Demand Outpaces Supply as Austin Home Sales Soar
Home sales statistics in the Austin area are continuing to soar as people from around the country relocate to the capital city to take advantage of plentiful jobs, a higher-than-average median income and lower cost of living. Austin’s ever-expanding population has created outrageous demand for housing, keeping home sales numbers high and pushing up the median sales price. Numbers from the regional Multiple Listing Service (MLS) released by the Austin Board of REALTORS® (ABoR) show that Austin-area single family home sales were up 9.3 percent to 2,552 in March 2016 compared to the same month the year prior. Median home prices are also up 7.8 percent year-over-year, reaching $278,000 this past March.
Low inventory continues to be a major factor in the escalating market statistics, with Austin-area monthly housing inventory at 2.0 months in March 2016, which is down 0.2 months from March the previous year. Inventory statistics show the market is still well below the 6.5 month level of inventory the Real Estate Center at Texas A&M University estimates as a balanced housing market. Homes in the area took an average of 54 days to sell in March 2016, unchanged from the year prior.
Despite the decrease in months of inventory reflected in the recent statistics, more new homes have been listed this past March compared to March 2015. In fact, new listings increased by 12.2 percent to 3,633 listings. Active listings – the number of homes that have been on the market for some days versus a new listing which has recently become available – increased 1.5 percent year-over-year to 4,669 listings in March 2016. During the same time frame, pending sales increased 7.2 percent to 2,811 sales.
Judging by the statistics of new and active listings, along with the data on sales and pending sales, it appears that ever-increasing demand for Austin homes for sale is still outpacing the supply of new housing reaching the market. A recent report from real estate data firm Metrostudy reported that housing starts are up a whopping forty percent in the first quarter of 2016 compared to the same time frame in 2015. Responding to increased demand for affordable housing, builders have been focused on homes in the $200K – $300K price range, with most of that inventory being built in the submarkets of Kyle and Buda, Hutto, Pflugerville, west Cedar Park/Leander, and Manor, according to Steve Plevak, regional director of Metrostudy’s Austin office.
March 2016 Austin Area Real Estate Statistics
- 2,552 – Single-family homes sold, 9.3 percent more than March 2015.
- $278,000 – Median price for single-family homes, 7.8 percent more than March 2015.
- $347,734 – Average price for single-family homes, 4.5 percent more than March 2015.
- 54 – Average number of days single-family homes spent on the market, unchanged compared to March 2015.
- 3,633 – New single-family home listings on the market, 12.2 percent more than March 2015.
- 4,669 – Active single-family home listings on the market, 1.5 percent more than March 2015.
- 2,811 – Pending sales for single-family homes, 7.2 percent more than March 2015.
- 2.0 – Months of inventory* of single-family homes, 0.2 months less than March 2015.
- $887,419,074 – Total dollar volume of single-family properties sold, 14.1 percent more than March 2015.