This October, Austin home sales smashed its previous record for the number of homes sold, while the number of active listings dropped and housing inventory declined. Another month of sharp increases in housing sales and price appreciation have prompted Austin real estate industry leaders to call for faster reforms to the current land use codes. According to the Austin Board of REALTORS® (ABoR) latest market report, Austin is in dire need of solutions for increased housing density.
“Austin has seen explosive population growth in recent years, which has led to skyrocketing demand for housing,” explained David Brodsky, broker/owner of David Brodsky Properties. “While these things point to a thriving economy and excellent job growth, City leaders have been challenged to enact solutions to accommodate more than a hundred people moving to the area every day.”
While Austin struggles to update its existing land-use code, developers have been hard at work to keep up with demand. In the third quarter of this year, housing construction in Central Texas hit record highs. A report from Metrostudy, a firm that tracks home starts in the five-county Austin region from Georgetown to San Marcos, reported there were 5,610 homes starts from July through September. The number of home starts is an all-time quarterly high and a 26% increase from the same quarter last year. The previous peak was in the third quarter of 2006, Metrostudy said.
In the areas surrounding Austin, the report looks very similar. However, more available and less expensive land has enabled developers to build housing stock at lower prices to consumers. In the City of Austin, the median home price hit $405,000 this October, which is the highest for any October on record. In contrast, the median price for a single-family home in Bastrop County reached $249,000 this October.
“Despite the reaction that the City of Austin real estate numbers can create, there are still really great opportunities to be found in and around Austin,” explained Brodsky. “Homebuyers need to be savvy enough to work with an experienced Austin area real estate agent. And sellers are likely to find that selling their home will be a much more successful experience if they work with a trusted real estate consultant.”
Brodsky also makes a point to inform would-be homebuyers that buying in the Austin area is likely a sound purchase based on projected home equity growth.
“The Austin area housing market is stronger than ever. Based on economic and housing data, real estate is expected to continue to strengthen over the coming years. For buyers, making an Austin area home purchase means making an investment in a strong market that is likely to see steady equity growth.”
In Travis County, where the City of Austin resides, home sales and sales dollar volume increased in October while active listings and housing inventory declined. Pending sales showed a significant increase, highlighting the possibility for another strong month of home sales in the city for November.
- Travis County single-family home sales jumped by 20.8% to 1,403 sales
- Sales dollar volume skyrocketed by 27.8% to $667,953,401
- The median price for single-family homes rose 9.1% year over year to $385,000
- New listings increased 4.7% to 1,473 listings
- Active listings decreased 16.6% to 2,743 listings
- Pending sales increased by 18.9% to 1,325 sales
- Monthly housing inventory decreased 0.5 months year over year to 2.1 months of inventory
Like Travis County, Williamson County home sales and sales dollar volume increased in October. The median price of a single-family home made modest gains. Pending sales made a jaw-dropping increase and inventory are lower than it was the same time last year.
- Single-family home sales rose 14.3% to 888 sales
- Sales dollar volume experienced a double-digit increase of 19.7% to $286,068,265
- The median price for single-family homes increased by 4.2% to $295,000
- New listings increased 10.8% to 1,066 listings while active listings decreased 13.2% to 2,250 listings
- Pending sales spiked 29.6% to 1,046 pending sales
- Housing inventory declined 0.6 months year over year to 2.3 months of inventory
In October, Hays County single-family home sales made a double-digit increase. Pending sales jumped over 30% and housing inventory dipped below 3 months.
- Single-family home sales increased by 11% to 312 sales
- Sales dollar volume increased 9.6% to $100,655,239
- The median price for a single-family home increased by 7.1% to $266,000
- New listings increased 6.6% to 372 listings
- Pending sales jumped 31.2% to 345 sales
- Active listings dropped 5.2% to 931 listings
- Housing inventory decreased 0.4 months to 2.9 months of inventory
Although fewer than 100 homes were sold in Bastrop County in October, the area experienced modest home sales growth while sales dollar volume made a double-digit increase. The median home price for single-family homes also made a double-digit increase, while housing inventory increased nominally.
- Bastrop County single-family home sales increased by 4.9% to 86 sales
- Sales dollar volume increased 11.5% to $23,162,486
- The median price for a single-family home increased by 14.1% to $249,900
- New listings spiked 29.8% to 122 listings
- Active listings rose 14.3% to 352 listings
- Pending sales skyrocketed 40% to 119 pending sales
- Housing inventory increased 0.1 months to 3.8 months of inventory
There were 32 homes sold in Caldwell County in October, marking a double-digit increase in single-family home sales in the area. Sales dollar volume also spiked and new listings shot up nearly 90%.
- Single-family home sales jumped 14.3% to 32 sales
- Sales dollar volume spiked 19% to $6,748,695
- The median home price increased 0.9% year over year to $193,050
- New listings skyrocketed 88.9% to 34 listings
- Active listings increased 15.4% to 105 listings
- Pending sales sharply increased by 47.6% to 31 pending sales
- Housing inventory rose 0.7 months to 4.3 months of inventory
Reach out to David Brodsky Properties for a more in-depth report on home sales in your neighborhood.
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