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July 2015 Austin Real Estate Review

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Austin-area home sales hit all-time high, inventory levels rising in July 2015
Austin Board of REALTORS® releases real estate statistics for July 2015

 

AUSTIN, Texas – August 20, 2015 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), Austin-area home sales hit an all-time high, increasing 12 percent year-over-year to 3,149 sales for the month of July.

Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “We’re in the midst of one of the most active summer selling seasons to-date, with more single-family home sales than ever before. Home prices remain high, but inventory levels have increased steadily throughout 2015, perhaps taking a step toward a more balanced housing market.”

According to the report, the median price for Austin-area single-family homes increased eight percent year-over-year to $269,500 in July 2015, while average price increased six percent to $338,452 during the same time frame.

In July 2015, less than 30 percent of single-family homes sold in Central Texas were priced below $200,000, outside of an affordable range for many Austin-area homebuyers. The majority of pending sales and active listings fall outside of Austin’s city limits in surrounding areas like Cedar Park, Leander, Hays County, Round Rock and Pflugerville, showing that Central Texas residents are continuing to prioritize affordability.

Once again, total dollar volume topped $1 billion, reaching $1,065,785,348 and increasing 19 percent compared to July 2014.

New listings increased nine percent to 4,133 listings and active listings increased by five percent year-over-year to 7,174 listings, driving inventory levels up to three months for the first time since July 2014. However, Austin-area housing inventory is still well below the 6.5 month level, which the Real Estate Center at Texas A&M University cites as a balanced market.

Pending sales rose eight percent year-over-year to 2,873 listings and homes remained on the market for an average of 41 days, or two days more than July 2014.

Cooper concluded, “Mayor Adler recently called for 100,000 new housing units to be built by 2025 as a first step to untangling the city of Austin’s complicated permit review process and alleviating affordability issues in Austin. The Austin Board of REALTORS® sees this initiative as progress toward a more sustainable Central Texas housing market and will continue to work with city leaders to make Austin an affordable place to call home for all residents.”

 

July 2015 Statistics
3,149 – Single-family homes sold, 12 percent more than July 2014.

$269,500 – Median price for single-family homes, eight percent more than July 2014.

$338,452 – Average price for single-family homes, six percent more than July 2014.

41 – Average number of days single-family homes spent on the market, two days more than July 2014.

4,133 – New single-family home listings on the market, nine percent more than July 2014.

7,174 – Active single-family home listings on the market, five percent more than July 2014.

2,873 – Pending sales for single-family homes, eight percent more than July 2014.

3.0 – Months of inventory* of single-family homes, unchanged compared to July 2014.

$1,065,785,348 – Total dollar volume of single-family properties sold, 19 percent more than July 2014.

 

The following sections describe trends in other sectors of the Austin-area real estate market.

Townhouses & Condominiums
The volume of townhouses and condominiums (condos) purchased in the Austin area in July 2015 was 317, a four percent decrease from July 2014. The median price for condos was $224,850, which is 10 percent more than the same month of the prior year. When compared to July 2014, these properties spent 42 days on market, or five more days than July 2014.

Leasing
In July 2015, a total of 2,187 properties were leased in Austin, which is nine percent more than July 2014. The median price for Austin-area home leases was $1,550, three percent higher than in July 2014.

 

The Austin Board of REALTORS® (ABoR) builds connections through the use of technology, education and advocacy to strengthen the careers of its 11,000 members and improve the lives of Central Texas families. We empower Austin REALTORS® to connect their clients to the region’s most complete, accurate and up-to-date listings data. For more, contact the ABoR Department of Public Affairs at
marketing@abor.com or 512-454-7636. For the latest local housing market listings, visit AustinHomeSearch.com.

* The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

Source: Austin Board of Realtors®

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June 2015 Austin Real Estate Review

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Austin-area home sales top 3,000, $1 billion in volume in June 2015, prices remain high;
Mid-year results show 2015 on pace to exceed historical sales volume in 2014

June 2015 Statistics

• 3,051 – Single-family homes sold, 5% more than June 2014
• $272,250 – Median price for single-family homes, 8% more than June 2014
• $333,866 – Average price for single-family homes, 2% more than June 2014
• 42 – Average number of days single-family homes spent on the market, 3 days more than June 2014
• 3,812 – New single-family home listings on the market, 3% more than June 2014
• 6,701 – Active single-family home listings on the market, four percent more than June 2014
• 3,023 – Pending sales for single-family homes, eight percent more than June 2014
• 2.8 – Months of inventory of single-family homes, unchanged compared to June 2014
• $1,018,625,166 – Total dollar volume of single-family properties sold, eight percent more than June 2014

