Austin's Median Home Price Hits All-Time High Amidst Declining Inventory

The median price of a single-family home reached an all-time high of $407,400 in the city of Austin—setting a new record for the Austin Board of REALTORS®’s monthly housing reports.But at the same time, the May 2019 Central Texas Housing Market report shows declines in the city of Austin for both new and active listings,as well as a 3.4% drop in home sales. The same wasn’t true, however,for the surrounding areas, which all experienced strong gains.

For May, the median home price in the five-county MSA increased 4.2% to $335,095. Home sales increased year over year by 6.2% to 3,452 sales; sales dollar volume experienced a double-digit percent increase of 14.8% to $1,468,980,773 - the highest volume to date. During the same period, new listings decreased 1.3% to 4,356 new listings, while active listings decreased 0.6% to 6,781 active listings. Pending sales were up 8% to 3,504 pending sales. Housing inventory in May declined 0.1 months year-over-year to 2.6 months of inventory.

In the City of Austin, single-family home sales decreased by 3.4% in May to 1,010 sales. However, sales dollar volume increased by 7.1% to $512,126,547, illustrating higher price points and a tightening market. The median price for single-family homes rose 5.8% year over year to $407,400. During the same period, new listings decreased 3.6% to 1,263 listings; active listings decreased 11.3% to 1,349 listings, but pending sales increased 3.3% to 1,009 pending sales. Monthly housing inventory decreased 0.2 months year over year to 1.7 months of inventory.

(information courtesy of ACTRIS)

National Market Update

Existing Home Sales rebounded in May after two down months, with a 2.5% increase. May housing starts had a 1% dip, but the 1.269 million annual rate still beat expectations. Home building rose 2.4% from Q4-2018 to Q1-2019.

Homeowner equity is at its highest level in 17 years, and the value of owner-occupied homes in the US is 15% above the peak 2006, at $26.1 trillion, the Fed's Q1 Flow of Funds report shows. Freddie Mac noted in their May forecast that "existing home sales have benefited from low mortgage rates and a healthy job market."