Austin MSA Real Estate Market
Single family home sales continue to grow in the Austin real estate market increasing by 3.7% year over year in November 2017 to 2,196 sales.
The Austin Housing Market:
- Single family home sales across the Austin MSA increased in November by 3.7% year over year, according to the November 2017 Central Texas Housing Market Report.
- Brandy Guthrie, 2017 President of the Austin Board of REALTORS® commented, “Due to rapid population growth throughout Central Texas, Austin continues to have one of the highest demands for housing in the nation. Homes sales are the strongest where price points are the lowest and where development options are available, such as parts of Williamson and Hays counties. We are seeing some slowing home price appreciation and housing inventory gains, which is normalizing us to a more stable market and aligning us with long-term historical market trends.”
- In the City of Austin, the median home price for November increased 6.8% year over year to $360,000, while in the Austin MSA, the median home price increased 2.9% to $296,500 year over year.
- Housing inventory levels continued to edge upward across the five-county MSA in November, increasing 0.2 months to 2.5 months of inventory. In the city of Austin, single-family housing inventory increased 0.1 months to 2.0 months of inventory. Housing inventory levels across the region continue to be well within a seller’s market. An inventory level of 6.0 months is a balanced market where the supply and demand is in equilibrium.
- “Even with the market normalization trends we are seeing, home sales volume throughout the Austin-Round Rock MSA is still on-pace with 2016 year to date,” added Guthrie. “If this month’s home sales volume exceeds that of December 2016, 2017 will most likely be another record-breaking year for the Austin-area housing market.”
- “The 2018 Austin-area housing market will be a lot like this year’s housing market – slower, but still very strong housing market activity,” said Mark Sprague, State Director of Information Capital for Independence Title. “However, there are multiple economic factors to watch out for going into next year. Slowing job growth in Central Texas, the impact of Hurricane Harvey on the price of building materials and housing development costs, and the overhaul of the U.S. tax plan are all factors that could hinder housing market growth and negatively impact housing affordability in the Austin area in 2018.”
The Austin Economy:
- The Austin MSA reported 9,100 net new jobs in the 12 months ending October 2017, a steady increase of 2.2% year over year.
- According to the Texas Workforce Commission, Austin – Round Rock MSA unemployment decreased from 2.9% in September 2017 to 2.6% in October 2017, which is extremely tight and well below the state and national unemployment average of 3.5% and 3.9%, respectively.
San Antonio MSA Real Estate Market
The San Antonio area housing market reported November sales of 2,324, an increase of 7% year over year as the Alamo city’s population growth and low interest rates continue to drive sales. Despite less than 4 months of inventory, the median sales price increased to $216,900, a 9% increase year over year, and the average sales price increased by 7% to $256,253.
The San Antonio Area Housing Market:
- November 2017 had a total of 2,324 sales vs 2,168 in November 2016, an increase of 7% year over year.
- The median home price rose by 9% year over year from $199,900 in November 2016 to $216,900 in November 2017, while the average home price rose to $256,253 an increase of 7% year over year.
- Almost 28,300 homes have been sold so far this year which is 4.2% higher than at this point in 2016. The market is set to pass the record set last year when 29,607 homes were sold.
- “We had over 150 more homes sold in November 2017 than in 2016, and over 1,000 additional homes sold this year to date,” said Yvette Allen, SABOR’s 2017 Chairman of the Board. “All signs point to this being our biggest year yet in real estate.”
- “San Antonio is fortunate to have so much diversity in the properties available here,” said Gilbert Gonzalez, SABOR’s interim CEO. “Whether you’re looking to own a house in the suburbs, buy a condo downtown or move into an apartment in the city, there really is something for everyone.”
- Half the homes sold in November were priced between $200,000 and $500,000 while homes priced under $200,000 made up almost 44 percent of the market’s sales. Homes priced over $500,000 accounted for six percent of the month’s market. Since January, only the months of May and November have reported more than six percent of sales in this high-end bracket.
The San Antonio MSA Economy:
- The San Antonio MSA reported 6,900 net new jobs in the 12 months ending October 2017, a healthy increase of 2.9% year over year.
- According to the Texas Workforce Commission, unemployment in the San Antonio MSA decreased to 2.9% in October 2017 from 3.8% a year earlier, well below the state and national unemployment average of 3.5% and 3.9%, respectively.
Should you have any questions, please feel free to contact our office at (713) 535-2250.
Paul Connor , Hydie McAlister and Jim McAlister, Sr.
Principals, McAlister Investment Real Estate
Vice President, McAlister Investment Real Estate