2015 Mid-Year Statistics

• 13,917 – Single-family homes sold, four percent more than the first half of 2014
• $263,000 – Median price for single-family homes, 10 percent more than the first half of 2014
• $331,765 – Average price for single-family homes, eight percent more than the first half of 2014
• 50 – Average number of days single-family homes spent on the market, three days more than the first half of 2014
• 19,865 – New single-family home listings on the market, three percent more than the first half of 2014
• 5,727 – Active single-family home listings on the market, eight percent more than the first half of 2014
• 15,984 – Pending sales for single-family homes, five percent more than the first half of 2014
• $4,617,178,959 – Total dollar volume of single-family properties sold, 12 percent more than the first half of 2014

According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), Austin-area home sales topped 3,000 sales for the first time since July 2013, increasing five percent year-over-year to 3,051 sales for the month of June. Mid-year statistics show that Austin-area home sales increased an average of four percent year-over-year to 13,917, putting 2015 on pace to potentially exceed 2014’s historical high in sales volume.

In June 2015, total dollar volume reached $1,018,625,166 and increased by eight percent compared to June 2014. Additionally, the total dollar volume of single-family properties sold in the first half of 2015 was $4,617,178,959, a year-over-year increase of 12 percent.

Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “June’s increased home sales, combined with total dollar volume exceeding $1 billion for the first time ever, shows the amazing equity Austin homeowners have in the market and the powerful impact of real estate in Central Texas. However, this increase heightens the need to replenish and expand housing stock to help achieve sustainable growth.”

According to the report, the median price for Austin-area single-family homes increased eight percent year-over-year to $272,250 in June 2015, while average price increased two percent to $333,866 during the same time frame. Keeping with the upward trend over the last several months, less than three in 10 single-family homes sold in the Austin area were priced below $200,000.

Price increases are similar for the first half of 2015, with median price increasing 10 percent to $263,000 and average price increasing eight percent to $331,765. At the same time, homes spent an average of 50 days on the market, three more days than the same time last year.

“If this growth continues, 2015 could become another historical year for Austin-area home sales. Both homebuyers and sellers can expect a strong, competitive market for the rest of the summer selling season,” said Cooper.

Active listings increased by four percent year-over-year to 6,701 listings in June 2015 and pending sales increased by eight percent to 3,023 compared to June 2014.

While new listings increased by three percent to 3,812 for June 2015, inventory held steady at 2.8 months, remaining well below the 6.5 month level the Real Estate Center at Texas A&M University estimates as a balanced housing market.

Cooper concluded, “While growth shows positive momentum for our city, ABoR supports solutions that serve the entire community, accommodate new populations and help residents find the homes they want. To help achieve these goals, ABoR and Austin REALTORS® recently met with members of the Austin City Council and Mayor Adler to discuss big picture issues affecting Central Texas residents and with a strong focus on sustainable and managed growth. We’re pleased to see the steps city leaders are taking toward a more affordable Austin.”

Source: Austin Board of Realtors

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May 2015 Austin Real Estate Review

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Austin-area home prices remain high, home sales decrease in May 2015

• 2,767 – Single-family homes sold, 2% less than May 2014
• $271,000 – Median price for single-family homes, 9% more than May 2014
• $348,201 – Average price for single-family homes, 7% more than May 2014
• 42 – Average number of days single-family homes spent on the market, 2 days more than May 2014
• 3,865 – New single-family home listings on the market, 3% less than May 2014
• 6,323 – Active single-family home listings on the market, 6% more than May 2014
• 2,936 – Pending sales for single-family homes, unchanged from May 2014
• 2.7 – Months of inventory of single-family homes, 0.1 months more than May 2014
• $963,472,167 – Total dollar volume of single-family properties sold, 5% more than May 2014

June 19, 2015 – After setting a record in April, single-family home sales dipped two percent to 2,767 home sales in May, according to the May 2015 Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®.

Single-family home prices remained high, both setting a record for the month of May and increasing at a rapid rate that is outpacing historical appreciation, which is typically four percent annually according tot he Real Estate Center at Texas A&M University. The majority of homes entering the market continue to be priced outside of an affordable price range for many residents, with only 25 percent of single family housing options in Central Texas below $200,000.

Barb Cooper, 2015 President of the Austin Board of REALTORS®, explained, “Affordability remains an issue across the region, identifying a need for Central Texas to address the “missing middle” with an influx of diverse housing stock.”

