AUSTIN, TX– Rising property values and increased demand led to an all-time high in sales dollar volume in 2018 as shrinking affordability spread across Central Texas, according to year-end data in the latest Austin Board of REALTORS® (ABoR) report.
Rising property values and increased demand led to an all-time high in sales dollar volume in 2018 as shrinking affordability spread across Central Texas.
In the city of Austin, the median price for single-family homes increased annually by 4.1 percent to $375,760. While 2018 sales remained flat at 9,357 homes, sales dollar volume increased annually by 5.3 percent to $4,365,464,913. Although the median home price increased 6.2 percent year over year in December to $376,875, sales decreased 17.3 percent year over year to 669 sales. Austin’s monthly housing inventory decreased 0.1 months to 1.4 months of inventory in December.
“2018 was the highest-grossing year on record, and for the first time ever, the median price for single-family homes in the Austin-Round Rock MSA (metropolitan statistical area) stayed above $300,000 for 10 consecutive months,” Kevin P. Scanlan, the 2019 Austin Board of REALTORS® president, said. “While much of the region is benefitting from these higher numbers, increasing home prices are forcing families out of the city of Austin. This phenomenon is leading to lower enrollment in schools and could lead to decreased property tax revenue and budget shortfalls.”
In the Austin-Round Rock MSA, one of the fastest-growing regions in the nation, the median price for single-family homes increased annually by 3.6 percent to $310,400. Sales increased annually by 2.1 percent to 30,713 sales. In December, the median home price decreased 0.8 percent year over year to $305,000, and sales decreased 11.1 percent year over year to 2,370 sales. New listings for the five-county MSA increased annually by 0.8 percent to 38,870 listings in 2018. During the same period, active listings increased 2.5 percent to 6,559 listings and pending sales increased 1.9 percent to 30,805 pending sales. Housing inventory increased in December by 0.2 months to 2.3 months of inventory in the five-county MSA.
“Annual sales are still ahead of where we were last year,” Mark Sprague, state director of information capital at Independence Title, said. “I don’t think 2019 will be any different. Austin’s strong gross domestic product growth will continue to drive our region’s job growth and need for housing.”