Wednesday, February 6, 2019 / by Holly Northup
Curious what’s happening in our local market and how it affects your home value? According to the May 2018 Central Texas Housing Market Report from the Austin Board of REALTORS®, the Austin area continues to see a decrease in housing inventory and an increase in the demand for housing. These statistics prove we are still in a seller’s market and buying a house remains out of reach for several first-time homebuyers. What are the details? Here’s a look:
The median price for single-family homes in the Austin area increased five percent year-over-year to $325,000 in May, an all-time high for the area. At the same time, home sales increased four percent to 3,210 sales and housing inventory decreased to 2.7 months - indicating a strong seller’s market (six months represents a “balanced market”).
What else should you know as a resident of the Austin area? Home price growth has exponentially outpaced the median family income growth in the Austin-Round Rock MSA. In fact, according to the Department of Housing and Urban Development (HUD), the Austin-Round Rock median family income increased 17.5 percent from 2013-2018, while the median home price has increased 42.5 percent from May 2013 to May 2018 – according to the Austin Board of REALTORS®. Spurned by Austin’s growing affordability crisis, data indicates that homebuyers are moving beyond the city limits of Austin. In May 2018, seven in 10 homes sold within the five-county Austin-Round Rock MSA were sold outside of Austin city limits.
“We can’t continue to export affordability beyond Austin city limits,” Crorey concluded. “That’s why we need a code that provides strong tools to manage our region’s current and future growth, as well as sustainable solutions for more affordable housing options right here in Austin. It’s critical that the CodeNEXT process continue and that we as a community stop postponing difficult decisions.”
Do you have questions about how the real estate market affects your home buying or selling power? Are you thinking of making a move? Now is the time. Reach out to our team anytime!
Infographic credit: Austin Board of REALTORS®.