Another Record-Breaking Year for Austin Real Estate
The Central Texas real estate market broke records in 2016 for home sales volume and also reached new highs in home prices, according to the Austin Board of REALTORS® December and Year-End 2016 Central Texas Housing Market Report.
Single-family home sales for 2016 increased 3.9 percent from 2015, to an all-time high of 29,569 home sales in the five-county Metropolitan Statistical Area. Median price increased 7.2 percent to $284,000, and homes stayed on the market an average of 50 days, two days longer than in 2015. Housing inventory was unchanged at a two month supply, very low in comparison to a typical balanced market of 6.5 months, according to the Real Estate Center at Texas A&M University. The total dollar volume of home sales for the MSA was $10,456,084,996, an increase of 9.1 percent compared to 2015.
For the month of December, single-family home sales rose 1.9 percent compared to December 2015 to 2,373 home sales. Median price rose 6.9 percent for the month to $290,000.
Austin Board of REALTORS® President Brandy Guthrie suggested the increase in time on the market, as well as a slowing of home sales and home price growth, indicate “a return to less aggressive market conditions.” She said, “The Central Texas housing market is slowly beginning to align with long-term historical trends.”
Independence Title State Director of Information Capital Mark Sprague said, “While the region’s job growth ha(s) slowed over the last few years, overall the Central Texas economy and housing market continue to be strong. The 2017 housing market will likely outpace last year’s levels, but at a less robust margin. Recent increases in mortgage rates could continue the current pace of home sales growth into the first part of the year.”
For the City of Austin, single-family home sales increased 1.7 percent from 2015 to 9,049 home sales. Median home price in Austin increased 5.8 percent to $340,000. Active listings were up 16.5 percent for the year, with homes spending an average of 41 days on the market, five more days than in 2015.
For the month of December, Austin home sales were down 7.8 percent to 705 sales. Median price was up 9.2 percent to $355,000. Inventory increased 0.1 months compared to December 2015, to 1.6 months of inventory, and homes were on the market an average of 50 days, five days more than December 2015.
Guthrie said, “The local market areas with critically low housing inventory levels have grown dramatically over the last year, and our region’s housing market will never be balanced until there is a greater influx of housing stock of all types and price points.”
Austin-area December 2016 Sold Homes
- Number of sold homes: 2,373 (Up 2% compared to December 2015)
- Median sold price: $290,000 (Up 7% compared to December 2015)
- Days on the market: 60 (Up 2 days compared to December 2015)
Austin-area December 2016 Single-Family Homes on the Market
- New listings: 1,604 (Up 3% compared to December 2015)
- Active listings: 4,921 (Up 6% compared to December 2015)
- Pending sales: 1,680 (Up 15% compared to December 2015)