If you're a local Austin real estate agent, you know how popular our neighborhoods have become. They're weird and trendy and there's a lot to love about our area. But, all of this popularity comes at a cost.
As sales increase, inventory is struggling to keep up which causes price tags to increase as well. Here's what you need to know about the Austin Board of Realtor's September 2019 update.
Home sales in Central Austin had a double-digit increase
Going up by 13%, the Austin area saw 2,654 homes sold in September 2019. Even after accounting for the summer selling season, this fast pace is swallowing much of the housing inventory.
The only Austin county to see a decrease in home sales was Bastrop County but they still have shown an increase in new, active, and pending listings on the books. Plus, on average, an Austin home spent 49 days on the market which is down by about a week. This is about two and a half weeks less than an average home stays on the market in the U.S.
In short, when a house goes up for sale in Austin, they go fast.
The median price of a single-family home in the city of Austin is now $406,000.
This number is an 11.9% increase making it the record of any previous September in the city. Median prices in the Austin area as a whole aren't as steep as they are in the city but they're certainly up there at $320,000 with a 7% increase.
Austin has become one of the most desirable cities in the U.S. to live and the real estate prices reflect that fact. Affordable housing in Austin is incredibly hard to come by now that demand outweighs supply and this increasing imbalance reflects a real problem in the market.
Austin's lack of inventory is a growing problem.
While real estate agents are likely enjoying their commissions, it will become harder and harder to sell homes in this area because there will soon be no homes to sell.
In September, months of inventory went down by 0.4 months with an average of 2.5 months. Long story short, it's very busy in the Austin real estate market at the moment, which is certainly exciting. But the popularity of Austin has affected all of the neighboring areas and Central Texas as a whole making housing less and less affordable.
Rewriting land-use code is necessary for new housing solutions.
To combat the housing inventory problem in Austin, Emily Chenevert, CEO of the Austin Board of Realtors said that more flexible code is needed to increase housing in the area.
"Rewriting the land-use code is a huge opportunity to improve the imbalance in our housing market and manage our growth," she said.
Her goal is to embrace the unique character of Austin by promoting all types of housing throughout the city without infringing on the current property rights of existing owners.
Hopefully, with coding rewrites that allow for new constructions, more affordable housing is on the horizon for Austin buyers. For real estate agents, it's important to have a variety of price points for your clients and even with a booming market, experts want more balance in this area.
As we've continuously seen in recent years, Austin's popularity doesn't seem to be going anywhere. Even with housing prices skyrocketing, sales are skyrocketing right along with them. People continue to pay top dollar for what our amazing neighborhoods have to offer.
Still, you'll want to stay on top of the new changes happening as land-use code rewrites seem imminent.
Surely, some of your clients can feel stuck in such a housing market. Empty nesters don't need their big house but also don't want to pay high prices for a smaller home. Young couples continue to rent because even with two incomes, ownership is still out of there reach.
At UpEquity, we want to find win-win solutions for everyone involved. Our rates give buyers and sellers the certainty of dealing with cash with the flexibility of a mortgage.
Contact us today for more information. By referring your clients to UpEquity, you can expect faster, more manageable home-buying solutions even in a fast-paced market as we have here in Austin.