We’re nearing the end of February, and the Austin Board of Realtors (ABOR) has recently released January’s market statistics. January showed continued growth in Austin hitting an all-time high in regards to home prices. The median price for Austin-area homes increased 13% year-over-year to $240,000, while the average price jumped 14% to $310,187. This marks the fourth straight month of double-digit gains in home prices, making certain parts of the city inaccessible to people with lower incomes.
“First time home buyers and young families may be pushed farther out into the outskirts of town,” said Keith Dunham, C.E.O. at HomeCity Real Estate. “Places like Downtown, south Austin north of 290, Westlake, Tarrytown, and Hyde Park are simply too pricey for many Austin residents.”
It’s not only homebuyers that are getting priced-out of many areas, but leasing tenants are feeling the pressure too. The median price for Austin-area leases in January 2015 was $1,430, up 4% from this time last year. With more and more people moving to the Austin area every day, housing affordability is becoming a challenge.
“On the flip side, Austin’s affordability index is still one of the best in the nation,” said Dunham. “Austin is a city with a large amount of discretionary income. While first-time homebuyers may see the city as being overly expensive, people more established in their careers still find it very affordable. People moving to Austin for its tech jobs, or people use to living in big cities will also find Austin affordable.”
Proving this to be true, single-family home sales increased 11% to 1,547 homes sold. The Austin-area monthly housing inventory was 2.2 months in January 2015, 0.2 months higher than January 2014. While inventory increased a bit, it is still well below the 6.5-month inventory level the Texas Real Estate Center cites as a balanced market.
Homes spent about the same amount of time on the market as last year, at 63 days. If we continue on the same track as last year, we’re in for a competitive summer in Austin real estate. Heavy season in 2014 saw most homes (especially in the more competitive areas) receiving multiple offers, often within a homes’ first day or two on the market.
Finally, the total dollar volume of single-family homes reached $479,859,289. This is a whopping 27% more than the same time last year, and further proves that the Austin real estate market is showing no signs of slowing down.
Austin-Area January 2015 Quick Stats:
- 1,547 – Single-family homes sold
- 2.2 - Months of inventory
- $240,000 – Median price for single-family homes
- $310,187 – Average price for single-family homes
- 63 – Average D.O.M. (Days on Market).
- $479,859,289 – Total dollar volume of single-family properties sold