Using information pulled from the Multiple Listing Service (MLS), the Austin Board of Realtors® (ABoR) has reported that there was a sales dip of three percent, down to 2,944 single-family home sales, in July 2014. July, 2014 is the first moth to have a decrease in home sales since May, 2011. Meanwhile, the monthly inventory for housing has increased on a year-over-year basis for the first time in over three years.
The curent President of ABoR, Bill Evans, stated:
“July 2013 had the highest monthly home sales volume in Austin’s history, so we knew it was going to be a tough month to beat. However, there’s no denying that the Austin-area housing market has been impacted by issues in inventory and affordability. With such high demand, the Austin-area housing market cannot grow without an increasing, continually replenished housing stock, but that housing stock must also be affordable and attainable for Austin homebuyers.”
The Austin-area monthly housing inventory has risen to 3.0 months in the month of July 2014. It is an increase of 0.2 months from the year prior, and it is the first annual increase of inventory levels since May of 2011. This is due to an increase in available listings, as there was a 12 percent year-over-year in active listings. Active listings are up to 6,859 listings, and new listings rose a total of eight percent during the same time frame to 3,788 listings. However, it is still considered a balanced market, as the Austin-area housing inventory is still well below six months.
Austin-area home prices continued to climb with local median prices increasing a total of nine percent year-over-year up to $250,000, while the average price rose year-over-year seven percent to $318,854.
“Now, more than ever, managed growth and planned development are important for ongoing affordability and livability in Austin. As the City of Austin overhauls the Land Development Code that will dictate what development and housing is allowed as we continue to grow, we have to ask ourselves, ‘Is this the right kind of home for Austin’s housing market and do our regulations allow for it?’”
Despite the heightened prices of Austin Real Estate, Austin-area homes continued to sell at a quick pace. In July 2014, single-family homes in Austin spent an average of just 39 days on the market. That number is two fewer days when compared to July 2013. In addition, pending sales decreased four percent to 2,660 single-family home sales.