Austin-area home prices continue to soar.
In January, the median price of a home set a record at $240,00, according to a new report by the Austin Board of Realtors. People kept buying, though, providing an 11 percent increase in single-family home sales compared to January last year.
Of those 1,547 home sales in January, more than half were in the $200,000 to $500,000 price range. Meanwhile, 35 percent sold for less than $200,000, which is more typical for first-time and low-income homebuyers in the Austin area.
“While single-family homes will always be a part of Austin’s fabric, Austin’s city leaders should consider housing types that cost less to develop and can allow for a greater range of affordable infill options, such duplexes and small apartment buildings, in neighborhoods where they are needed most,” said 2015 ABoR President Barb Cooper.
January was the fifth consecutive month in which home sales increased. January’s 13 percent increase in median home prices was the fourth month in a row of double digit growth. It was the highest year-over-year home price increase since September 2013.
“With housing affordability already a challenge for many Austin residents, this increasing pace of home price growth is concerning. More than half of the homes sold in the Austin-area are now priced out of an affordable range for much of Austin’s workforce,” Cooper said.
The city’s housing inventory remains relatively low, with just 2.2 months of inventory in January. The Real Estate Center at Texas A&M University says 6.5 months of inventory is the ideal amount for a balanced housing market.
Austin-area monthly housing inventory was 2.2 months in January 2015, 0.2 months higher than January 2014 but still well below the 6.5-month inventory level the Real Estate Center at Texas A&M University cites as a balanced housing market.
“Housing inventory is rising, but the current pace is not enough to alleviate Austin’s affordability challenges,” Cooper said. “Furthermore, more homes on the market will not increase housing affordability if those homes are all priced for move-up homebuyers. Austin needs a regulatory environment that will ensure development of all housing types, priced in an affordable range for all Austin residents.”
The higher prices may be tempting some to sell. Active listings in January climbed by 9 percent to 5,005 listings. New listings increased just a bit to 2,360 compared to last January. Homes are still averaging 63 days on the market.
Meanwhile, condo and townhome sales cooled significantly at the start of the year, with just 135 sales — a 30 percent decrease compared to last year. The median price climbed by 4 percent to $218,250, and they spent an average of 48 days on the market.
Leasing remained fairly steady, climbing 2 percent to 1,279 new leases. The price, as one may expect, also climbed by 4 percent to $1,430.