After increasing for five consecutive months, Austin-area home sales dipped four percent in November 2015 compared to the same month of the prior year, according to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR). This is only the second decrease in home sales volume for 2015 to date, with the first decrease occurring in May 2015.
Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “While November single family home sales volume decreased slightly compared to last year, year-to-date home sales volume continues to outpace 2014. With the Austin-area population exceeding two million over the summer, growth in Central Texas is showing no signs of slowing.”
According to the report, the median price for Austin-area single-family homes increased 10 percent year-over-year to $270,000 in November 2015, setting a record for the month of November. Also setting a record for November, average price increased 12 percent to $347,292 during the same timeframe.
New listings increased by one percent and active listings increased by three percent year-over-year. Additionally, pending sales increased by four percent. Homes remained on the market for an average of 54 days in November 2015, one day less than November 2014.
Monthly housing inventory remained unchanged year-over-year at 2.4 months. Housing inventory remains at less than half of what the Real Estate Center at Texas A&M University considers a balanced housing inventory level of approximately 6.5 months.
“The Federal Reserve’s recent decision to raise interest rates is a sign of a healthy economy, and we’re fortunate that Austin has one of the strongest economies and housing markets in the nation,” said Mark Sprague, State Director of Information Capital at Independence Title Company. “Millennials—a large portion of Austin’s population—have never seen interest rates go above 10 percent, so some might be concerned about the impact higher interest rates will have on Austin’s housing market and economy. Even with this increase, however, interest rates are still among the lowest they have ever been, and we do not anticipate a significant impact on the Austin-area housing market.”
Cooper concluded, “It’s encouraging to see an uptick in pending sales, active listings and new listings as a sign of more homes entering the market. Sellers are taking advantage of competitive market conditions and if active listings continue to increase year-over-year, it could lead to a much-needed increase in the Austin-area’s housing inventory level.”
November 2015 Austin Real Estate Market Statistics
- 1,814 – Single-family homes sold, four percent less than November 2014.
- $270,000 – Median price for single-family homes, 10 percent more than November 2014.
- $347,292 – Average price for single-family homes, 12 percent more than November 2014.
- 54 – Average number of days single-family homes spent on the market, one day less than November 2014.
- 2,095 – New single-family home listings on the market, one percent more than November 2014.
- 5,703 – Active single-family home listings on the market, three percent more than November 2014.
- 1,965 – Pending sales for single-family homes, four percent more than November 2014.
- 2.4 – Months of inventory* of single-family homes, unchanged compared to November 2014.
- $629,987,688 – Total dollar volume of single-family properties sold, eight percent more than November 2014.
The following sections describe trends in other sectors of the Austin-area real estate market.
Townhouses & Condominiums
The number of townhouses and condominiums (condos) sold in the Austin area in November 2015 was 180, a 10 percent increase from November 2014. The median price for condos was $216,750, which is one percent less than the same month of the prior year. These properties spent an average of 43 days on market, six days less than in November 2014.
In November 2015, a total of 1,205 properties were leased in Austin, which is five percent more than November 2014. Properties spent an average of 42 days on the market, or four fewer days than in November 2014. The median price for property leases was $1,550 per month, a nine percent increase from November 2014. Active property listings increased by one percent compared to November 2014, reaching 1,726 listings.
The Austin Board of REALTORS® (ABoR) builds connections through the use of technology, education and advocacy to strengthen the careers of its 11,000 members and improve the lives of Central Texas families. We empower Austin REALTORS® to connect their clients to the region’s most complete, accurate and up-to-date listings data.
* The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.