The October 2017 Central Texas housing Market report was released on November 14, 2017 by the Austin Board of Realtors®. Single-family home sales increased across the Austin-Round Rock Metropolitan Statistical Area (MSA) in October. It was interesting to note sales declined in the City of Austin.
I think Brandy Guthrie’s (2017 President of the Austin Board of Realtors®) statement is right on target for the real estate activity in October 2017 in Austin. “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. At the same time, low inventory levels along with constrained housing development activity throughout the city of Austin are preventing home sales growth at the city level.”
Some are concerned we are not outpacing growth by significant levels but we can’t continue to grow by leaps and bounds with the lack of our infra structure and city codes which inhibit building. The CodeNext proposal on the table could further inhibit growth so the City selection of a new city manager will impact the direction of our region’s future and sustainability of Austin’s housing market. Guthrie’s statement “Austin deserves a city manager who isn’t afraid to tackle the issues impeding our city’s development with bold strategies and creative solutions” is an important one. We all need to stay on top of how this secretive selection is being handled and voice our opinion in the selection process.
In the Austin-Round Rock MSA, single family homes increased 2.2% to 2,292 home sales from October 2016. In the city of Austin home October sales declined 1.7% to 699 homes compared to last year. The total sales volume of $846,439,642 is 5.7% more than in October 2016. The city of Austin is nowhere near the grim predicament Californians find themselves in but concerning signs emerging are a drop in sales of 1.7% and increase of median price of 9.1% in the city is not healthy!
The median price for single-family homes increased 4.3% to $286,742 across the Austin-Round Rock MSA and increased 9.1% to $360,000 in the city of Austin in October. Regulatory hurdles in Austin and shortages of vacant developed lots make it difficult for housing development to occur with Austin city limits.
Inventory inched ever so slightly upward. In the Austin- Round Rock MSA inventory increased 0.2% to 2.8% of inventory. In the city of Austin single-family housing inventory increased 0.1 months to 2.3 months of inventory. We are still well into a seller’s market across the region compared to the Real Estate Center at Texas A & M University’s estimation of 6.00-6.5 months of inventory as a balanced housing market.
It’s interesting to note the 55 days on market only increased 3 more days from October 2016. 7,083 active listings on market for October 2017 is 12.6% more than October 2016. The good news is 2,542 pending sales for single family homes is 13.8% more than October 2016.
The Austin population is still exploding. The future of job expansion/job growth in the Austin area will strongly lie in the field of heath care. The dollar volume of sales is up and Inventory is increasing but homes under contract are keeping pace and surpassing the inventory. Good steady growth is always the best kind. 2017 continues to be a record setting year in homes sales! With our pending properties we should end the year with a strong numbers.
Are you planning on visiting Austin? I know you will love our city, so if you are thinking of making Austin home, Let’s talk! Remember hiring the right Austin Realtor® is critical to your home buying success!! If you live in Austin and are considering a move I can help. If you have a home to sell I bring a high-tech touch to home sales and market your home to millions of customers across the internet and right here in Austin. Reach out to me at 512-346-1799 or email@example.com for an insightful conversation about our real estate market.