The Census Bureau’s annual population estimate program cited that the Austin-Round Rock metro area gained about 157 residents per day between July 1, 2013, and July 1, 2014. Naturally, the housing market continues to be very competitive, but are we in a housing bubble? Market analysts admit being nervous about the pace of statewide price increases, with Dr. Jim Gaines, chief economist of the Real Estate Center at Texas A&M University admitting to the Dallas Morning News, “It’s getting scary.”
The Multiple Listing Service (MLS) data recently released by the Austin Board of Realtors (ABoR) which showed single-family home sales and prices hitting an all-time high for September. Austin-area home prices were up 8 percent in September reaching $258,000 in September 2015. The average price folks in Austin paid for a home last month was $324,150, but this isn’t deterring many people from buying homes.
“Affordability issues are a concern among Austinite’s, but I wouldn’t say we’re in a housing bubble,” said Seth Thompson, Broker and Sales Director at HomeCity Real Estate. “As long as the job market remains stable I don’t foresee the demand for homes decreasing any time soon.”
Supporting this notion, 2,603 single family homes were sold in September, which is seven percent more than the same time last year. New listings increased 11 percent to 2,860 while active listings increased four percent year-over-year to 6,759. Showing a bit of slowing down from this time last year, homes spent an average of three more days on the market at 47 days.
“While home prices are rising, the supply seems to be catching up with the demand a bit, allowing inventory to grow slowly,” said Thompson. “The Texas A&M Real Estate Center cites six months of inventory as a balanced market, and we are still well below that. However, the market has remained about the same since this time last year.”
Inventory stats support this, as monthly housing inventory remained unchanged from September 2014 at 2.8 months. The total dollar volume of single-family properties sold increased 13 percent to $843,762,450.
Townhome and condo sales in September 2015 was 269, an 11 percent increase from September 2014. The median price for condos was naturally a bit less than single-family homes at $220,250, which is eight percent more than this time last year. These properties spent an average of 40 days on the market, about the same as last year.
Leasing numbers jumped 15 percent to 1,593 properties leased in Austin. It’s understandable that more people are considering renting, as many perceive renting to be more affordable. In reality, there are tons of reasons to buy a home, even if you need to search outside of the city limits to do so. Check out our blog on reasons to buy vs. rent for more information!
September 2015 Quick Stats
- 2,603 – Single-family homes sold, seven percent more than September 2014.
- $258,000 – Median price for single-family homes, eight percent more than September 2014.
- $324,150 – Average price for single-family homes, five percent more than September 2014.
- 47 – Average number of days single-family homes spent on the market, three more days than September 2014.
- 2,860 – New single-family home listings on the market, 11 percent more than September 2014.
- 2.8 – Months of inventory* of single-family homes, unchanged from September 2014.
- $843,762,450 – Total dollar volume of single-family properties sold, 13 percent more than September 2014.