March 2018 Austin Market Trends
Single-family homes spent less time on the market
AUSTIN, TX–The Austin housing market continues to show increased demand, with double-digit percent increases in sales in March 2018 according to the Austin Board of REALTORS® (ABoR). The Austin-Round Rock Metropolitan Statistical Area (MSA) experienced a 10.5 percent increase in sales compared to the same time last year, the March 2018 Central Texas Housing Market Report found.
“Last month, 2,714 single-family homes were sold in the five-county Central Texas region, which is more sales than any March we’ve seen on record,” Steve Crorey, 2018 president of the Austin Board of REALTORS®, said. “This type of growth early in the year indicates a strong summer selling season ahead. Those who are interested in buying or selling a home this summer should seek out the services of a REALTOR®.”
In the Austin-Round Rock MSA, the median price of single-family homes increased 3.5 percent to $305,233. Housing inventory levels decreased 0.2 months from March 2017 to 2.2 months of inventory.
“Historically, it’s common for some homes to be on the market for 50 days or more, even in markets with strong housing demand,” Crorey, said. “Within the city of Austin and other local markets with limited inventory, homes are spending a fraction of time on the market—as little as two weeks in some areas. This is an indicator of just how competitive it’s become to purchase a home in and around Austin.”
In the Austin-Round Rock MSA, homes priced between $150,000-$250,000 stayed on the market less than 50 days on average. In the city of Austin, single-family homes in this price range spent, on average, between 27-35 days on the market in March 2018 due to the critically low supply of homes within Austin.
“Demand for homes priced below $250,000 is driving the emergence of new submarkets like Manor and Del Valle, where builders can construct homes at a lower cost,” Vaike O’Grady, Austin regional director for Metrostudy, said. “We’re also seeing creative land plans that provide common area open space to offset smaller lot and home sizes. Attached single-family homes are also coming to the market to meet buyer demand for more affordable housing.”
City of Austin
In the city of Austin, single-family homes spent an average of 46 days on the market, or five fewer days than March 2017. Single-family home sales increased 8.5 percent from March 2017 to 831 sales. The median price for single-family homes remained flat in March, with a 0.1 percent year-over-year increase. Housing inventory decreased from 1.7 months of inventory in March 2017 to 1.5 months of inventory this year.
In March, single-family home sales in Travis County increased 12.8 percent year-over-year to 1,388 sales. The median price for single-family homes in Travis County grew 1.4 percent year-over-year to $355,000 in March. Housing inventory decreased by 0.2 months from the previous March to 2.1 months of inventory.
Single-family home sales increased in Manor to 41 home sales, while the median price increased 6.5 percent year-over-year to $195,900. In Pflugerville, sales decreased 17 percent to 83 home sales, while median price of single-family homes increased 6.8 percent to $251,500.
Williamson County experienced a 9.1 percent increase in sales volume year-over-year to 915 home sales. During the same time frame, the median price for single-family homes increased 4.6 percent to $277,383. Inventory of single-family homes in Williamson County decreased slightly from last year’s 2.3 months of inventory to 2.2 months of inventory in March 2018.
In Leander, March sales jumped 33 percent to 125 sales, while the median price of single-family homes increased 22 percent year-over-year to $297,500. Cedar Park experienced opposite results: March sales volume decreased 28.8 percent to 84 sales. The median price of Cedar Park homes increased 8.1 percent year-over-year to $319,000. Round Rock experienced a subtle bump in sales from last March—2.5 percent—to 167 sales, while median home price increased 7 percent to $259,000.
March sales in Hays County increased 2.8 percent to 293 home sales compared to the previous year, with a similar annual increase in the median home price—2 percent—to $260,000. Inventory of single-family homes in Hays County remained unchanged at 2.6 months of inventory from the previous March.
Sales in Buda decreased 35.1 percent year-over-year to 24 sales, but the median home price increased 7.4 percent to $280,000.
“So far, Buda’s sales are lower this year due to a lack of supply of new homes,” O’Grady, said. “Shoppers are moving farther from Austin in search of affordable homes, which is driving sales in Kyle.”
Kyle experienced a significant increase in sales—a 19.7 percent increase to 85 sales—compared to the previous March. The median price increased 8.4 percent to $225,000.