October broke records in the Austin housing market with the largest year-over-year increase in home sales to date. Single family home prices also set a record, with the highest figures recorded ever for this month. Prices keep going up, but homes continue to sell. This is because people continue to move to Austin, and despite the more desirable areas having higher home prices, people want to be as close as possible to Austin's epicenter.
"People want to be close to work, amenities, and downtown. They want to make sure their children get to attend the highest rated schools. This is why they will continue to pay more for homes in these areas," said Keith Dunham, C.E.O. at HomeCity. "As long as Austin continues to show a strong job market, our real estate economy should show no signs of slowing down."
Affordability is also an issue that arises when we see record breaking months like this. Increases so significant could block some people out of home ownership, or force them to live farther outside of city limits. The Austin Board of Realtors (ABoR) released their market stats recently which showed homes returning to double-digit increases in October. The median and average price both increased 11% this year to $240,000 and $311,028 respectively.
As we mentioned before, sales were still up soaring 16% to 2,403 single-family homes sold. This is an all-time high for Austin in the month of October. Monthly housing inventory did benefit from more listings entering the market, increasing .2 months year-over-year to 2.7 months in October 2014. Please note that we are still well below six months of inventory, which is considered to be a balanced market.
While Austin-area homes continue to sell quickly, the average number of days homes spent on the market increased year-over-year for the first time since August 2011. Homes spent an additional 2 days on the market in October 2014 compared to October 2013, for an average of 50 days.
The combination of low inventory, extreme demand, and rising prices makes Austin a serious sellers market. Around $747,400,284 worth of single-family homes sold last month, that's 29% more than October 2013.
The rental market remains hot, with a total of 1,416 properties leased last month. This is 17% more than October of 2013. The median price for leases in Austin was $1,450, which is five percent more than last year. If rental prices continue to rise, affordability will still remain an issue. In this extreme market, it's imperative to have the help of a licensed Realtor, whether you plan to buy or rent in Austin.
October 2014 Austin Housing Market Statistics Compared to 2013:
- 2,403 single-family homes sold, up 16%
- $240,000 was the median prince for single-family homes, up 11%
- $311,028 was the average price for single-family homes, up 11%
- 50 was the average number of days homes spent on the market, up two days
- 2.7 months inventory, 0.2 months more than 2013
- $747,400,284 were spent on single-family properties, up 29%