The Blog ofNick Jenkins Real Estate

June 2018 Austin Area Market Update

Decreasing housing inventory paired with strong demand continues to drive Austin’s growing affordability crunch, according to the May 2018 Central Texas Housing Market Report from the Austin Board of REALTORS® (ABoR). In the city of Austin, the availability of housing compared with demand — as measured through inventory — continues to be historically low while median home prices have reached historic heights.

The median price for single-family homes in the city of Austin increased 3.7 percent year-over-year to $389,000 in May, an all-time high for the city. While home sales rose 5.9 percent to 1,037 sales, housing inventory decreased from 2.1 months last year to 2.0 months during the same time frame. There were fewer active listings as well, as the amount of homes available on the market decreased 6.8 percent to 1,533 listings.

Over the last five years, the pace of home price growth in the Austin-Round Rock MSA has exponentially outpaced the median family income growth. According to the Department of Housing and Urban Development (HUD), Austin-Round Rock median family income increased 17.5 percent from 2013-2018, while ABoR data shows that median home prices increased 42.5 percent from May 2013 – May 2018. The growth in housing prices in the city of Austin also has implications for the Central Texas region at large, where home prices continue to rise amidst tight inventory. In May 2018, seven in 10 homes sold within the five-county MSA were sold outside of Austin city limits.

All signs continue to report to a robust housing market for the remainder of 2018 in Texas. The Federal Reseve Bank of Dallas is forecasting job growth of 3.3 percent in the state. The National Association of Home Builders is reporting new home sales rising 6.7 percent to the highest level this year. And new findings from the National Association of Realtors® show that a high number of Americans, 75 percent, believe that now is a good time to sell a house, while 68 percent think it is a good time to buy.  

Here are the regional breakouts with detailed market information:

AUSTIN-ROUND ROCK AREA-May 2018 Single-family home sales in the Austin-Round Rock MSA 300grew 4.2 percent year-over-year in May to 3,210 sales. Homes priced between $300,000 and $399,000 had the largest sales volume in that period. Of single-family homes sold, 24.6 percent sold for less than $250,000; 56.1 percent sold between $250,000-$500,000; and 19.3 percent sold for $500,000 or more. The median price for single-family homes in the Austin-Round Rock MSA rose 4.8 percent year-over-year to $325,000 in May 2018. Housing inventory of single-family homes in the Austin-Round Rock MSA fell 0.1 months to 2.7 months and remain well below the 6.0-6.5 months of inventory the Real Estate Center at Texas A&M University projects for a balanced housing market. In May single-family homes in the Austin-Round Rock MSA spent an average of 46 days on the market, three more days than the previous May.

CITY OF AUSTIN-May 2018 Single-family home sales volume in the city of Austin increased 5.9 percent year-over-year to 1,037 home sales in May. Homes priced between $300,000 and $399,000 had the largest sales volume. Of single-family homes sold, 9.8 percent sold for less than $250,000; 61.4 percent sold between $250,000-$500,000; and 28.8 percent sold for $500,000 or more. This May, the median price for single-family homes in the city of Austin increased 3.7 percent to $389,000. Housing inventory of single-family homes in the city of Austin decreased 0.1 months from May 2017 to 2 months of inventory, which is well below the balanced housing market projection by the Real Estate Center at Texas A&M University. Single-family homes priced above $750,000 had the greatest inventory. In May 2018, single-family homes in the city of Austin spent an average of 33 days on the market.

TRAVIS COUNTY-May 2018 Single-family home sales in Travis County increased 6 percent year-over-year to 1,618 sales. Of single-family homes sold, 16.3 percent sold for less than $250,000; 54.3 percent sold between $250,000-$500,000; and 29.4 percent sold for $500,000 or more. Single-family home sales spiked 55.6 percent in Manor to 42 home sales and decreased 10.7 percent to 25 home sales in Lago Vista. Sales increased 3.9 percent to 106 home sales in Pflugerville and decreased 23.9 percent to 35 home sales in Lakeway. The median price for single-family homes in Travis County grew 2.6 percent year-over-year to $375,000 in May. Outside the city limits, the median price decreased 3.6 percent to $199,500 in Manor; 2 percent to $273,000 in Lago Vista; increased 1.4 percent to $258,516 in Pflugerville; and 30.8 percent to $595,000 in Lakeway. Housing inventory decreased 0.2 months from the previous May to 2.6 months of inventory. In the suburbs, housing inventory levels were 1.7 months in Manor; 4.9 months in Lago Vista; 2.1 months in Pflugerville; and 4.2 months in Lakeway. In May 2018, single-family homes in Travis County spent an average of 39 days on the market, four less days than May 2017.

WILLIAMSON COUNTY-May 2018 Single-family home sales in Williamson County increased 1.1 percent in May to 1,104 sales. Of single-family homes sold, 27.7 percent sold for less than $250,000; 64.1 percent sold between $250,000-$500,000; and 8.2 percent sold for $500,000 or more. Compared to May 2017, single-family home sales in Leander decreased 11.4 percent to 109 sales. Sales decreased 5.1 percent to 204 sales in Round Rock; decreased 5.8 percent to 131 sales in Cedar Park; and increased 2 percent to 155 sales in Georgetown. The median price for single-family homes in Williamson County rose 6.7 percent year-over-year to $303,500 in May. During the same period, median home prices increased 6.5 percent to $281,850 in Leander; increased 10.6 percent to $296,864 in Round Rock; increased 5 percent to $341,000 in Cedar Park; and increased 9 percent to $281,500 in Georgetown. Housing inventory in Williamson County increased 0.1 months from May 2017 to 2.6 months of inventory. Housing inventory levels this May were 2.9 months in Leander, 1.7 months in Round Rock, 1.9 months in Cedar Park and 3.1 months in Georgetown. In May 2018, single-family homes in Williamson County spent an average of 51 days on the market.

HAYS COUNTY-May 2018 Hays County single-family home sales increased 13.5 percent year-over-year to 369 home sales in May. Of single-family homes sold, 38.6 percent sold for less than $250,000; 47.6 percent sold between $250,000-$500,000; and 13.8 percent sold for $500,000 or more. Locally, single-family home sales increased from the previous May— 20.5 percent to 94 home sales in Kyle and 25 percent to 60 home sales in San Marcos. The median price for single-family homes in Hays County increased 6.2 percent annually to $272,990 in May. Median home prices were $229,000 in Kyle, $242,500 in San Marcos and $281,075 in Buda. The sales dollar volume of single-family homes sold in Hays County was $122,545,287. Housing inventory in Hays County decreased 0.1 months to 3.1 months of inventory, well below the 6.0-6.5 months of inventory the Real Estate Center at Texas A&M University projects for a balanced housing market. Locally, housing inventory levels in May were 1.8 months in Kyle, 2.8 months in San Marcos and 1.9 months in Buda. In May 2018, single-family homes in Hays County spent an average of 59 days on the market, six more days than last year.

Don’t hesitate to contact me if you’d like information about your home or neighborhood.