Blame it on the rain? No, more likely it was the soaring price of Austin area homes that led to a slight decrease in home sales in May.
Only a quarter of the single-family homes in the area were priced below the $200,000 mark in May, according to the Austin Board of Realtors. And it’s part of a bigger trend that has Austin’s home prices outpacing historical appreciation, which is usually 4%.
Compared to last May, single-family home sales slowed by 2%, with 2,767 recorded sales. That follows a record-setting pace of sales in April.
“Unfortunately, the majority of single-family homes can no longer be developed within the region in an affordable price range for most homebuyers,” said Barb Cooper, 2015 president of the Austin Board of Realtors. “Creating conditions that allow for housing options for all of our residents, such as the medium-scale housing options, will help increase housing affordability, improve the tax base and potentially provide income for homeowners. 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.”
The median price of an Austin-area home climbed to $271,000, a 9% increase from last May. Meanwhile, the average price increased 7% to $384,200, the report showed.
With home listings decreasing 3 percent compared to last May and active listings climbing by 6%, inventory levels rose slightly in May 2015. But it was a tiny jump of 0.1 months, bringing Austin’s inventory to 2.7 months.
The Real Estate Center at Texas A&M University estimates that 6.5 month’s-worth of inventory is required to create a balanced housing market.
Condos Sales Slump and Home Lease Prices Climb
People who are looking for a home to lease are finding that prices continue to increase in the Austin area, reflecting the ever-rising cost of homes. In May, 1,569 leases were signed, a 7% increase compared to the year prior. Meanwhile, the median price of a lease climbed by 7%, hitting $1,600.
And, remember, these prices reflect the entire Austin area, including many of the suburbs where prices are lower and the most real estate activity is taking place.
Condo sales, meanwhile, decreased by 15 percent in May 2015. But their median price, now at $231,000, was 8% more than the median price in May 2014.
Overall, the report showed $963 million in recorded property sales in May.
