The Austin area may once again have a record setting year in 2017. But it could be a close call as the pace of sales inside Austin’s city continues to slow.
Single-family home sales inside Austin declined by 3.3 percent compared to November of last year, the Austin Board of Realtors said. Meanwhile, sales across the entire Central Texas region, which includes Travis, Hays and Williamson counties, increased by 3.7 percent.
The rising cost of homes inside Austin’s city limits — up 6.8 percent year-over-year to $360,000 — appears to be causing the market to cool slightly after several years of rapid growth.
Inbound Migration Continues to Drive Demand
“Due to rapid population growth throughout Central Texas, Austin continues to have one of the highest demands for housing in the nation,” Brandy Guthrie, 2017 President of the Austin Board of Realtors, said. “Homes sales are the strongest where price points are the lowest and where development options are available, such as parts of Williamson and Hays counties. We are seeing some slowing home price appreciation and housing inventory gains, which is normalizing us to a more stable market and aligning us with long-term historical market trends.”
Looked at through a different lens, the climbing prices are even more pronounced. In the last 12 months, the average price of a home in Austin has climbed to $371,278. That’s up from $353,919 during the 2016 calendar year.
Steady as She Goes for 2018
Meanwhile, homes are spending just a little more time on the market. In 2016, the average home was on the market for 50 days. That has climbed to 53 days during the last 12 months.
Sales and listings, however, remain strong. And the Austin area is poised to set another record this year — so long as December sales top last year’s. And 2018 looks like it will be a solid year for home sales once again, with several potential caveats that could disrupt the otherwise positive growth trends.
“The 2018 Austin-area housing market will be a lot like this year’s housing market – slower, but still very strong housing market activity,” said Mark Sprague, State Director of Information Capital for Independence Title. “However, there are multiple economic factors to watch out for going into next year. Slowing job growth in Central Texas, the impact of Hurricane Harvey on the price of building materials and housing development costs, and the overhaul of the U.S. tax plan are all factors that could hinder housing market growth and negatively impact housing affordability in the Austin area in 2018.”
Here’s a look at other metro area stats from November 2017 and percentage increase or decrease from last November:
- Median Price for Single-Family Homes in the Austin Area — $296,500 +0.76%
- Single-Family Homes Sold in the Austin Area — 2,196 +6.42%
- Average Number of Days on the Market — 61 +11.48
- Total Dollar Volume of Homes Sold in the Area — $803.8M +4.33%
- Months of Housing Inventory Available — 2.5 +8%
- New Listings — 2,377 +11.15%
- Active Listings — 6,391 +12.02%
- Pending Sales — 2,340 +8.08%