Austin-Area Double-Digit Home Sales Increases Likely Indicate Record Year
Widespread double-digit single family home sales increases across the Greater Austin area in November 2016 make it likely the area will break sales records for the year, according to the Austin Board of REALTORS® November 2016 Central Texas Housing Market Report.
The Austin-Round Rock area saw a home sales increase of 15.8 percent year-over-year, and the City of Austin had a sales increase of 13.7 percent. Hays County had the largest county-wide increase in home sales, with a jump of 24.2 percent, followed by Williamson County with a 14.7 percent increase and Travis County with an increase of 11.3 percent.
In all, sales totaled $769 million for the Austin-area, which is an increase of 24 percent compared to November 2015.
“This end-of-year surge in home sales is an unusual and welcome surprise to what’s typically the lowest months for Central Texas home sales volume during the year,” said ABOR President Aaron Farmer, who attributed the sales growth to the region’s steady population growth. “At the current pace, 2016 will likely turn out to be another record year for Central Texas home sales.”
Median home prices also rose in November 2016. For Austin-Round Rock, median home price increased seven percent compared to November 2015, to a median price of $294,245. Median price for Austin increased four percent to $342,000. Williamson County had a 12.1 percent in median price, to land at $275,000.
Inventory remains on the very low side for the entire area. With inventory of six months regarded as a balanced market by the Real Estate Center at Texas A&M University, Austin-Round Rock remained unchanged at 2.3 months, and inventory within Austin increased 0.1 months to 1.9 months.
“Housing inventory will continue to be one of the biggest challenges facing the Central Texas housing market in 2017,” said Farmer. “In some local markets such as Round Rock, inventory levels have fallen below 1.0 months, which means that available housing stock is practically non-existent.”
It’s worth noting that interest rates recently increased by 0.25 percent. Independence Title State Director of Information Capital Mark Sprague attributed the home sales increases to rising interest rates, as well as the completion of the United States Presidential election. “Uncertainty regarding the election led to a relatively sluggish economy in August and September. It appeared that many buyers were waiting to see how the election turned out before deciding to buy. Rising interest rates are also likely encouraging more people to buy a home. Millennial homebuyers, who comprise 51 percent of the Central Texas market, have never experienced an interest rate greater than four percent and thus could be motivated to buy sooner.”
Austin-area November 2016 Sold Homes
- Number of sold homes: 2,055 (Up 16% compared to November 2015)
- Median sold price: $294,245 (Up 7% compared to November 2015)
- Days on the market: 54 (Up 1 day compared to November 2015)
Austin-area November 2016 Single-Family Homes on the Market
- New listings: 2,112 (Up 5% compared to November 2015)
- Active listings: 5,626 (Up 6% compared to November 2015)
- Pending sales: 2,151 (Up 18% compared to November 2015)