Our hot housing market has done it again. A new report from the Austin Board of Realtors shows that the Austin-Round Rock metro area closed out 2016 with record-breaking figures, including the highest home sales volume ever.
More than 29,000 single-family homes were sold in the metro area in 2016, a 3.9 percent increase from 2015, which was also a record-breaking year. The median home price climbed 7.2 percent from 2015 to $284,000, and, for the first time ever, the region's home sales topped $10 billion.
In the city of Austin, home sales volume grew slightly, increasing 1.7 percent from the previous year. The median home price increased 5.8 percent to $340,000.
And what should we expect in 2017? According to the report, the market shows signs of normalizing in the coming year.
“The Central Texas housing market is slowly beginning to align with long-term historical trends. Homes are spending more time on the market and the pace of both home sales and price growth is slowing,” says Brandy Guthrie, 2017 ABOR president, in a release. “This normalization does not necessarily mean a weakening housing market, but a return to less aggressive market conditions.”
Still, 2017 could be a record-breaking year.
“The 2017 housing market will likely outpace last year’s levels, but at a less robust margin," notes Mark Sprague of Independence Title. “Recent increases in mortgage rates could continue the current pace of home sales growth into the first part of the year.”