According to the report, the median price for Austin-area single-family homes increased nine percent year-over-year to $271,000 in May 2015, while average price increased seven percent to $348,201 during the same time frame.

New listings for single-family homes decreased three percent year-over-year to 3,865 listings, while active listings increased by six percent to 6,323 listings in May 2015. Pending sales remained unchanged at 2,936 pending sales compared to the same time frame last year.

A combination of a slight decrease in home sales and an increase in active listings caused inventory levels to rise in May 2015. Austin-area housing inventory increased 0.1 months year-over-year to 2.7 months in May 2015, a figure still well below the 6.5 month level the Real Estate Center at Texas A&M University estimates as a balanced housing market.

“Unfortunately, the majority of single-family homes can no longer be developed within the region in an affordable price range for most homebuyers. Creating conditions that allow for housing options for all of our residents, such as medium-scale housing options, will help increase housing affordability, improve the tax base and potentially provide income for homeowners,” said Cooper. “Equally important, this type of housing stock allows for greater density and helps residents to live close to where they work and go to school.”

Source: Austin Board of Realtors

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Texas Economy and Market Update

Briarcliff.lakeviewThe Austin Board of Realtors® welcomed Dr. James P. Gaines, a research economist, from Texas A&M University Real Estate Center to the Palmer Events Center on October 15th to discuss the Texas economy and give a real estate market update.

Although I was unable to attend this event, I did obtain Dr. Gaines’ presentation and thought you might be interested to review his findings.

As we have seen in the past few years, Texas and the Austin Housing Markets have continued to lead the country’s real estate market. There have been record highs for the last five years in Texas for median home prices and 2014 has seen a 5% increase in home sales, which makes it the second best year ever recorded.

The four reasons Dr. Gaines gave for the Texas economy doing better than other states are job gains, housing prices, general business growth and population growth.

I thought it was interesting to note that Texas has added 14 million people in the last 40 years and is expected to add another 30 million people in the next 40 years. Dr. Gaines claimed that with this exponential growth Dallas/Fort Worth, Houston and Austin populations will explode.

Obviously, the overall real estate market reflects the economic health of any area and Dr. Gaines gave his economic outlook for Texas, which included:

  • Downside risk is a national (global) recession, but even then, Texas may do better than most other states IF energy is strong
  • Energy sector subject to global actions – not as robust
  • High tech and business services fueling job growth
  • Job growth expected to stay relatively strong
  • Population expansion continues to fuel growth
  • Local growth issues becoming more pressing, causing greater strain on state and local resources
  • Local non-residential construction strong

Additionally, he mentioned that even though the past 20 years has seen a housing roller coaster due to monetary policy, political directives and capital market manipulation which then caused a boom-bust-boom scenario; Dr. Gaines believes that housing market is “returning” to fundamentals. These include:

  • Employment-income
  • Household formations
  • Affordability: Interest rates and financing

Dr. Gaines said his top housing issues are:

  • Sustainable price increases and Affordability
  • Mortgage interest rates
  • Construction & labor costs
  • Lot inventory for new construction
  • Mortgage market changes: loan limits; variable qualifying; closing costs
  • Higher “other” costs: taxes, insurance
  • Stronger rental market
  • Return to fundamentals: employment/income, household formations, affordability.

Dr. Gaines gave his Texas housing outlook, which included:

  • Percentage slowdown from past two years
  • Emphasis in new construction on high-end price range
  • Entry-level new homes difficult to finance; Gen-Y buyers most affected
  • Labor and lot inventory shortage across the state
  • Urban-central and suburban markets both strong
  • National and local regulations and controls becoming more stringent
  • Non-residential construction leads nation
  • Future Issues: flood insurance; affordability; EPA regulations on upland wetlands; local growth management efforts

Overall, the Austin and Texas economies are better than most and continue to have considerable potential. However, there will always be pros and cons to exceptional growth. Additionally, it would do us well to remember that there can be major changes due to unforeseen challenges and uncontrollable situations.

“It’s tough to make predictions, especially about the future.” Yogi Berra

Keep in mind that each of us has an opportunity to have our voice heard by the privilege of casting our vote. So, don’t forget to either vote early (ends October 31st) or vote on Election Day, which is November 4th!

If you or someone you know is interested in buying or selling real estate in the Austin area, please contact Mary Lynne Gibbs at 512.431.2403 or austinluxurybroker@gmail.com. It would be an honor to earn your business!