The first half of 2018 single-family home sales in the Round-Rock Metropolitan Statistical Area (MSA) experienced strong and solid growth but declined in June 2018 according to the June & Midyear 2018 Central Texas Housing Market Report released by the Austin Board of Realtors®.
Amidst strong housing demand we see home prices continue to increase and housing levels decrease. These consecutive years of record level sales set an unrealistic level to continue year over year. According to Steve Crorey, 2018 president of the Austin Board of Realtors®, “The Central Texas housing market remains strong and continues to move at a demanding pace.”
Jim Gaines, chief economist at the Real Estate Center at Texas A & M University says “While home sales decreased across the MSA in June, this is not indicative of a declining housing market.” I agree with the number of Pending properties July numbers should show an increase in number of sales.
So let’s look at the actual numbers for June 2018 in single family homes sales in the Austin-Round Rock Metropolitan Statistical Area (MSA) :homes sales declined in June 2.7% year over year and the median price rose 4.9 percent, monthly inventory decreased 0.01 percent to 2.9 months and average days on market decreased by 2 percent. The total dollar volume of single family homes is up 1 percent to 1.4 Billion!
Austin is located in the I-35 corridor where the population growth is particularly strong due to the diversified economic opportunity bringing jobs, new business and resources across multiple industries. In fact the Army said “Austin is the right place” for the Future Army Command Site. Many are saying this is the Army’s most significant reorganization since 1973 with a 4 star general heading up the command center. Just one more reason Austin’s growth is expected to continue for the rest of the year and into 2019.
Mark Sprague, ITC State Director of Information Capital says “In Texas we’re really looking through rose-colored glasses compared to the rest of the nation/world. Texas and particularly Austin are some of the best markets in the nation/world. In the US, only 8 cities have fully recovered from the recession (full employment, real estate values, and the GDP prior to the recession). Four of those are in Texas, the others are Seattle, Portland, San Francisco and New York.”
There are definitely challenges as we grow but there are signs of a great market. We attract business because of our climate, weather, no state income tax and affordability. Our prices are going up but there is tremendous opportunity in the outer areas which eventually become out inner area. With an increase of 8% in pending homes in June..I predict July 2018 will be a great closing month.
As always, what’s going on in Austin and real estate information is brought to you as a courtesy by Dorie Dillard, Coldwell Banker United, your NW Austin Real Estate Consultant. Thinking of buying or selling in NW Austin? Let’s talk! Reach out to me at 512-346-1799 or dillard@reloaustin.com.
