Home sales declined across most of the Austin-Round Rock Metropolitan Statistical Area (MSA) in September, while inventory levels continued to increase, according to the September 2017 Central Texas Housing Market Report released today by the Austin Board of REALTORS®.
"It is important to keep in mind that although home sales dipped in September, this is compared to 2016 which was the record setting home sale year for the Austin-area. So while sales are down and inventory is rising there is still a healthy demand in the market well above the national and state averages." Michele Turnquist, CEO of Engel & Volkers Austin.
Lawrence Yun, Chief Economist and Senior Vice President of Research at the National Association of REALTORS®, agreed: “Austin has had one of the fastest job growth rates in the country over the past decade and consequently one of the strongest housing markets with rising sales. But steady depletion of housing inventory is resulting in a fast rise in home prices and affordability challenges. The construction of single-family homes as well as condominiums needs to ramp up higher in order to fully satisfy housing demand and maintain housing affordability. Otherwise, job growth could stall and bring less dynamism to the local economy.”
Single-family home sales in the Austin-Round Rock MSA decreased 4.3 percent year-over-year to 2,433 home sales in September 2017. Single-family home sales also declined in most of the counties in Central Texas, with the exception of Williamson County (up 1.0 percent year-over-year to 873 home sales). Home sales declined in Travis County (down 8.6 percent year-over-year to 1,146 home sales), Hays County (down 0.3 percent year-over-year to 299 home sales) and the city of Austin (down 4.1 percent year-over-year to 719 home sales).
Home prices in the five-county MSA continued to rise at a steady pace in September. During the same time frame, the monthly housing inventory for single-family homes in the Austin-Rock MSA continued to rise for the ninth consecutive month increasing 0.3 months to 3.0 months. In the city of Austin, median price increase 4.0 percent to $355,000 in September, while monthly housing inventory remained unchanged at 2.4 months of inventory. The increase in housing inventory has led to a recent spike in new and active listings.
Info and graphics courtesy of The Austin Board of REALTORS® (ABoR)