There were a lot of factors at the national and state level that would indicate a housing slowdown with Hurricane Harvey and the overhaul of the tax code, but locally homes in the In the Austin-Round Rock MSA grew at a record breaking pace in 2017. Although compared to the previous few years there has been a normalization in the market and a large increase of new homes available throughout Austin, the price of homes increased by 5.4 percent to $299,900 in 2017. Home sales increased annually by 2.4 percent to 30,059 sales, an all-time high for the area.
City of Austin
In the city of Austin, the median price for single-family homes increased annually to $362,000—an all-time high—and sales increased annually by 2.5 percent to 9,278 sales. In December, sales increased by 13.4 percent to 802 sales for the month, a contrast from October and November when the city saw declining sales. Housing inventory decreased year over year from 1.6 months of inventory in 2016 to 1.5 months of inventory in 2017.
While the number of houses available in Austin declined, inventory gradually increased in the suburbs. Home sales indicate families continue to move to surrounding areas, seeking more affordable housing options.
By the end of 2017, Williamson County saw steady increases in single-family home sales and inventory. Leander experienced the greatest growth with a 7.4 percent increase in sales, followed by Cedar Park (4.5 percent) and Round Rock (3.7 percent). While the median home price in Williamson County increased to $275,000, it still remains significantly lower than pricing in Austin. Housing inventory in Williamson County steadily increased from 1.8 months of inventory to 2.1 months of inventory.
“As more families move outside city limits, the city of Austin will lose out on economic development opportunities,” Crorey said. “Initiatives such as CodeNEXT can pave the way for smarter more sustainable growth in Austin, and in turn make housing more affordable across the region. It’s imperative that we get a handle on our growth as a region through these types of initiatives.”
Annually, single-family home sales increased by 4.8 percent to 3,472 sales in Hays County. Buda contributed to this growth with a 2.9 percent increase in homes sold, while sales in Kyle declined by 3.3 percent. The median price of homes in Hays County rose to $259,000, and inventory levels grew year over year from 2.2 months of inventory in 2016 to 2.4 months of inventory in 2017.
Statistics and Graphic courtesy of The Austin Board of REALTORS® (ABoR)