In November 2017, average Austin home price growth slowed throughout the region. Meanwhile, the number of home sales throughout the Austin-Round Rock Metropolitan Statistical Area (MSA) increased over last November. The slowdown in home price appreciation as home sales increase indicates that the Austin real estate market is continuing to stabilize. Home sales numbers are growing in areas where home prices are low and development is strong.
Austin Home Price Growth vs. Sales Volume
This November is the second month in a row where the number of homes sold in the City of Austin experienced a reduction while home sales numbers grew in the suburbs. Home sales in the City of Austin declined 3.3 percent to 653 home sales, while home sales in the Austin-Round Rock MSA increased 3.7 percent in November to 2,196 homes sold.
By county, single-family home sales volume jumped 10.2 percent in Williamson County to 778 homes sold. Hays County home sales jumped a healthy 14.3 percent to reach 280 homes. Travis County home sales volume declined due to the dip in City of Austin home sales. In Travis County, home sales volume dipped 1.3 percent year-over-year to 1,032.
Real Estate Demand Remains High
Home sales growth throughout the Austin-Round Rock MSA is attributed to the continued demand for housing throughout the area. In fact, Brandy Guthrie, 2017 President of the Austin Board of REALTORS® commented, “Due to rapid population growth throughout Central Texas, Austin continues to have one of the highest demands for housing in the nation.”
Additionally, Guthrie pointed out the factors contributing to ongoing home sales growth in Hays and Williamson Counties. “Homes sales are the strongest where price points are the lowest and where development options are available, such as parts of Williamson and Hays counties. We are seeing some slowing home price appreciation and housing inventory gains, which is normalizing us to a more stable market and aligning us with long-term historical market trends.”
Benefits of a Normalizing Market and Slower Price Growth
Indeed, normalizing market trends are a good sign of long-term strength. David Brodsky, broker/owner of David Brodsky Properties commented that the timing of the normalizing market is crucial. “A slowdown in home sales price growth is good news right now as housing affordability is at the forefront of the Austin real estate commentary. Austin real estate could benefit greatly from more moderate sales price growth.”
Although home sales prices continued to grow this November, the rate at which they increased slowed in comparison to previous years. The median sales price for single-family homes increased 2.9 percent year-over-year to $296,500 this November throughout the Austin-Round Rock MSA. In Williamson County, the median price for single-family homes showed no change from November 2016, remaining at $275,000 this November. In Hays County, median price increased 4.0 percent to $260,000. Travis County median sales price increased 6.1 percent to $341,000. In the city of Austin, the median price for single-family homes increased 6.8 percent year-over-year to $360,000.
Other Austin Area Real Estate Statistics
Here’s a look at housing inventory numbers throughout the region:
- Inventory increased 0.2 months to 2.5 months of inventory across the Austin-Round Rock MSA
- City of Austin inventory increased 0.1 months to 2.0 months of inventory in November
- Hays County inventory increased 0.2 months to 2.9 months
- Housing inventory reached 2.5 months in Travis County
- Inventory levels in Williamson County reached 2.4 months
Finally, both pending sales and active listings statistics for the region indicate that home sales growth could continue through the end of the year. If that happens, the Austin-Round Rock MSA could set yet another real estate sales record for the year. This November, active listings for area increased 13.7 percent to 6,391 listings and pending sales jumped 14.9 percent to 2,340.
For more information on the Austin real estate market, reach out to David Brodsky Properties. An Austin real estate strategist will be happy to talk to you about how you can achieve your real estate goals in the Austin area. Our consultation is free and is invaluable in helping you reach your 2018 real estate goals.
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