The May 2018 Central Texas Housing Market report from the Austin Board of Realtors has been released and no surprise here! The decreasing housing inventory paired with strong demand continues to drive the City of Austin’s growing affordability crunch! However looking at the Austin-Round Rock MSA, not much of a change; housing inventory decreased by 0.1% and the median single family home price increased 5% year-over-year to $325,000. The total dollar volume of single family homes increased 7% to 1.3 Billion!
Steve Corey, 2018 President of the Austin Board of Realtors, said “The City of Austin’s lack of housing choices disadvantages first-time homebuyers, families with children and middle and lower-income buyers. Coupled with rapid growth, it’s driving an affordability crisis that leaves many residents looking for homes far from job centers and essential services.” Same song..second verse. To find affordable housing consumers move to the Austin-Round Rock MSA but are finding plenty of goods and services and businesses that are moving out to the burbs to be closer to their work force.
City of Austin inventory continues to be historically low while median home prices have reached historic heights! The debate continues over the CodeNext process, which many feel is the answer to ease affordability pressures by allowing a wider variety of homes along corridors and in transition zones while streamlining development regulations. There is a rush to get CodeNext pushed through but has enough time been allotted to make sure this measure is really going to help Austin with its growth or impede it? Unsubstantiated rumor has it CodeNext is back to the drawing board due to fierce opposition.
I always make time to read what Mark Sprague, Independence Title State Director of Information Capital, has to say about the Texas real estate market! In his latest post on his blog “The House/Apartment You look at Today Will be Gone Tomorrow,” I agree there is not enough resale inventory, rates are increasing and the cost of building is up dramatically! As he stresses, you may find it tomorrow but there is no question it will be more expensive.
Mark tells us “Builders have to pass the increased homebuilder costs on to the consumer and the cost of money is going up! Lumber prices are up 22% year to date due to imposed tariffs and demand. The cost of money is going up and for every 1% increase interest rates; you lose 12% buying power.” Wow..if you are sitting on the fence about buying the time is now to hop off or you’ll find yourself it’s going to cost you a lot more later!
Austin-Round Rock MSA is still moving single family homes at a record pace. There is a 6% increase in Pending sales while only a 1% in Active Listings, days on market are up 3%.
With the latest news in increased homebuilding costs and rises in the cost of money there is no better time to buy than now!
As always, Austin real estate information is brought to you as a courtesy by Dorie Dillard of Coldwell Banker United; your NW Austin Real Estate Professional.
As in everything preparation is the key to success. If you’re looking for an agent to provide you with what you’ll need to get as seamlessly through the home selling process then reach out to me ay 512-346-1799 or dillard@reloaustin.com and Let’s Talk!
We can discuss current market trends in the area and if you want to sell at the highest list-to-sell price, in the shortest amount of time…I can help.
Remember … Hiring the RIGHT NW Austin Realtor® is critical to your home selling success!
