Increasing Sales and Decreasing Home Stock continues
As the summer-selling season came to an end, August Austin-area home sales continued to increase, while listings on the market decreased compared to the same month last year. The Austin Board of REALTORS® latest Central Texas Housing Market Report indicates the imbalance between supply and demand––which continues to drive up the cost of homes in Austin––will persist beyond this summer's sales activity.
Nora Linares-Moeller, executive director of the nonprofit HousingWorks Austin, said a broader variety of housing options is key to addressing the city’s affordability crisis. Her organization aims to increase Austin’s supply of affordable housing. “Austin needs more duplexes and multiplexes to provide more affordable options at different price points”
In the Austin-Round Rock MSA, single-family home sales in August increased 5.8% to 3,189 home sales, and sales dollar volume increased 7.8% to $1,289,691,264. The median price for single-family homes slightly increased by 2% to $326,500. During the same period, new listings decreased 7.1% to 3,457 listings; active listings decreased 9.3% to 7,074 listings; but pending sales jumped 19% to 3,114 pending sales. Monthly housing inventory declined 0.3 months year over year to 2.7 months of inventory.
Single-family home sales increased 3.3% this August to 936 sales in the city of Austin. During the same period, sales dollar volume increased 7.1% to $479,729,986, and the median price for single-family homes rose 2.7% year over year to $400,500. New listings decreased 10.3% to 947 listings; active listings dropped 19% to 1,418 listings; but pending sales jumped 15.2% to 894 pending sales. Monthly housing inventory decreased 0.4 months year over year to 1.8 months of inventory.
(information courtesy of ACTRIS)
National Market Update
The New Home Sales 12-month average hit a post-recession high, surging up by 18% year-over-year for August. Additionally, pending home sales continued to increase nationally with a 1.6% increase in August. Prices of homes nationally continued to rise, but at a much slower pace. The FHFA Price Index rose 0.4% and the Case-Shiller Home Price Index rose 0.1%.
Wall Street is expecting the Federal Reserve to drop the rate again at the December 11 meeting, with a currently projected 68% probability. Something to note is that this doesn't necessarily lead to better mortgage rates as there are multiple factors at play with those.