It’s officially springtime in Austin, TX. The weather is warming up, and the city is bustling again! The housing market continues to be extremely competitive, with Austin’s exponential growth, the market is definitely a sellers market. The data for February was just released by the Austin Board of Realtors (ABoR), and we hit an all-time high for February, both in home sales and home prices.
In February 2014, we saw 1,761 single-family homes sell in the Austin area, which is 9% more than this time last year. The median home price for the Austin-area was at $230,500, an 11% gain from February 2013. As new and active listings decreased, home prices continue to rise. The average price also saw a double-digit increase, increasing 12% from February 2013 to $293,746. Inventory remained at historically low levels of 2 months, compared to 2.6 months in February 2013.
Austin-area homes also continue to sell at an accelerated rate, spending an average of 55 days on the market in February 2014, 16 days fewer than 2013. Interest rates show that rates have moved up recently with conventional loan rates around 4.5% and FHA loan rates around 4.25%. In the short term, we may see the crisis in the Ukraine put downward pressure on mortgage rates.
For buyers, the good news is that homes starts are strong, as new home building his a 6-year high last year and we are on a pace to exceed those 2013 levels this year. This will help replenish Austin’s housing stock with much needed new homes. If you would like to search for available homes in the Austin area, you can search by zip code HERE. Also, please watch our market update video, featuring our Broker and Sales Manager, Seth Thompson.