Austin area home prices continued a steady upward climb in January. But the pace of sales, for the first time in months, slowed down just a bit.
Single-family home sales decreased by 2 percent in January, compared to the same month a year prior, according to the Austin Board of Realtors. The year typically starts a little slow for residential home sales. But January’s decrease is the first in months, and it follows an entire year in which the Austin metro area saw an overall 5 percent increase in the number of homes sold at a time when average prices climbed by 10 percent.
This new slight slowdown in sales could be the result of the climbing prices, as well as the steady demand being driven by a local strong economy and a relatively low number of homes available.
“Inventory has fallen below three months for three years and while we’ve seen this affect home prices for months, it’s possible that we’re now seeing it affect home sales,” said Aaron Farmer, the 2016 president of the Austin Board of Realtors.
Farmer said there are several business and civic leaders trying to make a meaningful impact on housing affordability in Austin. For example, he said that Terry Mitchell, president of Momark Development, is working on housing projects that provide subsidized expenses for families making less than 80 percent of the area’s median family income.
“We all know someone – our children, parents, our children’s teachers and friends – who are affected by the affordability issues in Austin,” Mitchell said. “The lack of affordability is affecting transportation, economic development and literally the future of our city. There are solutions, but they require a clear vision and a willingness to change.”
Meanwhile, the city council has been debating several affordable housing projects that could provide options for families feeling pinched out by the area’s rising prices. One plan is diverting tax revenues from the properties the city previously owned to a housing trust fund that will help finance affordable housing projects.
“If we’re going to successfully address our city’s continued affordability issues, we all need to work together,” Farmer said. “We’re excited that several business owners and community leaders are stepping up and bringing new, tangible solutions to the table to help alleviate some of the challenges.”
Here’s a look at the rest of the Austin area’s housing stats for January:
- 1,459 – Single-family homes sold, 1.9 percent less than January 2015.
- $254,999 – Median price for single-family homes, 6.3 percent more than January 2015.
- $322,620 – Average price for single-family homes, 3.8 percent more than January 2015.
- 56 – Average number of days single-family homes spent on the market, seven days less than January 2015.
- 2,399 – New single-family home listings on the market, 8.0 percent more than January 2015.
- 4,751 – Active single-family home listings on the market, 11.4 percent more than January 2015.
- 2,207 – Pending sales for single-family homes, 16.6 percent more than January 2015.
- 2.0 – Months of inventory* of single-family homes, 0.1 months more than January 2015.
- $470,702,965 – Total dollar volume of single-family properties sold, 1.9 percent more than January 2015.
