The typical winter slowdown in the housing market seems to have skipped Austin. Median home prices jumped 12.2 percent within the city limits in February — the second straight month of double-digit year-over-year growth, according to the latest data from the Austin Board of Realtors.
The median price for a single-family home in Austin proper hit $367,701 last month.
Across the overall Austin-Round Rock metro, the median price was $299,900 last month, up 4 percent from a year earlier.
Economists had predicted a 5 percent growth in median home prices in the city of Austin last month, according to ABOR.
“We have far surpassed that," 2018 ABOR President Steve Crorey said in a statement. "This is especially evident in local markets where housing demand is strongest, such as Austin and Cedar Park. Home price increases are sharpest in these markets, while dwindling housing inventory in the lower price classes could be discouraging people from buying."
Tight inventories continue to drive up prices. It would take just two months to sell through the current supply of housing in the Austin area. In a balanced market it would take at least six months.
Demand for new housing isn’t expected to ease with more residents moving to the Texas capital every day. But wage growth isn’t keeping pace with home price increases, noted Mark Sprague, state director of information capital for Independence Title Co.
“This population growth is putting additional pressure on local housing markets with already critically low housing inventories, leading to sharp price increases that both homebuyers and new home developers cannot keep up with,” Sprague said in a statement.
Statistics for home sales within Austin city limits.
Here are some other key takeaways from the report:
In the city of Austin, sales volume decreased 6.7 percent from the same period last year, falling to 599 sales — which could be more of a reflection of low inventories at certain popular price points rather than a slowdown in demand. There were just 1.4 month of inventory last month, compared to 1.3 months of inventory in February 2017.Williamson County saw single family home sales increase 13.1 year-over-year to 689 sales last month. The median home price increased 1.1 percent to $275,000.In Cedar Park, sales fell 6.8 percent year-over-year to 69 sales, while the median price increased 12.5 percent to $329,000.Round Rock had a 2.8 percent year-over-year increase in sales and the median price hit $263,840 for a single family home. In Hays County, sales increased 12.1 percent to 222 compared to a year earlier. The median price for a single family home was $255,000.
Statistics for home sales across the Austin-Round Rock metro.