The Central Texas summer selling season ended on a strong note in August 2016, with annual gains in both single-family home sales and prices, according to the August 2016 Central Texas Housing Market Report released today by the Austin Board of REALTORS®.
Aaron Farmer, 2016 President of the Austin Board of REALTORS® said, “Austin, and now the Central Texas region at large, continues to be a magnet for jobs and new businesses across multiple industries. This continues to keep housing demand at an all-time high and inventory at near-record lows despite strong housing development and a greater number of listings on the market.”
Single-family home sales rose 5.3 percent year-over year to 2,985 home sales across the Austin-Round Rock Metropolitan Statistical Area (MSA) in August 2016, while median home price increased 9.4 percent year-over-year to $289,990. Housing stock across the five-county area continued to be constricted and sell rapidly in August 2016, with monthly housing inventory increasing 0.1 months year-over-year to 2.8 months and average days on market remaining statistically unchanged from last year at 42 days.
The largest annual gain in home sales in August 2016 was in Hays County, where single-family home sales jumped 23.2 percent year-over-year to 377 home sales. This jump in home sales activity was driven by home sales in Buda and San Marcos, where single-family home sales experienced of annual gains of 45.8 percent, 67.9 percent and 20.9 percent, respectively. The median price for single-family homes in Hays County increased 7.8 percent to $253,250, while housing inventory increased 0.4 months to 3.3 months of inventory during the same time frame.
Conversely, single-family home sales in Williamson County were flat in August 2016, increasing 0.7 percent year-over-year to 1,035 home sales. Single-family home sales decreased slightly in all of Williamson County’s major cities, with the exception of Leander, which experienced a 3.6 percent increase in home sales in August 2016. The median price for single-family homes in Williamson County increased 6.6 percent to $261,250 while housing inventory increased 0.1 months to 2.5 months of inventory during the same time frame.
Single-family home sales also remained flat in the City of Austin in August 2016, increasing 0.8 percent year-over-year to 868 home sales. Median price increased 10.3 percent year-over-year to $356,276, while housing inventory increased 0.2 months to 2.3 months. Single-family homes spent an average of 35 days on the market in August 2016, two days more than August 2015.
“As housing inventory remains constrained across the Central Texas region and demand remains high, home sales growth is increasingly impacted by new home development,” explained Farmer. “This is especially true in Williamson and Hays Counties, where housing demand and development activity are strongest. As new housing stock becomes available, it’s quickly scooped up by homebuyers.”
Eldon Rude, principal for 360° Real Estate Analytics, added: “The pace of housing development continues to increase in Central Texas, but new home prices are significantly higher. Due to rising land, development and entitlement costs, there are now only a few areas throughout the region where new homes can be built under $250,000. In most areas, entry-level homes are now often priced in the mid $200s and a majority of home starts are priced in the high $200s or more.”