The Austin housing market continues to see extraordinary increases in the number of homes sold and ever-increasing sales prices throughout the first half of the year. In a report recently released by the Austin Board of REALTORS®, mid-year housing statistics for Central Texas shows home sales grew 6.1 percent compared to 2015 while the median sales price increased an additional 7 percent year-over-year.
The President of the Austin Board of REALTORS® Aaron Farmer said, “Despite the ongoing housing shortage and affordability challenges impacting our region, population growth and housing demand continue to drive home sales upward. The Austin-Round Rock housing market is on track to outpace 2015 market levels, which was a record-breaking year for home sales.”
Overall 14,482 homes sold in the five county area covered in the Austin-Round Rock metroplex in the first six months of the year. The median price hit $282,000 while the number of new listings coming on the market increased 5.7 percent to 20,060 homes listed. These increases have a great impact on the local economy as $5,073,874,678 changed hands in transactions so far this year, a 11.5 percent increase from the first half of 2015.
While the first half of the year shows huge increases, it doesn’t look like home sales will slow down any time soon. In June alone, home sales increased 8.5 percent in the Austin-area while the median price rose 8.2 percent year-over-year to hit $295,500. Prices continue to increase as more and more people move to Austin and search for housing. Inventory remained stable at 2.5 months, still significantly below the 6.5 month level that signifies a balanced market. Sellers, in many cases, still have the upper hand in real estate transactions here.
Our strong economy and exception job growth are attracting people from all over the country to move in the area. Affordable housing has continues to be an issue as most homes within the Austin city limits continue to see exponential growth in prices and taxes. As more people move to the area and find they have to purchase homes in the surrounding suburbs for affordability reasons, transportation issues will continue to become a growing issue.
“The Central Texas housing market is performing very well, but extreme housing shortages across the region continue to be a challenge,” said Jim Gaines, Chief Economist at the Real Estate Center at Texas A&M University. “Homes under $300,000 have less than two months of inventory in the Austin-Round Rock MSA, which means that housing at these price ranges is essentially nonexistent. The growing ‘donut effect’ of homes sales activity as homebuyers move outside Austin city limits in search of more affordable housing is on pace to continue in the near future."
The housing market in Williamson county in particular has seen huge jumps in interest and sales. In June alone, home sales increased 11.9 percent year-over-year, hitting 1,140 homes sold. The median price rose 8.7 percent to $269,500 during the same time period. Inventory decreased slightly to 2.1 months, meaning available homes remain difficult to find for many interested buyers. In the first six months of the year, more homes sold in Williamson county than the city of Austin despite having less than half the population of Austin.
“It’s important that we think of the growing housing affordability crisis not just as an Austin issue, but also as a regional challenge,” concluded Farmer. “Housing supply shortages have reached critical levels throughout the region and areas with affordably priced homes are becoming smaller and father away from jobs. Some homebuyers are now looking at homes an hour or more outside of Austin to find a home that they can afford. City of Austin leaders as well of those of surrounding cities must come together to solve our region’s challenges in housing supply, affordability and infrastructure.”
If you’re thinking of selling your house, it’s not too late to take advantage of all the summer buyers out there. Call the RJF Team at 512.537.4977 or email us at Info@RJFteam.com to learn more about how we can position you and your house to take top dollar during this crazy market.
Source: ABOR
