The October 2014 MLS Report showed a massive year-over-year growth in home sales from October 2013. Single-family home sales grew by 16%, with a total of 2,403 homes sold. The 16% growth marked the largest gain in 2014 thus far, the 2,403 homes sold were the most ever in the month of October, and home prices also set a record for October.
“It’s always exciting to see a record-breaking month in real estate, but let’s remember that high demand often leads to high prices,” 2014 ABoR President Bill Evans explained. “For example, this month’s results show that it costs a typical homeowner $23,000 more to buy a home than one year ago. For some Austinites, that kind of price increase could mean looking at homes smaller in size, further outside the Austin area, or not being able to afford to buy a home at all. This just underscores the importance of housing affordability as a key issue going into 2015.”
As Evans said, the record breaking October is exciting for the Central Texas region. However, Central Texans, particularly those looking for homes, might feel a financial strain for the reasons he points out above. One way to reduce this potential strain is to increase the local housing inventory, which relies on a simpler development code. Housing inventory rose year-over-year to 2.7 months, but the Austin area has been hovering around this number for most of 2014.
“This additional housing inventory is encouraging,” Evans added. “But we’ve got a long way to go before homeownership options and availability meet demand in our city. To get us there, we need a regulatory environment that supports all types of affordable housing options.”
What are the other housing stats for October 2014?
- 2,403 – Single-family homes sold, 16 percent more than October 2013.
- $240,000 – Median price for single-family homes, 11 percent more than October 2013.
- $311,028 – Average price for single-family homes, 11 percent more than October 2013.
- 50 – Average number of days single-family homes spent on the market, two days longer than October 2013.
- 2,850 – New single-family home listings on the market, 11 percent more than October 2013.
- 6,170 – Active single-family home listings on the market, 11 percent more than October 2013.
- 2,255 – Pending sales for single-family homes, nine percent more than October 2013.
- 2.7 – Months of inventory* of single-family homes, 0.2 months more than October 2013.
- $747,400,284 – Total dollar volume of single-family properties sold, 29 percent more than October 2013.
Evans concluded, “Many of Austin’s City Council positions, including mayor, are yet to be decided. This is Austin’s last opportunity to choose a City Council that will ensure that Austinites can afford to buy a home in the neighborhoods where they live. ABoR urges Austinites to vote early December 1 through 12 or on Dec. 16 for City Council candidates who will prioritize housing development and affordability issues in 2015.”
So, exercise your democratic power and go vote! To make more sense of these housing numbers and how they can affect your home search, be sure to contact your Central Texas REALTOR®!