The Austin real estate market maintained robust demand for housing with limited inventory. Population growth continues to push the Austin/Central Texas economy. The Austin Board of Realtors reported single family home sales in the five-county MSA rose 5.3% year over year with 2,985 home sales in August.
The Austin Housing Market:
1.Austin Board of Realtors President, Aaron Farmer said, “Austin, and now the Central Texas region at large, continuesto be a magnet for jobs and new businesses across multiple industries. This continues to keep housing demand at anall-time high and inventory at near-record lows despite strong housing development and a greater number of listings on the market.”
2.The median home price for August rose to $289,900, a strong increase of 9.4% year over year.
3.Total single-family home inventory remained statistically unchanged from the year prior at 2.8 months’ supply. Aninventory level of 6.0 months is a balanced market in which the supply and demand for homes is in equilibrium.
The Austin Economy:
1.The Austin MSA reported a loss of 4,700 jobs from July to August 2016; however, despite these monthly losses, thearea’s annual growth rate was a healthy 3.2%, representing the addition of 30,900 jobs since August 2015.
2.According to the Texas Workforce Commission, unemployment in the Austin – Round Rock MSA dropped by 0.1% to3.5% from July 2016 to August 2016, well below the national unemployment average of 5.0%. The Texas WorkforceCommission reported the largest decrease of payroll employment was in the education and health services sector(-1.4%) followed by government (-1.1%) and leisure and hospitality (-1.1%). Mining, Logging & Constructioncontinues to experience the greatest regional job growth with an annual increase of 12.3%.
3.The Austin Business Journal3 reported that Austin's suburbs have been the focus of tremendous growth since theend of the Great Recession. Since 2010, the entire Austin metro area population has grown by 15.8 percent, withmuch of that activity coming from the suburbs, particularly north and south of Austin along I-35.
The San Antonio area housing market experienced a resounding jump in August home sales following a lackluster July. The San Antonio job market continues to tread water in the summer months but is up 1.9% on an annual basis. Demand for new housing remains consistent with constrained inventories and the housing market remains fundamentally sound. The San Antonio Board of Realtors reported home sales in August increased by 13% year over year.
The San Antonio Area Housing Market:
The San Antonio MSA Economy:
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Jim McAlister, Sr.