In Austin, 2014 broke records as home prices continued to rise while home sales also increased. This is not surprising, seeing as how the US census bureau named Austin the 3rd fastest growing big city in America since 2000. This is heavily related to our job growth over the last 15 years.
“Austin continues to have an increasingly growing job market, which is leading to an influx of people moving here. Last year the Austin Business Journal calculated that 110 people were moving to Austin each day, and that number might be growing,” said Keith Dunham, C.E.O. at HomeCity Real Estate. “New home builders are struggling to keep up with the demand, but people still want to live close to Downtown and in Central Austin. This is driving home prices in these more desirable areas high, and people are willing to pay for a great location.”
The Austin Board of Realtors recently released their December and 2014 year end statistics, which showed December breaking the record for sales volume. Austin sold 2,283 homes in December, a 14% increase over December of 2013.
In 2014, home sales volume slightly exceeded 2013 levels with 27,768 homes sold, a 2% increase from 2013. Housing inventory remained low in 2014, we ended out at 2.2 months, just .2 months higher than the year prior. Remember, that means if no new homes hit the market, we should be sold out in just 2.2 months. That’s well below the 6.5 month level the Texas Real Estate Center considers a balanced market. Ultimately, this means Austin is a sellers market!
Over the course of 2014, the median price increased 8% over 2013 to $242,500. Additionally, the average price for single family homes increased 7% to $309,975. As a result of the higher volume and prices, the total sales dollar volume for homes topped $8.6 billion in 2014, an increase of more than $673 million from 2013.
If Austin wants to remain a relatively affordable place to live in the coming years there needs to be more homes on the market, and these need to include all price ranges and areas of Austin.
2014 Housing Market Stats at a Glance:
- 27,768 – Single-family homes sold
- 2.2 - Months of inventory
- $242,500 – Median price for single-family homes
- $309,975 – Average price for single-family homes
- 47 – Average D.O.M. (Days on Market).
- $8,607,385,376 – Total dollar volume of single-family properties sold