While the fall and winter seasons typically mean the housing market slows down, 2015 is breaking records and remaining healthy throughout the colder months. Austin area home sales increased year-over-year for the fifth month in a row in October 2015 according to the Multiple Listing Service (MLS) report released recently by the Austin Board of Realtors. Not a huge increase, but still significant for this time of year, home sales rose two percent to 2,378 sales.
Also increasing was our median home price, which increased five percent to $252,790 year-over-year. The job market continues to grow, and people continue to move to the area… these are the makings of a strong housing market. In fact, Freddie Mac’s Multi-Indicator Market Index (MiMi) recent housing report ranked Austin as the second most stable housing market metro by averaging purchase applications, payment-to-income ratio, current on mortgage, and employment rates.
While this is great news for our area, it’s also important to remember that housing affordability remains an issue for many Austin residents. Back in September ABoR reported that household incomes have not been expanding at the same rate as the cost of living in Austin. Between August of 2010 and now, the median home price has increased over $65,000. Many residents are being forced to buy outside of city limits in places like Buda, Cedar Park, and Pflugerville. We’re becoming a metropolis, whether we like it or not.
Despite affordability issues, homes are still getting snatched up much faster than normal, with homes averaging 50 days on the market, one day fewer than October 2014. There is currently 2.6 months of inventory, slightly less than this time last year. The Texas A&M Real Estate Department cites around six months to be a balanced inventory, and we are still well below that. The Austin area still sold ten percent more dollar volume than October 2014 at $792,948,856. This makes total sense considering housing prices and sales volume are continuing to rise.
Those choosing to lease are also seeing an increase in living costs and an increasingly competitive leasing market. Properties spent an average of 41 days on the market, two fewer days than October 2014 and nine fewer days than homes for sale. A total of 1,385 properties were leased in our city, one percent more than this time last year. Good news for those leasing – active property listings increased by five percent last month!
October 2015 Quick Stats:
- 2,378 – Single-family homes sold, two percent more than October 2014.
- $252,790 – Median price for single-family homes, five percent more than October 2014.
- $333,452 – Average price for single-family homes, seven percent more than October 2014.
- 50 – Average number of days single-family homes spent on the market, one day fewer than October 2014.
- 6,342 – Active single-family home listings on the market, three percent more than October 2014.
- 2.6 – Months of inventory* of single-family homes, 0.1 months less than October 2014.
- $792,948,856 – Total dollar volume of single-family properties sold, 10 percent more than October 2014.