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AUSTIN, TX – Single-family home sales experienced strong gains in the Austin-Round Rock Metropolitan Statistical Area (MSA) but declined in the city of Austin in the first half of this year, according to the June and Midyear 2019 Central Texas Housing Market Report released today by the Austin Board of REALTORS®.
“We have seen slight dips in Austin’s home sales before, but because this decrease is over the course of six months, it could be indicative of a larger trend,” Kevin P. Scanlan, 2019 president of the Austin Board of REALTORS®, said. “Austin’s limited housing inventory—which dropped below two months in June—and increasing home prices have resulted in fewer sales over time. As Austin continues to be one of the most desired cities to live in the United States, the suburbs are benefiting from this demand.”
While the market continues to grow due to strong demand, Austin’s limited housing inventory and increasing prices are pushing people further into the suburbs, Scanlan added.
People are moving to Austin in greater numbers than those leaving, “which has been true for a very long time and will continue to be for the foreseeable future,” Mark Sprague, state director of information capital for Independence Title, said. “The good news is resales are well in line with where values should be. And, developers are putting more dense communities on the outer rim of the city, a trend which should lead to more affordable pricing comparatively.”
Austin-Round Rock MSA
In the first half of the year, Austin area single-family home sales increased 4.3% year over year to 16,203 home sales, while the median home price increased 1% year over year to $315,000. The volume of homes on the market and pending sales activity increased during the same period. From January to June 2019, new listings increased 1% to 22,047 listings; active listings increased 4.8% to 6,282 listings; and pending sales rose 7.9% to 18,180 pending sales. Sales dollar volume in the Austin-Round Rock MSA was $6,439,059,121—a 6% increase from the first six months of 2018.
This June, single-family home sales activity increased 0.5% year over year to 3,349 sales. During the same period, the median price for a single-family home rose 3% to $334,702. Monthly housing inventory decreased 0.2 months year over year to 2.7 months, well below the Real Estate Center of Texas A&M University’s benchmark of 6.0 months as a balanced housing market.
City of Austin
In the city of Austin, single-family home sales in the first half of the year decreased 1.6% year over year to 4,736 sales, while the median price for a single-family home rose 3.2% to $387,100. During the same period, new listings decreased 3.4% to 6,249 listings and active listings decreased 5.7% to 1,215 listings; pending sales edged upward by 0.2% to 5,229 sales.
In June, the city of Austin home sales decreased 2.3% to 985 home sales as the median price experienced a double-digit percent increase of 10.9% to $420,000. Housing inventory decreased 0.2 months to 1.9 months of inventory, and homes spent an average of 30 days on the market.
Source: Austin Board of REALTORS® (ABoR)