For the first time in 5 years, the City of Austin has seen in a dip in June home sales, according to data from the most recent Austin real estate market report provided by the Austin Board of REALTORS®. Although this may be taken by some as an early sign of Austin real estate apocalypse, savvy real estate professionals and consumers alike recognize the home sales dip as a sign of a normalizing market. More importantly for would-be home buyers and sellers is the increasingly urgent need to enlist the professional services of an experienced Austin area real estate agent due to the increasingly competitive nature of the local market.
“A decline in sales activity across the region in June is not a sign of a market decline,” said David Brodsky, broker/owner of David Brodsky Properties, a premier Austin real estate brokerage. “While the Austin area real estate market is still a sellers’ market, buyers are becoming more discerning while inventory continues to lag behind demand,” explained Brodsky. “Although there is still an abundance of buyers in the market, there is an increasing number of homes that buyers don’t find desirable. As a result, current homebuyers are waiting for more homes to become available for sale or opting for a new-build, which often takes longer to close,” said Brodsky.
Despite the dip in home sales activity in June, the 2018 Austin real estate outlook is still strong. In fact, this year is expected to be another record-breaking one for the local real estate market. The first half of the year provided a strong start for Austin area real estate, which has bolstered overall sales statistics for 2018. Local job market and population growth indicate that housing demand will continue to remain strong for at least the rest of the year.
Steve Crorey, 2018 president of the Austin Board of REALTORS®, explained the phenomenon. “Consecutive years of record-breaking sales activity have set the bar incredibly high, and it’s important to remember that we’re comparing June 2018 figures to that strong activity. The Central Texas housing market remains strong and continues to move at a demanding pace.”
High housing demand is keeping inventory levels low, as seen in the overall decrease in housing inventory across the Austin-Round Rock Metropolitan Statistical Area (MSA) despite a dip in home sales in June. However, buyers aren’t necessarily willing to compromise their Austin area dream home to get into a new house. For this reason, it’s become more important than ever for homeowners to enlist the services of an experienced Austin area real estate agent to consult with them on their home sale.
“It’s critical for homeowners who are preparing to sell their home to know that while there are many buyers out there right now, not all homes are considered desirable real estate products,” said Brodsky. His experience as a Chief Financial Officer for Fortune 500 companies positions him and the agents that he has trained at his boutique real estate brokerage as some of the strongest seller strategists in the Austin area.
“An expert listing agent will be able to help a homeowner develop the best investment-minded strategy to prepare their home for sale,” he explained. “It’s not about how much money you spend preparing your home for the market, it’s about if you should spend and where you spend it in order to maximize the return on your investment.”
Austin-Round Rock Metropolitan Statistical Area (MSA)
Between January and June this year, single-family home sales increased 3.7 percent year-over-year to 15,364 home sales. Median home price increased 4.3 percent year-over-year to $313,000. Active listings dipped 0.8 percent to 5,951 listings during the same time frame, and new listings decreased 0.6 percent to 21,795 listings. Pending sales rose 4.8 percent to 17,008 sales. In the first half of the year, sales dollar volume in the Austin-Round Rock MSA was $6,025,035,605, representing an 8.2 percent increase from the first six months of 2017.
This June, single-family home sales activity dropped 2.7 percent year-over-year to 3,299 sales. The median price for a single-family home rose 4.9 percent year-over-year to $326,250 in June. Juxtaposed to the decline in home sales, monthly housing inventory decreased 0.1 months year-over-year to 2.9 months. The Real Estate Center of Texas A&M University has established a benchmark of 6.0 months as a balanced housing market. Jim Gaines, the chief economist at the Real Estate Center at Texas A&M University, supports Brodsky’s assertion that the market is moderating.
“The Central Texas housing market is among the top three in the country. The region’s population growth, particularly along the I-35 corridor, is fueled by diversified economic opportunities that bring jobs, new businesses, and resources across multiple industries,” said Gaines. “Strong population growth and home sales activity are expected to continue in the Central Texas region for the rest of the year and into 2019.”
City of Austin
In the first half of 2018, single-family home sales made a 1.3 percent year-over-year increase to 4,757 sales in the City of Austin. The median price for a single-family home increased 3 percent to $375,760. During the same period, active listings decreased 10.1 percent to 1,279 listings. New listings decreased 3.9 percent to 6,458 listings and pending sales rose 2.7 percent to 5,248 sales.
In June, Austin home sales decreased 4.5 percent to 988 home sales and median price dipped 0.4 percent to $388,000. Housing inventory also decreased by 0.3 months to 2.1 months. Homes sold faster this June, spending six fewer days on the market in 2018 than the previous June, averaging 30 days on the market.
Travis County single-family home sales increased 3.8 percent year-over-year to 7,675 home sales in the first half of the year. The median price for single-family homes grew 3.6 percent to $362,500 during the same time frame. Active listings decreased 6.1 percent to 2,796 listings, while new listings decreased 1.2 percent to 10,977 listings. Pending Travis County home sales increased 6 percent to 8,587 sales.
In June 2018, single-family home sales decreased 2 percent to 1,651 home sales, while the median price increased 1.2 percent to $374,500. Monthly housing inventory decreased 0.2 months to 2.8 months of inventory.
In the first half of the year, single-family home sales increased 5.2 percent year-over-year to 5,333 home sales throughout Williamson County. The median price for single-family homes increased 3.7 percent to $286,900 during that time. Active listings increased 5.2 percent to 2,033 listings and new listings decreased 0.8 percent to 7,303 listings. Pending sales rose 4.7 percent to 5,832 sales.
This June, single-family homes sales dipped 1.7 percent year-over-year to 1,143 sales in Williamson County, while the median price rose 4.7 percent to $300,000. During the same time frame, housing inventory declined 0.1 months to 2.8 months of inventory.
In the first half of 2018, Hays County single-family home sales rose 2.6 percent year-over-year to 1,721 home sales. Median sales price increased 3.3 percent year-over-year to $264,900. New listings increased 2.2 percent to 2,536 listings and active listings increased 1.9 percent year-over-year to 799 listings. During the same time frame, pending sales rose 4.4 percent to 1,907 sales.
In June 2018, single-family home sales decreased 7.1 percent year-over-year to 369 sales, while the median price increased 7.5 percent year-over-year to $284,900. During the same time frame, housing inventory increased 0.1 months to 3.4 months of inventory.
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