July 2016 ABOR Market Report
AUSTIN, Texas – Aug. 18, 2016 – Single-family home sales volume declined in the Central Texas area for the second time in 2016, according to the July 2016 Central Texas Housing Market Report released today by the Austin Board of REALTORS®. Across the Central Texas region, 4,230 single-family homes were sold in July 2016, a decrease of 3.1 percent compared to July 2015.
“When it comes to sales volume, we’ve grown very used to seeing year-over-year increases every single month, but it’s important to remember that 2015 had the strongest summer selling season in the region’s history,” said Aaron Farmer, 2016 President of the Austin Board of REALTORS®. “The value of Central Texas real estate has continued to increase, which is good news for homeowners, but those rising prices could start to have a cooling effect on sales volume in the market amidst growing affordability challenges.”
The median price for single-family home sales in Central Texas was $260,000 in July 2016, a 6.1 percent increase compared to the same month of the prior year. Over the same time period, Central Texas inventory levels were statistically unchanged at 3.6 months and homes spent an average of 48 days on the market, three days less than July 2015.
A closer look at regional home sales among various price classes showed drastically different housing market conditions between the lower- and higher-end segments of the market. Across the Austin-Round Rock Metropolitan Statistical Area (MSA) in July 2016, inventory for homes priced between $100,000 and $200,000 was virtually non-existent at less than one month of inventory. Conversely, homes priced above $400,000 had more than four months of inventory, with homes priced $1M and higher well within a buyer’s market at more than 13 months of inventory.