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Single-family home sales in the Austin-Round Rock Metropolitan Statistical Area (MSA) experienced strong and steady growth in the first half of this year but declined in June 2018, according to the June & Midyear 2018 Central Texas Housing Market Report released today by the Austin Board of REALTORS®. In the first half of the year, area home prices continued to increase and housing inventory levels slowly declined amidst strong housing demand.
“Despite a decline in home sales volume across Central Texas in June, 2018 is on track to be another record-setting year for the region’s housing market,” Steve Crorey, president of the ABOR said. “Consecutive years of record-breaking sales activity have set the bar incredibly high, and it’s important to remember that we’re comparing June 2018 figures to that strong activity. The Central Texas housing market remains strong and continues to move at a demanding pace.”
In June 2018, single-family home sales activity declined 2.7% year-over-year to 3,299 sales. During the same period, the median price for a single-family home rose 4.9% year-over-year to $326,250. Monthly housing inventory decreased 0.1 months year-over-year to 2.9 months, well below the Real Estate Center of Texas A&M University’s benchmark of 6.0 months as a balanced housing market. While home sales decreased across the MSA in June, this is not indicative of a declining housing market, suggested Jim Gaines, chief economist at the Real Estate Center at Texas A&M University.
“The Central Texas housing market is among the top three in the country. The region’s population growth, particularly along the I-35 corridor, is fueled by diversified economic opportunities that bring jobs, new businesses, and resources across multiple industries,” he said. “Strong population growth and home sales activity are expected to continue in the Central Texas region for the rest of the year and into 2019.”
In the city of Austin, the availability of housing compared with demand — as measured through inventory — continues to be historically low while median home prices have reached historic heights.
The median price for single-family homes in the city of Austin increased 3.7% year-over-year to $389,000 in May, an all-time high for the city. While home sales rose 5.9% to 1,037 sales, housing inventory decreased from 2.1 months last year to 2.0 months during the same time frame. There were fewer active listings as well, as the amount of homes available on the market decreased 6.8% to 1,533 listings.
In the Austin-Round Rock MSA, home sales rose 4.2% year-over-year to 3,210 sales in May 2018 and housing inventory decreased from 2.8 months last May to 2.7 months this year. During the same time frame, the median home price increased 4.8% year-over-year to $325,000.
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.
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