Austin Area Home Sales in May 2015

The recently released Austin Board of REALTORS® report showed yet another median price increase for homes sold in Central Texas in May while the number of single-family home sales decreased slightly. While the market remains hot, especially in the suburbs where home prices are slightly lower than Austin proper, May’s numbers suggest that ever increasing home prices could start affecting the number of homes sold in the area, starting a course correction in the near future.

The median home price for a single-family home sold in the Central Texas area in May increased 9 percent from the previous year to $271,000. This increase set a record for the month of May and continues a rapid increase outside of normal historical appreciation (around 4 percent annually). Affordability has become an increasingly important issue in the Austin area with fewer and fewer homes available under the key starter home amount of $200K. Only 25 percent of single family homes in Central Texas were below $200K, many of these located far outside the employment hub of the Austin city limits.

Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “Affordability remains an issue across the region, identifying a need for Central Texas to address the “missing middle” with an influx of diverse housing stock.”

The average price of a home increased 7 percent to $348,201, showing that many high priced homes are selling in the area. We’ve noticed that many homes over $400K would sell within a few months of being listed at the start of the year, more and more houses in that price range are coming to market and staying around for much longer before closing.

The number of active listings on the market increased 6 percent to 6,323 listings in May 2015, which led to a slight increase in inventory. The Austin-area housing inventory increased 0.1 months year-over-year to 2.7 months, though this is still far beneath the 6.5 months that is considered to be a balanced market. Even with more homes on the market and prices increasing, we are still solidly in a seller’s market, meaning that buyers are receiving fewer concessions and often finding themselves in multiple offer situations.

Austin Area Home Sales in May 2015 Statistics

  • 2,767 – Single-family homes sold, two percent less than May 2014.
  • $271,000 – Median price for single-family homes, nine percent more than May 2014.
  • $348,201 – Average price for single-family homes, seven percent more than May 2014.
  • 42 – Average number of days single-family homes spent on the market, two days more than May 2014.
  • 3,865 – New single-family home listings on the market, three percent less than May 2014.
  • 6,323 – Active single-family home listings on the market, six percent more than May 2014.
  • 2,936 – Pending sales for single-family homes, unchanged from May 2014.
  • 7 – Months of inventory* of single-family homes, 0.1 months more than May 2014.
  • $963,472,167 – Total dollar volume of single-family properties sold, five percent more than May 2014.

Round Rock continues to see strong sales, and inventory has started to increase. A few weeks ago, we saw Round Rock top more than 400 active homes for sale for the first time in over 6 months, so there are more options out there for interested buyers. There are only 40 homes on the market currently under $200K, and many potential buyers are all fighting for these more affordable homes. If you’re looking for a home in the Round Rock, Austin or surrounding area, give us a call at 512.537.4977 to learn how we can help you become a more appealing buyer. If you’re interested in seeing what your home would be worth in today’s market, our Home Evaluations are always FREE and no hassle, so set up an appointment with a RJF Team Listing Specialist at 512.537.4977.

Whatever your real estate need, the RJF Team is here to help you.

 

Source: ABOR