Austin's flourishing real estate market has done it again, and JB Goodwin REALTORS® have witnessed the breakthrough first-hand. After a record-breaking month of July, Austin has proven that its current status as one of the nation's most scorching markets is not going to change anytime soon. Though Austin's hot market has been a topic of discussion nation-wide for the past year or so, the city has long endured a marked imbalance as a result of its popularity as a real estate hub: trailing supply. While residential development in Austin has been high, it has been no match for the soaring levels of demand. However, Austin Board of REALTORS® president Barb Cooper has indicated that an increase in market equilibrium could be coming, stating that "home prices remain high, but inventory levels have increased steadily throughout 2015, perhaps taking a step toward a more balanced housing market." Whether this is the first you're hearing or you're well-versed in the fluctuations of Austin's housing market — here's the latest:
We'll have to wait to see if market stability is in the books, but there's no doubt at all that rocketing sales are a fixture, at least for now. The month of July has seen a 12% increase in the number of homes sold year-over-year, resulting in an overall dollar volume of over 1 billion — $1,065,785,348 to be exact. This number represents more than just a monthly or yearly milestone: this summer has witnessed more single-family home sales than any other in the history of Austin.
A Hot Market For Austin's Surrounding Areas
So, is it a buyer's market or a seller's? In Austin, it's both. A level under 6.5 months indicates a market where buyers and sellers have relatively equal advantage — if the price is right. July saw a median home price increase of 8% year-over-year in comparison to July of 2014 and the average price snowballed 6% reaching approximately $338,450. According to ABoR, homes above the $200,000 mark are often above budget for many local buyers, pushing sales to communities in the greater Austin area such as Cedar Park, Round Rock, and Pflugerville. As Eric Hegwer, an agent at JBGoodwin REALTORS® stated in response to some speculations of a cooling market, "Properly priced homes, especially those in family friendly areas [are] getting multiple offers in a very short time frame". He went on to say that he "[hasn't] really seen a cooling of the market, but instead a shift due to the time of year", citing the re-opening of schools as a possible reason.
Moving Toward Affordability At The City Center
Since affordability of homes is clearly a high-priority criterion for Austin homebuyers, the city is set to increase supply of affordable housing. Barb Cooper expanded on this strategy in her statement, referencing Mayor Adler's declaration of 100,000 new housing units that will be built over the next 10 years. She asserted that this was "the first step to untangling the city of Austin's complicated permit review process and [will alleviate] affordability issues in Austin. With these steps being taken toward a "sustainable Central Texas housing market" taken into consideration, Austin's market shows no signs of slowing down — in fact, its next few years seem exceptionally promising. Here at JBGoodwin REALTORS®, we look forward to being at the forefront of it all.