Home sales growth throughout the Austin-Round Rock Metropolitan Statistical Area (MSA) in February 2017, indicating that the Central Texas housing market is beginning to normalize to more stable market conditions.
Brandy Guthrie, 2017 President of the Austin Board of REALTORS® commented, “The Central Texas housing market is just now beginning to catch up to itself after years of unprecedented sales growth. It’s important to remember that current figures are being compared to very strong housing market activity in 2016, so a decline in home sales growth does not automatically mean that the market is softening.”
Michele Turnquist, Owner and CEO of Engel & Volkers Austin said "The slowing of the market during the winter months and the fact people were wary of rising interest rates are what we think led to a slowing over the past month. I expect with the announcement from the FED on the interest rates rising that a lot more first time buyers will be jumping into the market in March and April."
Single-family home sales in the Austin-Round Rock MSA were essentially flat in February 2017, increasing 0.9 percent year-over-year to 1,829 home sales. Single-family home sales declined from February 2016 in many cities surrounding Austin, with the exceptions of Buda (up 30 percent year-over-year to 26 home sales), Cedar Park (up 20.7 percent year-over-year to 70 home sales), Leander (up 8.8 percent year-over-year to 62 home sales) and Austin (up 6.4 percent year-over-year to 617 home sales).
“Home sales growth in the city of Austin is currently being driven by the sales of single-family homes priced $750,000 and higher, particularly within the luxury housing market,” added Guthrie.
The median price for single-family homes in the five-county MSA rose 6.5 percent to $287,000 in February 2017. During the same time frame, the monthly housing inventory for single-family homes in the Austin-Rock MSA increased 0.1 months to 2.1 months.
“The Federal Reserve’s decision to raise U.S. interest rates yesterday could dissuade some local homeowners from listing their homes on the market, or potential homeowners from buying a home,” commented Sprague. “Even with this increase, however, there’s still no better time to buy than now. Interest rates are likely only to increase over the next few years. Central Texans will not be able to buy a home for as low of a price and as low of an interest rate as they can today.”
Guthrie concluded: “Whether you’re planning to buy or sell a home, the Central Texas housing market is complex and moves quickly. Working with a Central Texas REALTOR® in advance will give you the expert local market knowledge you need to be fully prepared to make an offer on or sell your home.”
For more information on the February 2017 Central Texas Housing Market Report, go to ABoR.com/statsfeb17.
Info and Graphic courtesy of: The Austin Board of REALTORS® (ABoR)