Single-family home sales volume experienced strong gains across the Austin-Round Rock Metropolitan Statistical Area (MSA) in May, while home sales dollar volume topped $1.2 billion and set an all-time high for sales dollar volume, according to the May 2017 Central Texas Housing Market Report released recently by the Austin Board of REALTORS®.
Brandy Guthrie, 2017 President of the Austin Board of REALTORS®, commented, “Housing is the backbone of our region’s economy and the heart of our communities. Housing demand continues to be at an all-time high in and around Austin, indicated by steady growth in home sales and prices, listing activity and housing inventory. The concurrent gains in listing activity and inventory, in particular, are a positive sign that housing inventory could continue to increase throughout the aggressive summer selling season.”
In May 2017, single-family home sales volume increased 9 percent year-over-year to 3,170 home sales in the Austin-Round Rock MSA and rose 9.7 percent year-over-year to 993 home sales in the city of Austin. Home sales growth was equally strong at the county level during the same time frame, with single-family home sales volume jumping 14.8 percent to 364 home sales in Hays County, increasing 6.3 percent to 1,546 home sales in Travis County and increasing 8.3 percent to 1,117 home sales in Williamson County.
Coupled with rising home prices, this recent surge in home sales activity made May 2017 the highest-grossing month for Central Texas real estate in the region’s history. For the first time this year, single-family home sales dollar volume topped $1 billion ($1,234,217,617) in a single month within the five-county area, which is an increase of 18.4 percent from May 2016. This is an all-time high for home sales dollar volume in the Austin-Round Rock MSA.
During the same time frame, the median price for single-family home sales increased 8 percent year-over-year to $310,000 in the Austin-Round Rock MSA and rose 8.6 percent year-over-year to $380,000 within Austin’s city limits. At the county level, median sales price jumped 10.4 percent to $262,250 in Hays County, increased 8.5 percent to $371,000 in Travis County and increased 6.5 percent to $284,375 in Williamson County.
Strong gains in listings activity as well as pending sales activity across the region continued in May 2017, which in turn continues to boost both home sales volume and housing inventory levels. In the Austin-Round Rock MSA, active listings jumped 22 percent year-over-year to 6,972 listings; new listings jumped 15 percent year-over-year to 2.1 months of inventory. An analysis of monthly housing inventory at the price class level, however, showed that inventory levels for homes priced under $250,000 mostly remain under one month of inventory throughout the region.
Housing inventory levels also continued to rise in May 2017, increasing 0.4 months annually to 2.8 months of inventory across the five-county MSA. Within the city of Austin, monthly housing inventory rose 0.2 months year-over-year to 2.1 months of inventory. An analysis of monthly housing inventory at the price class level, however, showed that inventory levels for homes priced under $250,000 mostly remain under one month of inventory throughout the region.
“Housing inventory is on the rise, but the housing stock that’s being added to the market is increasingly at higher price points,” commented Guthrie. “Rising property values and housing development costs are rapidly causing an upward shift in the price range of residential real estate available within Austin and across the region. This trend will not be reversed until our city is able to come together to create strong, purposeful changes to Austin’s zoning maps that paves the way for housing at all price ranges to exist.”
Guthrie concluded, “The Central Texas housing market is moving at an increasingly faster pace. For every day Austin does not have a functioning Land Development Code, our commutes lengthen, housing costs in our neighborhoods increase and our residents’ quality of life is impacted. The Austin Board of REALTORS® urges the City of Austin not to delay this important task any further, and we will continue to work alongside our City and our community to help create the best path to meet Austin’s needs now and with our future growth.”