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Third Quarter Shows Home Price Increases and Slight Dip in Sales

published on November 17, 2016

Austin homes for saleAustin-area

Single-family home prices in the Austin-Round Rock area were up 7.7 percent to $279,900 in the third quarter of 2016, according to the Texas Association of Realtors®’ Texas Quarterly Housing Report. The number of single-family homes sold was down one percent compared to the third quarter of 2015, to 9,249 sales.

Of the homes that sold, 19.98 percent were $199,999 or less, 65.78 percent were between $200,000 and $499,999, and 14.24 percent were over $500,000. Previous reports have attributed the slowdown in sales in the Austin market to tight inventory supply and higher prices, which are leading buyers to the small cities around Austin.

The number of active listings was up 12.4 percent to 7,579. There was an inventory supply of 2.8 months, compared to 2.6 months in the third quarter of 2015. Homes were on the market 44 days, one more day than in the third quarter of 2015.

Texas

Statewide, home sales were up 0.2 percent to 91,248 homes sold in the third quarter of 2016. Median price increased seven percent to $214,000. Home inventory rose 0.1 months to 3.9 months of inventory. Active listings rose 4.2 percent to 103,109 listings. Homes listed for sale in Texas were on the market an average of 53 days, one more day than in the third quarter of 2015.

“Given the recent slowdown in the Texas economy, the performance of the Texas housing market in the third quarter is remarkable,” said Real Estate Center at Texas A&M University Chief Economist Dr. Jim Gaines. “The demand for housing in Texas continues to exceed supply, driving home prices upward. We just haven’t been building homes fast enough, and the rising land and development costs have made it difficult to build new homes at lower price points.”

Texas Association of REALTORS® Chairman Leslie Rouda Smith added, “Texas home sales in 2016 continue to edge out last year’s record-breaking sales volume, and in many local markets, growth is still very strong.”