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Austin MSA Real Estate Market

While February is typically a slow month for home sales, you would never know this in the Central Texas housing market. Single family home sales continue to show a strong increase in the Austin real estate market increasing by 5.7% year over year to 1,955 sales in February 2018.

The Austin Housing Market:

1. Single family home sales across the Austin MSA increased in February 2018 by 5.7% year over year, according to the February Central Texas Housing Market Report.
2. In the City of Austin, the median home price for February increased 12.2% year over year to $367,701, while in the Austin MSA, the median home price increased 3.6% to $299,900 year over year.
3. Housing inventory remained largely flat as levels stayed the same as last year, at 2.0 months across the five-county MSA. In the city of Austin, single-family housing inventory decreased to 1.3 months of inventory compared to 1.4 months a year earlier. Housing inventory levels across the region continue to be well within a seller’s market.
4. Steve Crorey, 2018 president of the Austin Board of Realtors said, “Last month, economists predicted an upwards of 5 % growth in median home prices within the Austin area, and we have surpassed that. Home prices are the sharpest in Austin and Cedar Park.”
5. Mark Sprague, State Director of Information Capital for Independence Title said, “While wages and jobs in the Austin area haven’t increased, the local economy remains strong and continues to attract new residents and potential homebuyers. This population growth is putting additional pressure on local housing markets with already critically low housing inventories, leading to sharp price increases and both homebuyers and new home developers cannot keep up with.”

 

The Austin Economy:

1. The Austin MSA reported 37,300 net new jobs in the 12 months ending February 2018, a steady increase of 3.7% year over year.
2. The Austin Chamber of Commerce reported that approximately 1,170 new jobs are headed to Austin as companies such as XO Group, Progressive Insurance and Baylor Scott & White are among those that have announced plans of expansion.
3. According to the Texas Workforce Commission, unemployment in the Austin-Round Rock MSA held steady at 3.0% from January to February 2018. This is well below the state and national unemployment levels of 4.1% and 4.4% respectively.

 

San Antonio MSA Real Estate Market

The San Antonio area housing market reported February sales of 2,012, an increase of 3% year over year as the Alamo city continued its momentum. Despite less than 4 months of inventory, the median sales price increased to $215,100, an 6% increase year over year, and the average sales price also increased by 6% to $247,307.

The San Antonio Area Housing Market:

1. February 2018 had a total of 2,010 sales vs 1,949 in February 2017, an increase of 3% year over year.
2. The median home price rose by 6% year over year from $202,700 in February 2017 to $215,100 in February 2018, marking the thirteenth month in a row that the median price has been over $200,000, while the average home price also climbed 6% from last year to $247,307.
3. “With tight supply and high demand for homes, 97.6 percent of sellers in February were able to sell their homes for list price,” said Lorena Peña, SABOR’s 2018 Chairman of the Board. “But even though the market is favorable to sellers right now with just 3.3 months of inventory available, we still continue to see a steady flow of houses come on the market which is good news for buyers.”
4. “Though prices here have steadily risen, the increases are more moderate and sustainable than many other large cities in the country,” said Gilbert Gonzalez, SABOR’s Interim CEO. “With people continually moving into the city for jobs, including our military and medical personnel, there is always a market for both buyers and sellers at many different price points.”

 

The San Antonio MSA Economy:

1. The San Antonio MSA reported a robust 24,600 net new jobs in the 12 months ending February 2018, a healthy increase of 2.4% year over year.
2. According to the Texas Workforce Commission, unemployment in the San Antonio-New Braunfels MSA decreased to 3.4% in February 2018, down from 3.9% a year earlier. This is well below the state and national unemployment average of 4.1% and 4.4% respectively.

 

Should you have any questions, please feel free to contact our office at (713) 535-2250.

Regards,

Paul Connor , Hydie McAlister
Principals, McAlister Investment Real Estate