Experts with the Real Estate Center at Texas A&M University say that single family home sales will slow in 2019 and then bounce back in 2020. “This cooling period is necessary after multiple years of explosive growth, allowing the market to adjust in areas of extreme shortages and rapid affordability declines,” a release stated. Median price per square foot still is expected to increase by about four percent in major Texas cities.
In 2018, sales in the Texas housing market increased 1.7 percent. While a modest increase, home sales reached a record number. The report cited low inventory and decreasing affordability for the lessened rate of increase. And, while there was more construction activity, a shortage of homes under $300k stressed “more than two-thirds of the statewide market.”
In Austin, housing permits were estimated to be up 9.6 percent in 2018. The report forecasts a 0.2 increase in Austin housing permits in 2019 and a 1.3 percent increase in 2020. Austin started more than 16,200 homes in 2018.
Home sales were estimated to be up 2.3 percent in Austin in 2018. The report forecasts a 2.8 percent increase in Austin home sales in 2019 and a three percent increase in 2020.
Price per square foot was estimated to be up 4.5 percent in Austin in 2018. Price per square foot in Austin is forecast to increase four percent in 2019 and 5.8 percent in 2020.
As far as 2018 home sales in major Texas cities, home sales increased in Houston, San Antonio, and Austin, while home sales decreased in Dallas and Fort Worth. Austin still leads the pack in median home price with a median of $304,900, followed by Dallas at $284,770.