Single-family home sales in the Austin-area continued to sell at a high rate in August. The total sales increased eight percent, to 2,943 home sales, when compared to the same month last year. This information was pulled by the Austin Board of Realtors (ABoR) using data extracted from the Multiple Listing Service (MLS).
Median prices in August, for Austin-area single-family homes – for both sales and leasing – continued the trend from the June and July by setting a new record for their respective months. The median home sales price also increased by eight percent year-over-year to $265,000, while median home lease payments increased to $1,600.
Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained,
“As Austin REALTORS®, we’ve seen our city expand in ways we never could have imagined, but household incomes have not been expanding at the same rate as the cost of living in Austin. We will continue working with our city’s leaders to find a solution to the complex affordability issues, with the end of goal of providing affordable and diverse housing stock for our growing population that aligns with the actual incomes of Central Texas residents.”
The City of Austin’s 2014 Comprehensive Housing Market Analysis cited that affordable housing costs should be less than 30 percent of gross monthly income.
For example, residents making $50,000 per year should be looking for a mortgage payment of roughly $1,250 per month and would fall in a home sales price range of $200,000–$215,000. However, the August 2015 median home price was $265,000 and the median lease payment in Central Texas was $1,600.
Median home prices continue to rise and have increased by more than 30 percent from August 2010 to August 2015, a $65,000 difference over the last five years. Those numbers certainly make someone investing in Austin real estate excited.
Average home price were up six percent compared to August of last year, to $329,620. Total dollar volume continued to rise year-over-year, but just failed to break the $1 billion mark for the third consecutive month. The total increase, year-over-year was 15 percent up to $970,071,660.
New listings increased two percent to 3,364 listings and active listings increased by four percent year-over-year to 6,979 listings. In addition, pending sales increased 11 percent to 2,686 single-family home sales. Homes remained on the market for 42 days in August 2015, the same length of time as in August 2014.
“This new report from the Bureau of Labor Statistics provides further evidence of the affordability issue in Central Texas. The growing disparity between rising home prices and what Austin residents can afford, combined with low inventory levels, will continue to drive residents outside of Austin’s city limits to buy a home, putting further strain on our region’s infrastructure and resources.”