Austin MSA Real Estate Market
Single family home sales continued to show strong growth throughout the Austin real estate market in June 2017, increasing 4.4% year over year to 3,415 sales.
The Austin Housing Market:
- Single family home sales volume continued to show growth across the Austin MSA in the first half of 2017 according to the mid-year Central Texas Housing Market Report and rose 2.8% year over year to 14,958 sales.
- In Hays County alone, single family home sales rose 14.5% year over year to 427 sales in June. This is a result of strong housing development and sales activity throughout the county.
- More homes were sold in Williamson County in the first half of the year than in the city of Austin – despite having less than half the population size of the city of Austin – as strong housing development throughout Williamson County continues to drive sales activity. Housing inventory jumped 0.7 months to 2.9 months of inventory in June 2017, which is the lowest housing inventory level of any county in the Austin-Round Rock MSA. “Williamson County’s housing market growth continues to be stifled by incredibly strong demand coupled with low housing inventory levels. While Williamson County’s housing inventory is slowly recuperating from the critical levels reached in 2016, the county’s housing inventory remains among the lowest in the region,” commented Brandy Guthrie, President of the Austin Board of Realtors.
- “The Central Texas housing market continued to show signs of normalization in the first half of the year, with positive but more moderate gains in sales activity,” said Brandy Guthrie, President of the Austin Board of REALTORS®. “While it could take years for the region’s housing market to achieve balance between home buying and selling activity, these trends indicate that the Central Texas housing market could finally be moving in that direction.”
- In the five-county MSA, the median home price for June rose to $314,000, an increase of 6.6% year over year.
- Total single-family home inventory remains at an extremely tight 3.1 months inventory in the Austin-Roundrock MSA, an increase of 0.5 months. An inventory level of 6.0 months is a balanced market in which the supply and demand for homes is in equilibrium.
The Austin Economy:
- The Austin MSA reported 28,300 net new jobs in the 12 months ending May 2017, a steady increase of 2.8% year over year.
- According to the Texas Workforce Commission, unemployment in the Austin – Round Rock MSA held at 3.2% from April 2017 to May 2017, which is extremely tight and well below the state and national unemployment average of 4.1%, respectively.
San Antonio MSA Real Estate Market
The San Antonio area housing market continues solid sales with volume increasing 4% and the average sales prices increasing 5% year over year. Demand for new housing remains sound with tight inventories, and the housing market remains fundamentally sound as we move into the summer buying season.
The San Antonio Area Housing Market:
- June 2017 had a total of 3,177 sales vs 3,053 in June 2016, an increase in volume of 4%.
- For the first half of 2017, home sales showed consistent growth, with home sales increasing 4% year over year at 14,845 sales.
- “Our local market consistently outperforms last year’s, putting the San Antonio area on track for another record-breaking year,” said Yvette Allen, SABOR’s 2017 Chairman of the Board. “Though prices have increased, they are still generally lower than those in other major Texas metros. This affordability combined with so many jobs relocating here as well as our booming tech, medical and military industries help San Antonio maintain its popularity among buyers.”
- The average home price increased 5% year over year in June, reaching $257,753 vs $246,044 in June 2016.
- The median price of a home sold in June was $222,000 vs $212,000 in June 2016, a 5% increase year over year.
- In June, homes priced below $200,000 made up 41.4 percent of homes sold while homes priced between $200,000 and $500,000 accounted for 52.9 percent of the month’s sales. Homes priced over $500,000 made up 5.8 percent of the market.
- Total single-family home inventory remained very tight at 3.8 months available, a slight decrease from 3.7 in May 2016. Anything below 6.0 months’ supply is considered a tight market.
- “This continues to be a hot market, and homes can sell quickly. For buyers interested in purchasing a home this summer, they can prepare by identifying their must-haves in a home, getting pre-approved and working closely with their REALTOR®,” said Angela Shields, SABOR’s President and CEO.
The San Antonio MSA Economy:
- The San Antonio MSA reported a robust 25,500 net new jobs in the 12 months ending May 2017, a healthy increase of 2.5% year over year.
- According to the Texas Workforce Commission, unemployment in the San Antonio MSA remained the same at 3.6% from April 2017 to May 2017, still well below the state and national unemployment average of 4.1%, respectively.
Should you have any questions, please feel free to contact our office at (713) 535-2250.
Paul Connor , Hydie McAlister , Jim McAlister, Sr.
Principals, McAlister Investment Real Estate
Vice President, McAlister Investment Real Estate