Austin MSA Real Estate Market
Austin real estate market is ending 2016 with a double-digit increase in demand for housing. Continued limited inventory is pushing prices up as population growth and job growth continue to fuel the Central Texas economy. The Austin Board of Realtors reported single family home sales rose 15.8% YOY in the Austin-Round Rock MSA.
The Austin Housing Market1:
- Austin Board of Realtors President, Aaron Farmer said, “This end-of-year surge in home sales is an unusual and welcome surprise to what’s typically the lowest months for Central Texas home sales volume during the year. Home sales throughout 2016 continue to be fueled by our regions steady population growth. At the current pace, 2016 will likely turn out to be another record year for Central Texas home sales”
- The median home price for November rose to $342,000, an increase of 4.0% year over year in the city and 7.0% across the Austin-Round Rock MSA to $294,245. Williamson County experienced a robust 12.1% increase in median price to $275,000.
- Total single-family home inventory remains at an extremely tight 2.3 months inventory in the Austin-Roundrock MSA. An inventory level of 6.0 months is a balanced market in which the supply and demand for homes is in equilibrium.
- “Housing inventory will continue to be one of the biggest challenges facing the Central Texas Housing market in 2017,” said Farmer. “In some local markets inventory levels have fallen below 1.0 months which means that available housing stock is practically non-existent.”
The Austin Economy2:
- The Austin MSA reported an increase of 5,600 jobs from October to November 2016. The area’s annual growth rate was a steady 2.0%, with a total of 19,500 jobs added.
- According to the Texas Workforce Commission, unemployment in the Austin – Round Rock MSA dropped by 0.06% to 3.0% from October to November 2016, well below the state and national unemployment average of 4.2% and 4.4%, respectively. The Texas Workforce Commission reported the largest increase of payroll employment was in the Mining, Logging, & Construction sector (1.6%) followed by Trade, Transportation & Utilities (1.5%) and Government (.8%). The only sector reporting a decrease of payroll employment in November was in the financial activities sector (-1.2%).
San Antonio MSA Real Estate Market
The San Antonio area housing market continues to exhibit hearty growth. The San Antonio Board of Realtors reported home sales in November increased by 23% year over year. The San Antonio job market continues to trend up with a 1.6% annual job growth rate. Demand for new housing remains stout with constrained inventories and the housing market remains fundamentally sound.
The San Antonio Area Housing Market3:
- November 2016 had a total of 2,115 sales vs 1,721 in November 2015, a strong annual increase of 23%.
- “We had nearly 400 more homes sold in November 2016 than in 2015, and more than 2,000 additional homes sold this year to date,” said SABOR’s 2016 Chairman of the Board, Bob Jacobs. “While our prices have increased over the years, we still continue to remain below the state average and below many other major metro areas in Texas.”
- The average home price in November 2016 reached $238,347 vs $217,456 in November 2015, an increase of 10% year over year.
- The median price of a home sold in November was $199.400 vs $183,400 in November 2015, a 9% increase year over year.
- Homes priced $200,000 to $500,000 made up 44% of November sales, while homes priced under $200,000 made up 50.3% of the market. Homes priced over $500,000 made up over 5.3% of the sales, which is consistent with previous months. Overall, San Antonio continues to be able to offer affordable and moderately priced housing.
- Total single-family home inventory remained constrained at 3.5 months available. Anything below 6.0 months’ supply is considered a tight market.
The San Antonio MSA Economy:
- The San Antonio MSA reported a gain of 4,400 jobs in November. The area’s annual growth rate was 1.6%, representing the addition of 15,800 jobs since November 2015. The Texas Workforce Commission reported the strongest growth in Trade, Transportation, & Utilities (+1.9%) and Financial Activities (+1.5%) with the largest decrease in the construction (-1.1%) and leisure and hospitality (-0.6%).
- Unemployment in November 2016 was 3.5%, a .2% decrease from October, and well below the state and national unemployment average of 4.2% and 4.4%, respectively4
Should you have any questions, please feel free to contact our office at (713) 535-2250. For more information on our
company, please visit our website at
Jim McAlister, Sr.