For the second consecutive month, Austin home sales have dropped. In July, the Austin Board of Realtors reported a drop in sales for the first time in three years, a trend that continued through August, according to a new report by ABoR.
The report points to a few factors causing this downward trend. The first is the $311,414 average price tag for a single-family home, a 9 percent increase over last year. The second is a population that is unable to afford these rates. According to ABoR President Bill Evans, "A majority of Austin-area homes are now priced out of an affordable range for first-time and first-time move up homebuyers, where a significant portion of home sales volume occurs."
ABoR also cites a lack of inventory as a reason for the slow down. Though active listings did increase 10 percent from 2013, monthly housing inventory remains at only three months. According to the Real Estate Center at Texas A&M University’s, a balanced market is a housing inventory level of 6.5 months.
In the report, Evans also sends out a call to action to area voters, saying, "We need a regulatory environment that supports the development of affordable housing stock for the future stability of our Austin housing market. As we prepare for the new districted Austin City Council this November, ABoR encourages voters to seek leaders that will address our housing and development challenges."
The report also released the following statistics:
- 2,835 — Single-family homes sold, 4 percent less than August 2013
- $247,500 — Median price for single-family homes, 11 percent more than August 2013
- $311,414 — Average price for single-family homes, 9 percent more than August 2013
- 42 — Average number of days single-family homes spent on the market, one day fewer than August 2013
- 3,310 — New single-family home listings on the market, 4 percent more than August 2013
- 6,707 — Active single-family home listings on the market, 10 percent more than August 2013
- 2,430 — Pending sales for single-family homes, 1 percent more than August 2013
- $882,858,690 — Total dollar volume of single-family properties sold, 4 percent more than August 2013