 listings; and pending sales rose 14.3% to 3,320 pending sales. The median price of single-family homes in the Austin-Round Rock MSA increased 3.8% year-over-year to $316,000 in April 2018. Housing inventory decreased 0.2 months year-over-year to 2.4 months of inventory during the same time frame.
In the Austin-Round Rock MSA, homes priced between $150,000 and $250,000 stayed on the market, on average, fewer than 35 days. In the city of Austin, single-family homes in this price range spent, on average, between 20 and 33 days on the market in April 2018, indicating a continued inventory shortage amidst strong demand for this price category. The Real Estate Center at Texas A&M University cites the affordable threshold for entry-level homebuyers as $200,000 or less.
“In the Austin-Round Rock MSA, price classes across the board are seeing an increase in demand with a decrease in inventory,” Steve Crorey, president of the ABOR said. “While new listings are up year-over-year, homes are selling faster than they can be listed on the market. This has led to a smaller number of active listings and an increasingly competitive market for homebuyers.”
The Austin housing market continues to show increased demand, with double-digit % increases in sales in March 2018 according to ABoR. The Austin-Round Rock Metropolitan Statistical Area (MSA) experienced a 10.5% increase in sales compared to the same time last year, the March 2018 Central Texas Housing Market Report found.
“Last month, 2,714 single-family homes were sold in the five-county Central Texas region, which is more sales than any March we’ve seen on record,” Steve Crorey, 2018 president of the Austin Board of REALTORS®, said. “This type of growth early in the year indicates a strong summer selling season ahead. Those who are interested in buying or selling a home this summer should seek out the services of a REALTOR®.”
In the Austin-Round Rock MSA, the median price of single-family homes increased 3.5 percent to $305,233. Housing inventory levels decreased 0.2 months from March 2017 to 2.2 months of inventory.
“Historically, it’s common for some homes to be on the market for 50 days or more, even in markets with strong housing demand,” Crorey, said. “Within the city of Austin and other local markets with limited inventory, homes are spending a fraction of time on the market—as little as two weeks in some areas. This is an indicator of just how competitive it’s become to purchase a home in and around Austin.”
The ABoR first market analysis of the year shows steady increases in single-family home sales despite limited inventory, signaling a strong housing market for 2018, according to the January 2018 Central Texas Housing Market data report.
In the Austin-Round Rock MSA, the median price of single-family homes increased by 3.6% year-over-year in January 2018 to $290,000. Home sales increased by 8.5% to 1,655 sales, citing continual demand. Housing inventory of single-family homes in the Austin-Round Rock MSA stayed at 1.9 months of inventory, the same as last January. These inventory levels remain well below the 6.0-6.5 months of inventory that the Real Estate Center at Texas A&M University projects for a balanced housing market.
“In 2018, Central Texas’ housing market will continue to see an increase in both sales and price, despite inventory levels remaining low,” Jim Gaines, chief economist, Real Estate Center at Texas A&M University, said. “The housing demand and lack of inventory is so great, that if supply does not increase, we could see a upwards of 5% growth in median home prices within the Austin-Round Rock MSA. Inventory will be a determining factor in the direction of this year’s market.”
In the city of Austin, the median price for single-family homes increased by 10.2% to $347,000 year-over-year in January 2018; home sales increased by 1.5% to 482 sales. Housing inventory of single-family homes in January 2018 decreased to 1.3 months of inventory, compared to 1.4 months of inventory the previous January.
February is typically a slow month for home sales, but the Central Texas housing market didn’t slow a bit last month, according to the latest report from ABoR. The February 2018 Central Texas Housing Market Report showed that while home sales volume across the Austin-Round Rock Metropolitan Statistical Area (MSA) grew in February, areas with the highest market demand and lowest inventory experienced double-digit percent price increases and annual declines in sales activity.
“Last month, economists predicted an upwards of 5% growth in median home prices within the Austin area, and we have far surpassed that,” Steve Crorey, 2018 president of the Austin Board of REALTORS®, said. “This is especially evident in local markets where housing demand is strongest, such as Austin and Cedar Park. Home price increases are sharpest in these markets, while dwindling housing inventory in the lower price classes could be discouraging people from buying.”
In the Austin-Round Rock MSA, home sales increased 5.7% year-over-year in February 2018 to 1,955 sales. The median price of single-family homes increased 3.6% to $299,900. Housing inventory remained flat at 2.0 months, the same as last February.
In the city of Austin, the median price for single-family homes increased 12.2% to $367,701 year-over-year in February. Single-family home sales decreased 6.7% from the same period last year to 599 sales. Inventory decreased from 1.4 months of inventory in February 2017 to 1.3 months of inventory this year.
The December 2017 Central Texas Housing Market Report is out from the Austin Board of REALTORS®. It was another record-breaking year for total homes sold, beating 2016 by 2.4%. Home prices increased 5.4% in 2017 in the Austin-Round Rock MSA. In the city of Austin, the median price for single-family homes hit an all-time high at $362,000 annually, and sales increased by 2.5% over the same period. Despite breaking records, the Austin market consistently displayed signs of a turn toward normalization and an eventual end to the currently extreme seller's market. The new ABoR president, Steve Crorey, said that,
“While the Austin area continues to break records, the pace at which annual home sales and prices are increasing in Central Texas is beginning to normalize, indicating a more stable market. Affordability in Austin and the surrounding areas remains a concern for potential buyers. It’s important to address this issue in the coming years through policies and development codes that allow for more diverse housing options so that everyone can participate in home ownership.”
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