Following a robust January, the Austin real estate market edged up slightly in February 2017, increasing 0.9% year over year to 1,829 sales. However, continued limited inventory continues to push pricing up 6.5% year over year in the Austin-Round Rock MSA.
The Austin Housing Market
- Brandy Guthrie, 2017 President of the Austin Board of REALTORS® commented, “The Central Texas housing market is just now beginning to catch up to itself after years of unprecedented sales growth. It’s important to remember that current figures are being compared to very strong housing market activity in 2016, so a decline in home sales growth does not automatically mean that the market is softening.”
- “Home sales growth in the city of Austin is currently being driven by the sales of single-family homes priced $750,000 and higher, particularly within the luxury housing market,” added Guthrie.
- The median home price for February rose to $287,000, an increase of 6.5% year over year in the five county MSA.
- Total single-family home inventory remains at an extremely tight 2.1 months inventory in the Austin-Roundrock MSA, an increase of only 0.1% year over year. An inventory level of 6.0 months is a balanced market in which the supply and demand for homes is in equilibrium.
- Mark Sprague, State Director of Information Capital for Independence Title, said: “Low inventory levels, high home prices and slowing job growth across the region are preventing a resurgence of the record-breaking numbers experienced the last two years, but overall the region’s housing market remains very strong. The Central Texas housing market is normalizing into a more stable market.”
The Austin Economy:
- The Austin MSA reported a 34,000 net new jobs in the 12 months ending January 2017, an increase of 3.5% year over year.
- According to the Texas Workforce Commission, unemployment in the Austin – Round Rock MSA rose by 0.3% to 3.5% from December to January 2017, well below the state and national unemployment average of 4.9% and 5.1%, respectively.
- Job growth in Austin in 2016 was more robust that the preliminary estimates indicated. Growth for the 12 months ending December 2016 previously estimated at 1.9%, was boosted to 3.3% following annual benchmark revisions completed in March.
San Antonio MSA Real Estate Market
The San Antonio area housing market continues to exhibit sustainable growth. The San Antonio Board of Realtors reported home sales in February increased by 3% year over year. The San Antonio job market continues to trend up with a 2.6% annual job growth rate. Demand for new housing remains solid with tight inventories, and the housing market remains fundamentally sound.
The San Antonio Area Housing Market:
- February 2017 had a total of 1,954 sales vs 1,890 in February 2016, an annual increase of 3%.
- “Though prices here have grown, the increases are steady and sustainable unlike many other large cities in the country,” said Michele Bunting Ross, SABOR’s 2017 Chairman of the Board.
- The average home price in February reached $234,040 vs $227,812 in February 2016, an increase of 3% year over year.
- The median price of a home sold in February was $201,500 vs $190,800 in February 2016, a 6% increase year over year.
- The majority of homes sold in the San Antonio area continue to be priced under $200,000 with those sales making up 49.5% of the month’s sales. Homes priced between $200,000 and $500,000 accounted for 46.1% of February’s sales and homes priced over $500,000 made up 4.5% of the sales. Of the homes sold over $500,000, nine were priced at $1 million or above.
- Total single-family home inventory remained constrained at 3.3 months available. Anything below 6.0 months’ supply is considered a tight market.
- “Despite the low inventory here, the housing market activity has remained busy for both buyers and sellers,” said Angela Shields, SABOR’s President and CEO.
The San Antonio MSA Economy
- The San Antonio MSA reported 25,600 net new jobs in the 12 months ending January 2017, an increase of 2.6% year over year.
- Unemployment in January 2017 was 3.5%, a 0.8% increase from December, and well below the state and national unemployment average of 4.9% and 5.1%, 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