Year-End 2018 Austin Market Report
The December and Year-End 2018 Central Texas Housing Market Report is out from the Austin Board of REALTORS® (ABoR). It was yet another record-breaking year for sales dollar volume in the Austin-Round Rock MSA. The median single-family home price in Austin increased by 6.1% year over year in December to $376,875. Median single-family prices increased annually by 4.1% in Austin. Compare that to 3.6% annualized for the Austin-Round Rock MSA. Though prices and sales dollar volume once again rose year over year, the number of homes sold significantly decreased in December in Austin by 17.1% year over year and by 11.1% in the MSA. Demand remains very high, but a mere 1.4 months of inventory in Austin (2.3 months in the MSA) and affordability (median home price vs. median income) constrained the 2018 market. Overall, Austin sales volume was flat in 2018 with the MSA increasing by 2.1%.
Kevin Scanlan, the 2019 ABoR president, highlights the affordability and housing supply problems: “2018 was the highest-grossing year on record, and for the first time ever, the median price for single-family homes in the Austin-Round Rock MSA stayed above $300,000 for 10 consecutive months. While much of the region is benefiting from these higher numbers, increasing home prices are forcing families out of the city of Austin. This phenomenon is leading to lower enrollment in schools and could lead to decreased property tax revenue and budget shortfalls.”
Interest rates are also having an impact on sales volume. Mark Sprague at Independence Title said, "Last November, we began to see fewer listings on the MLS (multiple listing service), which is typical of a seasonal slowdown during the holidays. It's also likely that people are staying in their homes longer to watch their investment increase and keep their current interest rate."
Here are basic stats on single-family home sales for December 2018 for the City of Austin and the greater Austin area:
Median rent for a 3/2 single-family home in Austin was $1,750/mo. in 2018, which was up about 3% from 2017.
Duplex and fourplex unit rents in Austin also remained relatively flat for the third year in a row in 2018. The median duplex unit rent was $1,350/mo., while the median fourplex unit rent was $1,050/mo.
