Demand for homes in the Austin area continued to increase in March, according to new data from the Austin Board of Realtors.
The metro area set a record for the number of homes sold in the month of March as the inventory of available homes fell and the price of those remaining climbed. Overall, the metro area saw a 10.5 percent increase in homes sold in March, compared to the same month last year.
That likely foreshadows a highly active summer season for buyers and sellers, said Steve Crorey, president of the Austin Board of Realtors.
Rising prices will continue to play a role. In March, the median price of a single-family home in the Austin metro climbed 3.5 percent to $305,233.
In recent months, homes inside Austin city limits have been relatively flat as prices increase rapidly and housing inventories fail to keep up with demand. But, in March, home sales increased by 8.5 percent year-over-year to 831 sales. Meanwhile, median prices increased only a tenth of a percent.
Looked at from a different perspective, the average sales price of a home in Austin has increased from $353,919 in 2016 to $376,350 in the most recent 12 months. Meanwhile, the number of homes sold climbed from 29,805 in 2016 to 31,009 in the past 12 months.
But the inventory of available homes remains low, which is likely to lead to an increase in median sales prices.
“Historically, it’s common for some homes to be on the market for 50 days or more, even in markets with strong housing demand,” Crorey said. “Within the city of Austin and other local markets with limited inventory, homes are spending a fraction of time on the market—as little as two weeks in some areas. This is an indicator of just how competitive it’s become to purchase a home in and around Austin.”
Meanwhile, climbing prices in Austin have led many buyers to seek more affordable options in the city’s suburbs.
“Demand for homes priced below $250,000 is driving the emergence of new submarkets like Manor and Del Valle, where builders can construct homes at a lower cost,” Vaike O’Grady, Austin regional director for Metrostudy, said. “We’re also seeing creative land plans that provide common area open space to offset smaller lot and home sizes. Attached single-family homes are also coming to the market to meet buyer demand for more affordable housing.”
Manor’s home sales climbed to 41 in March, a 6.5 percent year-over-year increase.
Here are additional Austin metro area home sales stats from March 2018.
- Median Price for Single-Family Homes in the Austin Area — $305,233
Single-Family Homes Sold in the Austin Area — 2,714
Average Number of Days on the Market — 61
Total Dollar Volume of Homes Sold in the Area — $1.1 billion
Months of Housing Inventory Available — 2.2
New Listings — 4,008
Active Listings — 5,640
Pending Sales — 3,049