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Early demand for single-family homes in the fourth quarter led to a record-breaking month of home sales for Central Texas, according to ABOR. Single-family home sales in the Austin-Round Rock MSA were the highest on record for any October, generating more than $900 million in sales dollar volume—another record for October.
“Over the past several years, Austin's housing stock and home sales have become opposing forces that are widening our housing gap,” Steve Crorey, president of the Austin Board of REALTORS®, said. “We saw slight inventory increases across the market, particularly in the suburbs, but they’re not enough to offset ongoing demand.”
Austin-Round Rock MSA
In the five-county MSA, sales volume increased 4.3% year over year from 2,250 sales in October 2017 to 2,347 sales last month. Sales dollar volume increased 8.8% year over year to $901,408,403. High demand across the MSA and limited inventory pushed the median home price to $308,355.
New listings for the Austin-Round Rock metro area slightly increased 3.7% year over year to 2,871 listings in October. During the same period, active listings increased 8.2% to 7,434 listings and pending sales increased 2.8% to 2,444 pending sales. Monthly housing inventory increased by 0.1 months to 2.9 months of inventory.
"Market demand for new homes in the Austin area continues to be robust this fall, especially in price points below $300,000,” Vaike O’Grady, Austin regional director for MetroStudy, said. “Factors such as inclement weather have slowed development, and a lack of available lots has pushed the housing market farther out from Austin proper. However, the fundamentals in Austin have not changed. The demand for housing is so great that if the product is priced correctly and in a desirable location, it's going to sell."
Single-family home sales growth across the Austin-Round Rock Area was flat last month but did not impact strong year-to-date home sales numbers, according to data released by the ABOR.
“Austin-area housing market activity has bucked the trend of a cool-weather slowdown over the last several years, maintaining much of the momentum from the summer months through the end of the year,” Steve Crorey, 2018 president of ABOR said. “Home sales growth declined 5% last September, so it’s good to see that the area housing market held steady in September 2018. Austin continues to be one of the fastest-growing markets and most competitive housing markets in the country.”
In the five-counties, sales volume decreased 0.9% year over year from 2,390 sales in September 2017 to 2,368 sales last month. Year to date, home sales in the Austin-Round Rock area are up 3.6% from the first nine months of 2017.
Sales dollar volume increased 5.7% year over year to $905,577,673. This growth is partially due to a 4.2% increase in median home price from $290,000 to $302,250. High demand across the MSA and limited inventory pushed the median home price above $300,000, which is a first for the month of September.
New listings for the Austin-Round Rock metro area decreased 2.4% year over year to 2,790 listings in September. During the same period, active listings increased 5.1% to 7,706 listings and pending sales increased 3.3% to 2,362 pending sales. Inventory remained unchanged year over year at 3.0 months, which could also have stifled home sales activity last month.
Lawrence Yun, chief economist at NAR, indicated that the flat sales growth in the Austin area could be due to rising interest rates.
“Higher interest rates have cut affordability and are holding back home sales,” Yun said. “But steady growth in jobs and income will boost housing demand over time. Increasing housing supply as reflected in higher housing permits will also help slow home price growth and help consumers.”
Continued demand for single-family homes in the Austin-Round Rock MSA led to the highest-grossing August on record for Central Texas home sales volume, according to the Market Report released today by the Austin Board of REALTORS®. Strong sales led to double-digit gains in sales dollar volume for homes sold in the five-county MSA, which totaled more than $1.2 billion in August.
“Last month’s housing market activity shows little evidence that the market is slowing as we move into the fall,” Steve Crorey, 2018 president of the ABOR, said. “More homes are entering the market and pending sales growth remains strong year over year.”
In the five-county MSA, home sales dollar volume in August 2018 jumped 10.5% year over year to $1,208,374,131. This is partially due to continued growth in home prices, as the median price increased 8.2% year over year to $322,478. Single-family home sales also set a record in August, rising 3.7% to 3,034 sales.
Pending sales growth in August continued to show strong gains throughout the MSA, increasing 12.1% year over year to 2,798 pending sales. During the same period, active listings for the five-county MSA increased 4.2 percent to 7,887 listings, while new listings spiked 16% to 3,741 listings. Monthly housing inventory remained unchanged from August 2017 at 3.1 months.
“So far, 2018 has shown the highest number of sales ever for the Greater Austin area and we’re on track to set another annual home sales record this year,” Mark Sprague, state director of information capital for Independence Title, said. “Interest rates are expected to go up one-eighth of a point by the end of the year, and another three-eighths to a half of a point next year. Because median household income has increased nationally and locally, rising interest rates are not expected to negatively impact home sales.”
Strong homebuying activity throughout the summer led to double-digit home sales growth in July, according to the Central Texas Housing Market Report released today by the ABOR. The five-county Metropolitan Statistical Area (MSA) experienced the highest volume of home sales since July 2011, and the highest median home price on record for any month.
“Strong pending sales activity in June contributed to a big uptick in home sales growth last month, and pending sales growth was strong again in July, too,” Steve Crorey, 2018 president of the ABOR, said. “This means we could see another uptick in home sales growth in August to end the summer selling season on a high note.”
In the Austin-Round Rock MSA, July single-family home sales increased 8.8% year over year to 3,103 sales, while sales dollar volume increased 13.7% to $1,254,255,680. The median home price increased 6% year over year to a record-breaking $320,000.
For the second month in a row, pending sales growth experienced strong gains across the MSA, increasing 8.3% year over year to 3,201 pending sales in June and 10.8% to 3,065 pending sales in July. However, the number of homes on the market fell during the same time frame. In July, active listings for the five-county MSA fell 2.7% to 7,522 listings and new listings decreased 1.2% to 3,738 listings.
“Housing construction is at an all-time high in Central Texas, but the pace of new housing stock entering the market can’t justify last month’s jump in sales growth on its own. These gains in home sales activity are being driven by pure demand,” Vaike O’Grady, Austin regional director for Metrostudy, said.
“Home sales are up across the board in the Austin area, but declines in housing inventory are almost just as steep. The city of Austin, in particular, lost almost half a month of inventory from July 2017 to July 2018. That's a lot of inventory to lose year over year,” Crorey said. “ABoR housing market data underscores not only the ongoing strong housing demand in our region, but the critical need for more housing stock at all price points in and around Austin.
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.”
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