Austin Home Sales Take a Dip, Prices Hit Record
Home sales in the Austin area took a dip in November 2015, decreasing four percent compared to November 2014, according to a Multiple Listing Service (MLS) report by the Austin Board of REALTORS®. The retraction follows an increase in home sales for five consecutive months and is only the second month this year to show a decrease, along with May.
While sales took a small dip, prices kept rising: the median price for Austin-area homes increased 10 percent in November 2015 to $270,000, which is a record for that month. The average price also set a record, increasing 12 percent in November to $347,292. The total volume of single-family properties sold was $629,987,688, eight percent more than November 2014.
“While November single family home sales volume decreased slightly compared to last year, year-to-date home sales volume continues to outpace 2014,” said ABOR President Barb Cooper. “With the Austin-area population exceeding two million over the summer, growth in Central Texas is showing no signs of slowing.”
Compared to November 2014, the number of new listings was one percent higher, and the number of active listings was three percent higher. Pending sales increased four percent, and homes took an average of 54 days to sell, one day less than this month last year.
The Austin area housing inventory level remained unchanged in November at 2.4 months, over four months shy of the 6.5 months considered balanced between sellers and buyers by the Real Estate Center at Texas A&M University.
However, “It’s encouraging to see an uptick in pending sales, active listings and new listings as a sign of more homes entering the market. Sellers are taking advantage of competitive market conditions and if active listings continue to increase year-over-year, it could lead to a much-needed increase in the Austin-area’s housing inventory level,” said Cooper.
The ABOR report also referred to the recent increase in interest rates by the Federal Reserve: “The Federal Reserve’s recent decision to raise interest rates is a sign of a healthy economy, and we’re fortunate that Austin has one of the strongest economies and housing markets in the nation,” said State Director of Information Capital at Independence Title Company Mark Sprague. “Millennials—a large portion of Austin’s population—have never seen interest rates go above 10 percent, so some might be concerned about the impact higher interest rates will have on Austin’s housing market and economy. Even with this increase, however, interest rates are still among the lowest they have ever been, and we do not anticipate a significant impact on the Austin-area housing market.”
November 2015 Sold Homes
- Number of sold homes: 1,814 (Down 4% compared to November 2014)
- Average sold price: $347,292 (Up 12% compared to November 2014)
- Median sold price: $270,000 (Up 10% compared to November 2014)
- Days on the market: 54 (Down one day compared to November 2014)
Single-Family Homes on the Market
- New listings: 2,095 (Up 1% compared to November 2014)
- Active listings: 5,703 (Up 3% compared to November 2014)
- Pending sales: 1,965 (Up 4% compared to November 2014)