Austin Real Estate Update | September 2019
Austin Area Home Sales Break July Records; Inventory Remains Low
Austin-area home sales set an all-time high for any July on record, as sales last month increased 11.7% to 3,439 home sales, according to the latest Central Texas Housing Market Report from the Austin Board of REALTORS®. Despite the record, home sales within the city of Austin remained flat due to limited housing inventory. Jim Gaines, chief economist at the Real Estate Center at Texas A&M University, said despite stagnant sales in Austin, the overall market "is still very strong."
"Due to the lack of affordable options and tight inventory in the city of Austin, home sales are declining within the city limits but increasing in the surrounding areas," he said. "The good news is, we're seeing home prices begin to stabilize."
In the Austin-Round Rock MSA, single-family home sales in July experienced a double-digit increase of 11.7% year over year to 3,439 home sales; sales dollar volume also had a double-digit increase of 15.4% to $1,407,009,110. The median price for single-family homes rose slightly by 3.2% to $325,000. During the same period, new listings increased 4% to 3,841 listings, while active listings decreased 3.5% to 7,197 listings. Pending sales jumped 17.4% to 3,385 pending sales. Monthly housing inventory declined 0.2 months year over year to 2.7 months of inventory.
In the city of Austin, single-family home sales remained stagnant this July at 943 sales. However, sales dollar volume increased by 4.9% to $463,693,858. The median price for single-family homes rose 6.9% year over year to $410,000. During the same period, new listings remained flat at 1,080 listings; active listings decreased 14.7% to 1,435 listings; but pending sales jumped 10.2% to 948 pending sales. Monthly housing inventory decreased 0.2 months year over year to 1.9 months of inventory.
(information courtesy of ACTRIS)
National Market Update
A positive sign was seen in the U.S. Census Bureau's report that residential construction spending rose 0.6% for the month of July, although low inventory continues to be a problem in many areas. Annual home price gains are forecast to be up CoreLogic and up 4.3% by Fannie Mae, as supply constraints push pricing up.
The drop in mortgage rates has resulted in an increase of 4% for purchase mortgage applications and a 152% increase for refinance applications. If you purchased in 2018 you may check rates. The general rule of thumb is that if the rate is 1% lower than your current mortgage it is worth it to refinance. All of that is contingent on any closing costs that are incurred with the refinance so look through the information closely.