2017 on pace to be another record-breaking year
The real estate market for the Austin-Round Rock Metropolitan Statistical Area is poised for another record-breaking year in 2017, following an increase in home sales in October 2017. According to the Austin Board of REALTORS® Central Texas Housing Market Report, Austin-area single family home sales in October increased 2.2 percent over 2016 to 2,292 home sales.
Fueling this increase were county sales, with Travis County increasing 1.4 percent to 1,124 home sales, Williamson County increasing 5.4 percent to 794 home sales, and Hays County increasing 6.2 percent to 274 home sales. The city of Austin experienced a decline in home sales compared to last year, with a decrease of 1.7 percent to 699 home sales.
Home prices continued to rise across the area. The Austin-Round Rock MSA experienced a 4.3 percent increase in median home price, reaching $286,742. The city of Austin experienced a 9.1 percent increase in median home price, reaching $360,000.
“The Austin-Round Rock housing market continues to slightly outperform last year’s home sales activity, keeping 2017 on-pace for another record year for home sales,” said ABOR President Brandy Guthrie. “At the same time, low housing inventory levels along with constrained housing development activity throughout the city of Austin are preventing home sales growth at the city level.”
Inventory levels, while increasing, still remain very low, with inventory in the Austin area increasing 0.2 months to 2.8 months, and inventory in the city of Austin increasing 0.1 months to 2.3 months. A supply of about 6.5 months is considered balanced between sellers and buyers, according to the Real Estate Center at Texas A&M University. Inventory level increases have been driven partially by new construction, primarily in surrounding markets such as Pflugerville, Cedar Park, and Leander.
Metrostudy Austin Regional Director Vaike O’Grady said, “Shortages of vacant developed lots and regulatory hurdles in Austin make it difficult for meaningful housing development activity to occur within Austin’s city limits,” while “Developers and builders are beginning to experiment with lower-cost, higher-density products between $200,000 and $300,000 in suburban markets, where products like townhomes and smaller single-family homes can be built more easily.”
Austin-area October 2017 Sold Homes
- Number of sold homes: 2,292 (Up 2.2% compared to October 2016)
- Median sold price: $286,742 (Up 4.3% compared to October 2016)
- Days on the market: 55 (Up 3 days compared to October 2016)
Austin-area October 2017 Single-Family Homes on the Market
- New listings: 2,816 (Down 7.7% compared to October 2016)
- Active listings: 7,083 (Up 12.6% compared to October 2016)
- Pending sales: 2,542 (Up 13.8% compared to October 2016)