Austin MSA Real Estate Market
The Austin real estate market continues to demonstrate healthy demand for housing with limited inventory. Population growth and steady job growth continue to fuel the Austin/Central Texas economy. The Austin Board of Realtors reported single family home sales rose 7.5% year over year in the City of Austin.
The Austin Housing Market:
- Austin Board of Realtors President, Aaron Farmer said, “Home sales typically slow down in the fall, so it’s encouraging to see a surge of sales within Austin’s city limits last month. Much of this growth is being driven by new home sales in the city, which are up 38 percent year to date.”
- The median home price for October rose to $332,250, an increase of 6.5% year over year in the city and 9.3% across the Austin-Roundrock MSA to $279,000.
- Total single-family home inventory increased to 2.6 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.
The Austin Economy:
- The Austin MSA reported an increase of 6,000 jobs from September to October 2016. The area’s annual growth rate was a steady 2.2%, with a total of 21,200 jobs added.
- According to the Texas Workforce Commission, unemployment in the Austin – Round Rock MSA dropped by 0.08% to 3.2% from September to October 2016, well below the national unemployment average of 4.7%. The Texas Workforce Commission reported the largest increase of payroll employment was in the government sector (2.0%) followed by financial activities (1.9%) and education and health services (1.7%). The largest decrease of payroll employment was in the leisure and hospitality sector (-1.2%) followed by manufacturing (-0.6%) and mining, logging and construction (-0.3%).
- Austin was not only named the No. 2 Best Place to Live in the U.S. earlier this year, but also the No. 6 Most Desirable Places to Live by U.S. News and World Reports. “Group these with this latest ranking and it goes to show that not only is there a strong desire for people to move here, but they actually are taking action to do so and not leaving.”3
San Antonio MSA Real Estate Market
The San Antonio area housing market continues strong growth following a slower summer sales season. The San Antonio Board of Realtors reported home sales in October increased by 13% year over year. The San Antonio job market continues to trend up with a 1.3% annual job growth rate. Demand for new housing remains consistent with constrained inventories and the housing market remains fundamentally sound.
The San Antonio Area Housing Market:
- October 2016 had a total of 2,400 sales vs 2,223 in October 2015, a strong annual increase of 8%.
- SABOR’s 2016 Chairman of the Board, Bob Jacobs said “Our prices and sales volume have consistently surpassed those in 2015,” and “even with the cooler weather, the fourth quarter housing market is already shaping up to outpace last year’s record numbers…”
- The average home price in October 2016 reached $240,919 vs $229,637 in October 2015, an increase of 5% year over year.
- The median price of a home sold in October was $202,000 vs $186,900 in October 2015, representing an 8% increase year over year. This is the sixth month in a row that the median price has remained over $200,000.
- Homes priced $200,000 to $500,000 made up 46% of October sales, while homes priced under $200,000 made up 49% of the market. Homes priced over $500,000 made up over 5% 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 2,100 jobs in October. The area’s annual growth rate was 1.3%, representing the addition of 12,900 jobs since October 2015. The Texas Workforce Commission reported the strongest growth in government (+1.7%) and manufacturing (+0.9%) with the largest decrease in the other services sector (-1.2%), professional and business services (-0.7%) and leisure and hospitality (-0.6%).
- Unemployment in October 2016 was 3.7%, a 10% decrease from September, and well below the state and national unemployment average of 4.7%.5
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Jim McAlister, Sr.