The Struggle is Real – July Home Prices Soar as Demand Stays Strong

Real Estate Agent with E*Rae Realty 651873
The July market report just released from the Austin Board of REALTORS® reveals a steady increase in sales volume and increasing prices across the greater Austin area.  In both the City of Austin and the entire Austin-Round Rock MSA, median home sales price figures reached all-time highs last month.  Within the city limits, the median single family home price rose to $390,000.  In the greater Austin area, that figure reached $320,000.
According to Vaike O’Grady, Austin regional director for Metrostudy, “Housing construction is at an all-time high in Central Texas.”  However, even with the steady influx of new homes, we’re still facing a major housing shortage in the Austin area.  A balanced market shows a six month supply of housing inventory. I honestly can’t remember the last time we even came close to that amount.  Last month, the housing inventory decreased to 2.1 months within the City of Austin.
The struggle to create more housing in Austin is similar to the fight against congestion on our highways.  We add more lanes hoping to alleviate traffic and by the time the new lanes are completed the number of cars has increased so that the efforts are essentially futile.  We build more homes, but then there are more buyers either moving to Austin or simply entering the market for the first time after renting. 
As land prices become less and less affordable, so too do new homes.  Coupled with cumbersome regulations and lengthy processes through an inundated city office it’s easy to see why new home supply continues to fall short of buyer demand.
In short, if you’ve been on the fence about selling your home, there’s no better time to sell than now.  The universal rules of supply and demand show that sellers certainly still have the upper hand in Austin.  Contact me today to see what your home is worth or click here for a free home value estimate.
Feeling discouraged as a prospective home buyer?  Obviously, the market is tough for buyers right now.  However, you must also consider that interest rates are rising with no signs of slowing down either.  Your home purchasing power today is likely greater today than in it will be next month.  Interest rates are up about one-half percent since last year. For every .5% percent increase in interest rate your purchasing power may be decreased by 4 to 5 percent (the percentage is smaller for lower loan amounts). Click here to view all homes for sale in the Austin area.  
This post originally appeared on
Posted by
Erika Rae Albert 
Broker, Realtor®, GRI
108 Wild Basin Road South Suite 250
Austin, TX 78746
t: 512-779-7597
e: Facebook icon   LinkedIn icon   Twitter icon   Instagram icon



This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Real Estate Market Trends
Texas Travis County Austin
austin real estate market
austin home sales
median home sales price austin
july austin home sales

Spam prevention
Show All Comments
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

No real relief is in sight for many people looking to buy a home

Aug 20, 2018 10:03 AM #1
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Austin has got to be one of the strongest markets right now!

Aug 20, 2018 12:57 PM #2
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?