Housing affordability in Austin is becoming a concern with home prices rising every day. For the second month in a row Austin-area home sales declined year over year. While the city is wealthier than it was 10 years ago (with one in four households earning an income of $100,000 or more), many first time homebuyers are now priced out of an affordable range. First time buyers, as well as buyers looking to move up are a significant portion of homebuyers in the Austin area, which is why home sales are falling.
The Austin Board of Realtors recently released their market data for August, showing the number of homes sold dropping 4% to 2,835 homes sold last month. “We had a huge boom last year in August and we are seeing a normalization of the market for this year”, said Keith Dunham, C.E.O. at HomeCity Real Estate. “Real estate is based on job growth and that isn't slowing down anytime soon in Austin. August is just a hiccup in the projected long rise in our market.”
Don’t get us wrong – homes are still flying off the shelves with the average number of days on market dropping one day to 42 average days on market. With the median home price up 11% at $247,500, this is no small feat.
The number of active single-family home listings on the market increased 10% to 6,707 homes on the market. 3,310 of these were new single-family homes. Accordingly, the amount of inventory has gone up 0.2 months to three months inventory. The real estate department at Texas A&M University cites six months as a balanced market. While we’re not quite there yet, we are on the road to a more balanced real estate market in Austin.
Over all, $882,858,690 worth of single-family properties sold in August 2014, which is 4% more than August 2013. People are still moving to Austin at an incredible rate, and those people need homes to live in. Dunham says, “According to the Austin Business Journal, an average of 110 people are moving to our city every day! This factors in the few who are leaving, but there don’t seem to be many. That makes Austin one of the fastest growing large cities in America!” He also states that the reason for this is our larger than life job market. “Employment opportunities continue to fuel our local economy. Austin has led the nation in job growth with Forbes citing a 26.5% increase since 2001.”
The rental market is also incredibly hot, with a total of 2,109 properties leased last month. This is three percent more than August of 2013. The median price for leases in Austin was $1,500, which is seven percent more than last year. If rental prices continue to rise, it would be wise to invest in buying a home before prices go up any further.
August 2014 Austin Housing Market Statistics Compared to 2013:
- 2,835 single-family homes sold, down 4%
- $247,500 was the median prince for single-family homes, up 11%
- $311,414 was the average price for single-family homes, up 9%
- 42 was the average number of days homes spent on the market, down 1 day
- 3.0 months inventory, 0.2 months more than 2013
- $882,858,690 were spent on single-family properties, up 4%