The Austin-area real estate market continues to be competitive, but if you’re on the market to buy a home, the good news is that the number of active listings on the market increased for the first time in more than three years. Following the Austin Board of REALTORS® Multiple Listing Service (MLS) report, Austin-area home sales continued last year’s pace in May 2014 while prices increased.
Bill Evans, 2014 President of the Austin Board of REALTORS®, noted that, “The Austin market has been in need of housing stock for some time now, so it’s encouraging to see an increase in listings over last year. With sales volumes remaining strong, the market is still competitive, but the options for buyers are beginning to increase.”
When looking at the figures, the total inventory of Austin-area homes in May 2014 was 2.6 months, the highest rate of inventory seen in Austin since last September but still a slight decrease of 0.1 months from May 2013. The inventory of homes for a market is measured in months, which is defined as the number of active listings (current homes listed on the market) divided by the average sales per month of the prior 12 months. A balanced inventory is considered a 6.5-month housing supply. To put this number in perspective, if no new listings came on the market, the entire Central Texas housing supply would evaporate in just 2.6 months, based on the average sales per month from the last 12 months.
Evans continued, “The May 2014 increase in active listings was not quite enough to offset Austin’s continual year-over-year decrease in housing inventory, which looks at homes sales over a 12-month period. However, if active listings continue to increase on a monthly basis, we will eventually see an increase in Austin’s housing inventory level.”
Below is a snap shot of the May 2014 statistics:
- 2,943–Single-family homes sold, three percent more than May 2013.
- $249,000– Median price for single-family homes, eight percent more than May 2013.
- $325,926–Average price for single-family homes, eight percent more than May 2013.
- 40–Average number of days single-family homes spent on the market, four days fewer than May 2013.
- 4,002–New single-family home listings on the market, seven percent more than May 2013.
- 5,949–Active single-family home listings on the market, four percent more than May 2013.
- 2,928 –Pending sales for single-family homes, two percent more than May 2013.
- 2.6 –Months of inventory of single-family homes, 0.1 months less than May 2013.
- $959,200,218–Total dollar volume of single-family properties sold, 11 percent more than May 2013.
If you’re looking to buy or sell a home this summer, expect a busy summer selling season. Evans concluded, “while more properties are beginning to come on the market, the price appreciation we’ve seen in recent years is continuing as well, so buyers and sellers should both expect a busy summer selling season.” Read the full report online.