August Austin Area Home SalesThe recently released report from the Austin Board of REALTORS® shows that August Austin Area home sales increased 8 percent year-over-year to 2,943 single family homes sold last month. The median sales price set a record for the month of August, also increasing 8 percent year-over-year to $265,000. This increase outpaces the average growth of household income in the Central Texas area over the same time period, adding to the growing concerns about housing affordability in the area.

Barb Cooper, 2015 President of the Austin Board of REALTORS®, explained, “As Austin REALTORS®, we’ve seen our city expand in ways we never could have imagined, but household incomes have not been expanding at the same rate as the cost of living in Austin. We will continue working with our city’s leaders to find a solution to the complex affordability issues, with the end of goal of providing affordable and diverse housing stock for our growing population that aligns with the actual incomes of Central Texas residents.”

According to the City of Austin’s 2014 Comprehensive Housing Market Analysis, for a home to be considered affordable, it should cost no more than 30 percent of the gross monthly income of a family. For a household income of $50,000, that would be a monthly mortgage payment of $1,250 a month or a home that costs $200,000 to $215,000. Considering that the most recent data from the US Bureau of Labor Statistics shows that approximately 65 percent of Austin-area professionals make less than $50,000 in 2014, the majority of potential home owners in the area probably can’t afford the average cost of an Austin-area home.

Overall median home prices have risen more than 30 percent since August 2010 or about $65,000 in the last five years on average. Of course this amount is just an average for the area overall, and shouldn’t be taken as a rule that a home purchased in 2010 is automatically now worth $65,000 more. Some homes could be worth much more or less depending on the type of home, the current condition, and where the home is located.

The number of available homes decreased 0.1 months compared to August 2014, staying at 2.9 months worth of inventory. This is still significantly below the 6.5 months need for a balanced housing market, according to the Real Estate Center at Texas A&M University. This number is determined by how long the current slate of available homes will sustain the current rate of purchases, so it’s found based off of dividing the number of homes sold in the last 30 days by the number of current homes active on the market. New listings increased slightly and the number of active listings increased as well, but the total number of homes sold in the last month increased as well, keeping the inventory levels stable.

August Austin Area Home Sales Statistics

  • 2943 – Single-family homes sold, eight percent more than August 2014.
  • $265,000 – Median price for single-family homes, eight percent more than August 2014.
  • $329,620 – Average price for single-family homes, six percent more than August 2014.
  • 42 – Average number of days single-family homes spent on the market, unchanged from August 2014.
  • 3,364 – New single-family home listings on the market, two percent more than August 2014.
  • 6,979 – Active single-family home listings on the market, four percent more than August 2014.
  • 2,686 – Pending sales for single-family homes, 11 percent more than August 2014.
  • 9 – Months of inventory* of single-family homes, 0.1 months less than August 2014.
  • $970,071,660 – Total dollar volume of single-family properties sold, 15 percent more than August 2014.

We here at the RJF Team saw a bit of a lull in the suburban market towards the end of August and the beginning of September due to the start of school, but in the last few weeks, home buyers have once again been out in force. More homes on the market are at a higher price point, so they sit on the market a bit longer, but the homes that are priced correctly and in the most desirable areas are still going under contract in a week or two. Housing trends are always very specific to the neighborhood a buyer is looking in, so if you’re thinking of buying or selling a home, call us at 512.537.4977 to learn more about housing trends in the areas you are most interested in or request a CMA for your home here.