Year-End 2017 Market Report

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The December 2017 Central Texas Housing Market Report is out from the Austin Board of REALTORS®. It was another record-breaking year for total homes sold, beating 2016 by 2.4%. Home prices increased 5.4% in 2017 in the Austin-Round Rock MSA. In the city of Austin, the median price for single-family homes hit an all-time high at $362,000 annually, and sales increased by 2.5% over the same period. Despite breaking records, the Austin market consistently displayed signs of a turn toward normalization and an eventual end to the currently extreme seller's market. The new ABoR president, Steve Crorey, said that,

“While the Austin area continues to break records, the pace at which annual home sales and prices are increasing in Central Texas is beginning to normalize, indicating a more stable market. Affordability in Austin and the surrounding areas remains a concern for potential buyers. It’s important to address this issue in the coming years through policies and development codes that allow for more diverse housing options so that everyone can participate in home ownership.”

Here are the basic stats on single-family home sales for December 2017 for the City of Austin and the greater Austin area:

Inventory and affordability remain major constraints:

Housing inventory decreased year over year from 1.6 months of inventory in 2016 to 1.5 months of inventory in 2017. While the number of houses available in Austin declined, inventory gradually increased in the suburbs. Home sales indicate families continue to move to surrounding areas, seeking more affordable housing options.

“As more families move outside city limits, the city of Austin will lose out on economic development opportunities,” [ABoR president] Crorey said. “Initiatives such as CodeNEXT can pave the way for smarter more sustainable growth in Austin, and in turn make housing more affordable across the region. It’s imperative that we get a handle on our growth as a region through these types of initiatives.”

I'm incredibly excited to see what 2018 has in store for the Austin area market!

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