Austin MSA Real Estate Market
Austin and the central Texas housing market had yet another record-breaking year. Single family home sales continued to grow in the Austin real estate market, increasing by 12.6% year over year in December 2017 to 2,653 sales. Homes priced between $300,000-399,000 had the highest sales volume in December.
The Austin Housing Market:
- Single family home sales across the Austin MSA increased in December by 12.6% year over year, according to the December 2017 Central Texas Housing Market Report. In the City of Austin, single family home sales volume increased 13.4% year over year.
- “While the Austin area continues to break records, the pace at which annual home sales and prices are increasing in Central Texas is beginning to normalize, indicating a more stable market,” Steve Crorey, 2018 president of Austin Board of REALTORS®, said.
- Both pending sales and active listings figures throughout the Austin MSA indicate that sales growth for single family homes will continue well into 2018.
- In the City of Austin, the median home price for December increased 2.6% year over year to $359,150, while in the Austin MSA, the median home price increased 7% to $310,000 year over year.
- Housing inventory levels continued to edge upward across the five-county MSA in December, increasing 0.1 months to 2.1 months of inventory. In the city of Austin, single-family housing inventory increased 0.1 months to 1.5 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.
- The median price for single-family homes in the Austin-Round Rock MSA rose 7% year-over-year to $310,000 in December 2017. The sales dollar volume of single-family homes sold in the five-county area in December 2017 was $998,896,239, reflecting an 18.9% increase from December 2016.
The Austin Economy:
- December MSA jobs increased from 1,018,800 to 1,048,800, according to the latest figures published by the Texas Workforce Commission. This marks a 2.94% year-over-year increase from December 2016, a net increase of 30,000 new jobs. Over the past 5 years, the job growth rate has increased at an average annual rate of 3.5%.
- According to the Texas Workforce Commission, the Austin–Round Rock MSA unemployment rate decreased to 2.7% from 3.2% a year earlier, which is extremely tight and well below the state and national unemployment average of 3.7% and 3.9%, respectively.
San Antonio MSA Real Estate Market
The San Antonio area housing market reported a 3.7% year over year increase in home sales for the San Antonio-New Braunfels metro area. San Antonio’s growing economy propelled the local housing market to another record sales year in 2017, but the supply of homes on the market remains extremely tight.
The San Antonio Area Housing Market:
- Year to date sales in December 2017 were 32,447, a 3.7% increase from a year earlier.
- The median home price rose by 6.28% year over year from $207,000 in December 2016 to $211,200 in December 2017, while the average home price rose to $258,279 an increase of 8.27% year over year.
- “San Antonio is still doing pretty strong,” said Jim Gaines, chief economist at the Texas A&M Real Estate Center. “It’s doing well economically, it’s still gaining jobs.” “This year will probably be another good one for San Antonio’s housing market because the local economy remains strong, Gaines said and home prices will likely continue to rise.”
- The local area’s inventory of available homes — measured by the average time it takes for a home to be sold if no new homes are listed — dropped to 3.1 months in December, which matches the record low set in December 2016. An inventory of six months indicates a balance between buyers and sellers; the last time the local market was balanced was in November 2012.
- “The housing market is closing the year on a stronger note than earlier this summer, backed by solid job creation and an economy that has kicked into a higher gear,” said Lawrence Yun, the NAR’s chief economist.
The San Antonio MSA Economy:
- The San Antonio MSA reported 6,200 net new jobs in the 12 months ending December 2017, a healthy increase of 3.2% year over year and a net increase of 33,100 new jobs year to date.
- Over the past 5 years, the job growth rate has increase at an average annual rate of 3.25%.
- According to the Texas Workforce Commission, unemployment in the San Antonio MSA decreased to 3.0% in December 2017 from 3.6% a year earlier, well below the state and national unemployment average of 3.7% and 3.9%, respectively.
Should you have any questions, please feel free to contact our office at (713) 535-2250.
Paul Connor , Hydie McAlister
Principals, McAlister Investment Real Estate
Vice President, McAlister Investment Real Estate