February 2018 ABOR Market Report
AUSTIN, TX–February is typically a slow month for home sales, but the Central Texas housing market didn’t slow a bit last month, according to the latest report from the Austin Board of REALTORS® (ABoR). The February 2018 Central Texas Housing Market Report showed that while home sales volume across the Austin-Round Rock Metropolitan Statistical Area (MSA) grew in February, areas with the highest market demand and lowest inventory experienced double-digit percent price increases and annual declines in sales activity.
“Last month, economists predicted an upwards of 5 percent growth in median home prices within the Austin area, and we have far surpassed that,” Steve Crorey, 2018 president of the Austin Board of REALTORS®, said. “This is especially evident in local markets where housing demand is strongest, such as Austin and Cedar Park. Home price increases are sharpest in these markets, while dwindling housing inventory in the lower price classes could be discouraging people from buying.”
In the Austin-Round Rock MSA, home sales increased 5.7 percent year-over-year in February 2018 to 1,955 sales. The median price of single-family homes increased 3.6 percent to $299,900. Housing inventory remained flat at 2.0 months, the same as last February.
“While wages and jobs in the Austin area haven’t increased, the local economy remains strong and continues to attract new residents and potential homebuyers,” Mark Sprague, state director of information capital for Independence Title, said. “This population growth is putting additional pressure on local housing markets with already critically low housing inventories, leading to sharp price increases that both homebuyers and new home developers cannot keep up with.”
City of Austin
In the city of Austin, the median price for single-family homes increased 12.2 percent to $367,701 year-over-year in February. Single-family home sales decreased 6.7 percent from the same period last year to 599 sales. Inventory decreased from 1.4 months of inventory in February 2017 to 1.3 months of inventory this year.