Follow our AustinREIGroup Facebook page for the latest Austin Real Estate news and highlights.
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.”
Single-family home sales in the Austin-Round Rock MSA increased 2.2% year-over-year to 2,292 home sales in October 2017. During the same time frame, single-family home sales in the city of Austin declined 1.7% to 699 home sales. At the county level, home sales volume increased 1.4% year-over-year to 1,124 home sales in Travis County, increased 5.4% to 794 home sales in Williamson County, and increased 6.2% to 274 home sales in Hays County.
Housing inventory levels continued to edge upward across the five-county MSA in October, increasing 0.2 months to 2.8 months of inventory. In the city of Austin, single-family housing inventory increased 0.1 months to 2.3 months of inventory. Housing inventory levels across the region continue to be well within a seller’s market, compared to the Real Estate Center at Texas A&M University’s estimation of 6.0-6.5 months of inventory as a balanced housing market.
Home prices continued to rise at a steady pace in October 2017. The median price for single-family homes increased 4.3 percent to $286,742 across the Austin-Round Rock MSA and increased 9.1 percent to $360,000 in the city of Austin during October.
Single-family home sales declined in the city of Austin but increased across the Austin-Round Rock Metropolitan Statistical Area (MSA) for the second month in a row.
Single-family home sales in the city of Austin declined 3.3% to 653 home sales in November. During the same time frame, single-family home sales in the Austin-Round Rock MSA increased 3.7% year-over-year to 2,196 home sales. At the county level, single-family home sales volume jumped 10.2% in Williamson County to 778 home sales and Hays County jumped 14.3% to 280 home sales. Due to the decline in home sales volume within the city of Austin, single-family homes sales volume declined 1.3% year-over-year in Travis County to 1,032 home sales.
“Even with the market normalization trends we are seeing, home sales volume throughout the Austin-Round Rock MSA is still on-pace with 2016 year to date. If this month’s home sales volume exceeds that of December 2016, 2017 will most likely be another record-breaking year for the Austin-area housing market.”
Both pending sales and active listings figures throughout the Austin-Round Rock MSA indicate that single-family home sales growth could continue through the end of 2017. In November, active listings for the five-county MSA increased 13.7% to 6,391 listings and pending sales jumped 14.9% to 2,340 sales.
If you are ready to start your buying or selling process
give us a call at 512-436-0649 - We´re happy to answer all your questions.