Home sales year-over-year declined in last month, however, according to market experts our local Austin real estate market is still poised for a record-setting year.
Single family sales activity declined 2.7% to 3,299 sales while housing prices continued to increase in June. Median home prices increased 4.3% to $313,000 which shows that the market is staying strong, the problem that we continue to face is lack of inventory. “The Central Texas housing market is among the top three in the country. The region’s population growth, particularly along the I-35 corridor, is fueled by diversified economic opportunities that bring jobs, new businesses, and resources across multiple industries,” suggested Jim Gaines, chief economist at the Real Estate Center at Texas A&M University.
Real Estate Stats At A Glance:
- Single-family home sales activity declined 2.7 percent y-o-y to 3,299
- Median price for a single-family home rose 4.9 percent y-o-y to $326,250
- Monthly housing inventory decreased 0.1 months y-o-y to 2.9 months
- Average of 44 days on the market, down 2 days from May
- Average of 2.9 months on inventory down .1%
- New listings on the market 4138 down 3%
- Active homes on the market 7378 down 1%
- Pending homes on the market 3201 up 8%
Jobs, jobs, jobs.
Increasing new jobs in Austin indicate no foreseeable end to the demand for housing and a continued lack of inventory.
This past month we learned that in summer 2019 Austin will be welcoming the U.S Army Futures Command – which brings with it 500 new jobs as well as increased opportunity for our ever growing tech industry in the security and military sectors. In addition, The Zebra, an insurance technology startup here in Austin is moving its headquarters over to East 6th Street, where it also plans to add more than 100 employees by the end of 2019.
City Moves to Aid Affordable Housing
As Austin grows and housing prices increase at a record pace, affordable housing continues to lurk as one of our main challenges in the community. This past month, the Austin City Council stepped up their game by approving a $925 million dollar bond that will be put to voters this November which includes a historic level of funding for affordable housing. The full $925 million will be allocated across at seven categories:
- $250 million for affordable housing
- $38 million for public safety
- $16 million for health and human services
- $184 million for flood mitigation and open space
- $128 million for libraries and cultural centers
- $149 million for parks and recreation
- $160 million for transportation infrastructure
“As we go around the city, the No. 1 place that this community wants us to invest in ourselves is in housing and affordability,” Mayor Steve Adler, who voted in support of the bond, said.
The bond will be paid for, at least in part, by property tax increase. More details can be found here.