First Quarter Sales Provide Evidence for Stabilizing Prices
The number of April home sales skyrocketed almost 15% in the Austin-Round Rock Metropolitan Statistical Area (MSA) over the same period last year. However, because the median sales price increased by a much narrower margin, results signal market prices stabilizing, according to the Austin Board of REALTORS®April 2019 Central Texas Housing Market Report.
In April, the median home price in the five-county MSA increased 1.6% to $320,000. Home sales increased year over year by 14.9% to 3,035 sales; sales dollar volume increased 14.1% to $1,207,238,711. During the same period, new listings decreased 1.8% to 4,018 new listings, while active listings increased 1% to 6,217 active listings. Pending sales jumped 14.3% to 3,588 pending sales. Housing inventory in April remained unchanged at 2.4 months of inventory.
In the city of Austin, the median home price in April increased year over year by 1.1% to $394,450. During the same period, single-family home sales increased by 3.6% to 889 sales and sales dollar volume increased by 1.1% to $421,578,061. New listings decreased 10.7% to 1,158 listings and active listings decreased 12% to 1,163 listings, but pending sales increased 4.2% to 1,070 pending sales. Inventory dropped by 0.2 months to 1.5 months of inventory.
(information courtesy of ACTRIS)
National Market Update
New Home Sales fell 6.9% in April from the 11-year high posted in March. The annual rate of 673,000 is still checks in 7% over a year ago. Additionally there was a 14.6% increase in units sold before construction.
Across the US, existing home sales decreased 0.4% in April. Q1 was 1.2% ahead of Q4 2018, which is the first increase after four declining quarters. Rates are low again and price gains are slowing, as inventories have been rising year-over-year 3 straight quarters. Freddie Mac's chief economist notes: "The drop in mortgage rates is causing purchase demand to rise, and the mix...is skewing to the higher end as more affluent consumers are typically more responsive to declines in rates."