Austin Home Sales Set New Record as Real Estate Prices Climb

If you’re looking for further evidence of Austin’s booming real estate market, just take a glance back at October.

Home sales increased 16 percent compared to October 2013, setting a record for year-over-year growth and hitting an all-time high for home sales during the month.

The 2,403 single-family home sales had a median price of $240,000 and an average price of $311,028, representing an 11 percent year-over-year increase.

That also set a record — the biggest median and average price point jump ever.

The $747.4 million in total single-family properties sold in October 2014 marks a 29 percent increase compared to the same month last year.

“It’s always exciting to see a record-breaking month in real estate, but let’s remember that high demand often leads to high prices,” said Bill Evans, 2014 President of the Austin Board of REALTORS. “For example, this month’s results show that it costs a typical homeowner $23,000 more to buy a home than one year ago.”

That means some people will have to look for smaller homes, look further outside the Austin area or renting, he said.

Homes are still selling quickly, spending an average of 50 days on the market in October 2014. But that’s two days longer than last October, and it was the first time since August 2011 where the average days on market increased on a year-over-year basis.

October 2014’s 6,170 listings equated to an 11 percent year-over-year increase, as did the number of new listings — 2,850. ABoR said the growth in listings had a positive effect on pending sales, which grew by 9 percent compared to last October.

Inventory remains low, increasing .2 months to 2.7 months in October 2014. That’s still far below the 6.5 months balanced housing inventory recommended by the Real Estate Center at Texas A&M University.

“The additional housing inventory is encouraging, but we’ve got a long way to go before homeownership options and availability meet demand in our city,” Evans said. “To get us there, we need a regulatory environment that supports all types of affordable housing options.”

Townhouse and condo sales decreased by 3 percent in October 2014. The median price grew by 8 percent to $225,000. Those properties spent an average of 47 days on the market — same as last October.

Leasing increased 17 percent compared to last October, and the median rent climbed 5 percent to $1,450.