Austin MSA Real Estate Market
Single family home sales strong growth throughout the Austin real estate market in May 2017, increasing 9% year over year to 3,170 sales.
The Austin Housing Market:
- Single family home sales volume experienced strong gains across the Austin MSA in May, while sales dollar volumes set an all-time high at $1.2 Billion, according to the May 2017 Central Texas Housing Market Report.
- Brandy Guthrie, 2017 President of the Austin Board of REALTORS®, commented, “Housing is the backbone of our region’s economy and the heart of our communities. Housing demand continues to be at an all-time high in and around Austin, indicated by steady growth in home sales and prices, listing activity and housing inventory. The concurrent gains in listing activity and inventory, in particular, are a positive sign that housing inventory could continue to increase throughout the aggressive summer selling season.”
- In May, single family home sales increased by 9% year over year to 3,170 in the Austin MSA and the City of Austin saw an increase of 9.7% to 993 in home sales for May.
- The median home price for May rose to $310,000, an increase of 8% year over year in the five county MSA.
- Coupled with rising home prices, the recent surge in home sales activity made May 2017 the highest-grossing month for Central Texas real estate in the region’s history. For the first time this year, single family home sales dollar volume topped over $1 billion, an all-time high, in a single month within the Austin MSA, an increase of 18.4% year over year.
- Total single-family home inventory remains at an extremely tight 2.8 months inventory in the Austin-Roundrock MSA, an increase of 0.4 months. An inventory level of 6.0 months is a balanced market in which the supply and demand for homes is in equilibrium. An analysis of monthly housing inventory at the price class level of $250,000 and under mostly remain under one month throughout the region.
The Austin Economy:
- The Austin MSA reported 3,900 net new jobs in the 12 months ending April 2017, a solid increase of 2.9% year over year.
- According to the Texas Workforce Commission, unemployment in the Austin – Round Rock MSA decreased by 0.11% to 3.2% from March to April 2017, still well below the state and national unemployment average of 4.5% and 4.1%, respectively.
San Antonio MSA Real Estate Market
The San Antonio area housing market continues solid sales with volume increasing 11% and the average sales prices increasing 8% 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:
- May 2017 had a total of 3,133 sales vs 2,811 in May 2016, an increase of 11%.
- “The summer season tends to be one of the busier times of year, as kids wind down at school and families look to make a move before the next school year starts. It is also a prime time for people relocating for jobs or just those interested in finding a new place to live,” said Angela Shields, SABOR’s President and CEO. “With homes available at a variety of price points and locations, there are many opportunities to find the property that’s right for you. However, in a tight market like this, work with your REALTOR® to navigate your options and be ready to make a decision quickly.”
- The average home price in May reached $256,263 vs $245,030 in May 2016, an increase of 8% year over year.
- The median price of a home sold in May was $219,700 vs $208,600 in May 2016, a 5% increase year over year.
- In the San Antonio area, the majority of homes sold were priced between $200,000 and $500,000, with those sales making up 50.6 percent of the month’s market. Meanwhile, homes priced under $200,000 accounted for 42.9 percent of the sales in May and homes priced over $500,000 made up 6.5 percent of the market.
- Total single-family home inventory remained very tight at 3.7 months available, the same as May 2016. Anything below 6.0 months’ supply is considered a tight market.
- “We may be in a tight market, but the good news is interest rates are still low which allows buyers to make their money go a little further while sellers can take advantage of the interest in the market to get their property listed,” said Yvette Allen, SABOR’s 2017 Chairman of the Board. “We expect this trend to continue throughout the summer.”
The San Antonio MSA Economy:
- The San Antonio MSA reported 25,600 net new jobs in the 12 months ending April 2017, an increase of 2.5% year over year.
- Unemployment in April 2017 was 3.6%, a 0.12% decrease from March 2017, and well below the state and national unemployment average of 4.5% and 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