Austin-area home sales declined for the second consecutive month in August 2014 as rising home prices and housing affordability issues continue to affect the Austin-area housing market. According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), Austin-area home sales decreased four percent year-over-year to 2,835 single-family home sales in August 2014.
Bill Evans, 2014 President of the Austin Board of REALTORS¬®, explained, “A majority of Austin-area homes are now priced out of an affordable range for first-time and first-time move up homebuyers, where a significant portion of home sales volume occurs. We need a regulatory environment that supports the development of affordable housing stock for the future stability of our Austin housing market. As we prepare for the new districted Austin City Council this November, ABoR encourages voters to seek leaders that will address our housing and development challenges. The Austin Land Development Code basically needs to be overhauled.”
According to the report, median price for single-family homes jumped 11 percent year-over-year to $247,500 and average price rose nine percent year-over-year to $311,414. Single-family homes continued to sell quickly as they spent an average 42 days on the market, one day fewer than August 2013.
Monthly housing inventory continued to increase in August 2014, rising 0.2 months from the year prior to 3.0 months. While still well below the Real Estate Center at Texas A&M University’s balanced housing inventory level of 6.5 months, Austin-area housing inventory levels could continue to rise as much-needed listings enter the market.
In August 2014, active listings jumped 10 percent year-over-year to 6,707 listings and new listings rose four percent during the same time frame to 3,310. In addition, pending sales increased one percent to 2,430 single-family home sales.
Evans concluded, “An increase in new and active listings is giving the market some much needed breathing room, but Austin’s housing inventory is still very low and has few affordable options. The new Land Development Code will be a crucial catalyst to sustainable market growth in 2015 and years to come, but it must be heavily revised in order to create housing options throughout the city that are affordable for all of Austin’s homebuyers.”
August 2014 Austin Real Estate Market Statistics
- 2,835 – Single-family homes sold, four percent less than August 2013.
- $247,500 – Median price for single-family homes, 11 percent more than August 2013.
- $311,414 – Average price for single-family homes, nine percent more than August 2013.
- 42 – Average number of days single-family homes spent on the market, one day fewer than August 2013.
- 3,310 – New single-family home listings on the market, four percent more than August 2013.
- 6,707 – Active single-family home listings on the market, 10 percent more than August 2013.
- 2,430 – Pending sales for single-family homes, one percent more than August 2013.
- 3.0 – Months of inventory* of single-family homes, 0.2 months more than August 2013.
- $882,858,690 – Total dollar volume of single-family properties sold, four percent more than August 2013.
The following sections describe trends in other sectors of the Austin-area real estate market.
Townhouses & Condominiums
The volume of townhouses and condominiums (condos) purchased in the Austin area in August 2014 was 308, which is 13 percent less than August 2013. In the same time period, the median price for condos was $212,000, which is nine percent more than the same month of the prior year. These properties spent an average of 34 days on the market, six days fewer than August 2013.
In August 2014, a total of 2,109 properties were leased in Austin, which is three percent more than August 2013. The median price for Austin-area leases was $1,500, which is seven percent more than the same month last year.
The Austin Board of REALTORS® (ABoR) is a non-profit, voluntary organization dedicated to educating and supporting Central Texas REALTORS®. ABoR proudly serves more than 10,000 members, promotes private property rights and provides accurate, comprehensive property listing information for the Greater Austin area. Home sales statistics are released by ABoR on a monthly basis.