While the recently reported a national “housing slump” – here in Austin, the local market is still setting records. The local housing report released by the Austin Board of Realtors last week revealed October Austin-area sales topping $900 Million, a new monthly record.
Real Estate Stats At A Glance:
(Year-over-year October 2017 to October 2018, Austin-Round Rock MSA)
- Single-family home sales activity up 4% to 2,347
- Median price for a single-family home up 8% to $308,355
- Average of days on the market up 3 to 59 days
- Average of 3.0 months on inventory up .1
- New listings on the market up 4% to 2,871
- Active homes on the market up 8% to 7,434
- Pending homes on the market up 3% to 2,444
“Market demand for new homes in the Austin area continues to be robust this fall, especially in price points below $300,000,” Vaike O’Grady, Austin regional director for MetroStudy, said. “Factors such as inclement weather have slowed development, and a lack of available lots has pushed the housing market farther out from Austin proper. However, the fundamentals in Austin have not changed. The demand for housing is so great that if the product is priced correctly and in a desirable location, it’s going to sell.”
In the city of Austin, similar year over year results revealed total home sales up 7.8% and new home listings increased by 5%. Our current inventory remained more or less flat at 2.1 months of inventory (6 months of inventory is indicative of a balanced buyer-sellers market).
Housing Demand and Affordability
Even though new listings are increasing (mostly in Austin’s suburbs), the demand is still far greater than what’s being produced.
With a low 2.6% unemployment rate, Austin has no shortage of employed, successful would-be homeowners. What we lack is homes for sale that correspond to their income levels. Many of these would-be-buyers are of millennial age (one of largest age demographics both nationally and locally), and those individuals are starting to have families of their own. As this age bracket comes into prime home-buying age, the housing shortage in Austin will only increase.
“With the strong passage of the affordable housing bonds on Election Day, I’m hopeful our city leaders are feeling a mandate to use all the tools in the toolbox to increase the housing supply our community so desperately needs,” Steve Crorey, ABOR President said in a statement.
The affordable housing measure, dubbed Proposition A, will inject $100 million into land acquisitions earmarked for the development of affordable housing. An additional $98 million will be poured into rental housing development assistance, while $28 million will be set aside for a homeownership program. Another $28 million will go to a home repair and rehabilitation fund.
It’s Official, Amazon HQ2 isn’t Coming to Austin
…And, for so many reasons, we’re good with it.
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