After a double-digit surge in home sales last month, Austin-area home sales dipped three percent to 2,944 single-family home sales in July 2014, according to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR). This is the first decrease in home sales since May 2011. At the same time, monthly housing inventory increased on a year-over-year basis for the first time in three years as more listings entered the market.
Bill Evans, 2014 President of the Austin Board of REALTORS®, explained, “July 2013 had the highest monthly home sales volume in Austin’s history, so we knew it was going to be a tough month to beat. However, there’s no denying that the Austin-area housing market has been impacted by issues in inventory and affordability. With such high demand, the Austin-area housing market cannot grow without an increasing, continually replenished housing stock, but that housing stock must also be affordable and attainable for Austin homebuyers.”
Austin-area monthly housing inventory rose to 3.0 months in July 2014, an increase of 0.2 months from the year prior and the first annual increase in inventory levels since May 2011. This was driven by an increase in available listings, as active listings jumped 12 percent year-over-year to 6,859 listings and new listings rose eight percent during the same time frame to 3,788 listings. However, Austin-area housing inventory is still well below six months, which the Real Estate Center at Texas A&M University cites as a balanced market.
In addition, Austin-area home prices continued to climb with median price increasing nine percent year-over-year to $250,000 and average price rising seven percent to $318,854 in July 2014.
Evans continued, “Now, more than ever, managed growth and planned development are important for ongoing affordability and livability in Austin. As the City of Austin overhauls the Land Development Code that will dictate what development and housing is allowed as we continue to grow, we have to ask ourselves, ‘Is this the right kind of home for Austin’s housing market and do our regulations allow for it?’”
Despite higher home prices, Austin-area homes continued to sell at a faster pace. In July 2014, single-family homes spent an average 39 days on the market, two fewer days compared to July 2013. In addition, pending sales decreased four percent to 2,660 single-family home sales.
Evans concluded, “Amid questions about the direction of Austin’s market, we don’t believe this small decrease in home sales is indicative of a negative trend. The high demand for Austin real estate over the last few years continues to be fueled by strong job and economic growth in the Austin area. The issue we’re facing now is not whether Austin-area property values will fall, but whether future housing market growth in the Austin area will be stifled by a lack of affordable housing options for Austin-area home buyers.”
July 2014 Austin Real Estate Market Statistics
- 2,944 – Single-family homes sold, three percent less than July 2013.
- $250,000 – Median price for single-family homes, nine percent more than July 2013.
- $318,854 – Average price for single-family homes, seven percent more than July 2013.
- 39 – Average number of days single-family homes spent on the market, two days fewer than July 2013.
- 3,788 – New single-family home listings on the market, eight percent more than July 2013.
- 6,859 – Active single-family home listings on the market, 12 percent more than July 2013.
- 2,660 – Pending sales for single-family homes, four percent less than July 2013.
- 3.0 – Months of inventory* of single-family homes, 0.2 months more than July 2013.
- $938,706,176 – Total dollar volume of single-family properties sold, four percent more than July 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 July 2014 was 336, which is four percent less than July 2013. In the same time period, the median price for condos was $204,000, which is 12 percent more than the same month of the prior year. These properties spent an average of 37 days on the market, 10 days fewer than July 2013.
In July 2014, a total of 2,110 properties were leased in Austin, which is five percent more than July 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 9,000 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.