Austin Real Estate Sales Volume Reaches Over $1 Billion in June
Austin real estate overall sales reached historic levels in June, topping $1 billion for the first time in its recorded history. A report on BizJournals.com also revealed that for the first time in two years, the number of sales topped 3,000. Barb Cooper, the 2015 president of the Austin Board of Realtors which compiles monthly sales data, said that it "...shows the amazing equity Austin homeowners have in the market and the powerful impact of real estate in Central Texas." Other statistics from ABOR show that this year could be considered the year of the Austin home seller.
The 3,051 recorded transactions is more than a 10 percent increase from May. The median home price in June stands at $272,250, 8 percent higher than June 2014. The average sales price is $333,866, 2 percent higher than a year ago. The average price dropped, however, compared to May when it was $348,201.
A slight drop in the average home price from the month before isn’t surprising considering the proportionate increase in inventory from a year ago. This June, new single family listings were up 3 percent from a year ago to 3,812 listings. The price decrease and listing data indicates that inventory levels may be showing very early signs of balancing out with buyer demand. In that case, home prices will likely plateau and the average days on market may extend past the current 42 mark. What that means for homeowners is that 2015 is the year to list your home, if selling and taking advantage of the hot Austin real estate market is an option.
Additionally, Cooper said ABOR is actively discussing solutions to the affordability challenges facing Austinites. Representatives from ABOR recently met with the Austin City Council and Mayor Steve Adler to brainstorm ways to provide suitable housing for all income brackets.
"We're pleased to see the steps city leaders are taking toward a more affordable Austin," Cooper was quoted in BizJournal.com. The welcome likelihood of an increase of housing options in Austin could also provide a boost to the Austin real estate inventory that will contribute to greater competition in the market.
As the market stands now, Austin’s low inventory real estate market has allowed home sellers the luxury of choosing the best of multiple offers received on their listings. In those situations, buyers were forced to offer more than the asking price in order to win the transaction. When inventory rises and provides sellers with increased competition in the Austin market, sellers will have to price their homes more competitively and likely see their homes sell closer to asking price, if not lower.
Here's a look at other highlights of the ABOR report for June transactions:
• Total volume: $1,018,625,166
• Homes sold: 3,051, up 5 percent from a year ago
• Average days on market: 42, three more than a year ago
• Active single family listings: 6,701, up 4 percent from a year ago
• Pending sales: 3,023, up 8 percent from a year ago
• Months of inventory: 2.8 percent, unchanged
• Condos sold: 331, up 12 percent from a year ago
• Median condo price: $234,500, up 11 percent from a year ago
• Average days on the market: 39, eight days more than a year ago
• Properties for lease on MLS: 1,861, up 14 percent from a year ago
• Median monthly lease rate: $1,600, up 7 percent from a year ago.