According to the Austin Board of Realtors, home sales declined in July for a second time this year (the first time was in January). While Austin home sales dropped, prices continued to rise which could be one reason why there weren’t as many buyers entering the market. Sales might have been cooling off in Austin, but compared to the U.S. they were relatively hot selling 20 days faster than the U.S. overall.
Breakdown of Single-Family Home Sales by Area
- Central Texas
- Median price increased 6.1% yoy to $260,000
- Home sales decreased 3.1% yoy
- Austin-Round Rock 5-county Metropolitan Statistical Area
- Median price increased 5.6% yoy to $285,000
- Homes sales decreased 4.9% yoy
- City of Austin
- Median price increased 4.6% yoy to $345,000
- Home sales decreased by 7.3% yoy
This Is Not a Sign of an Unhealthy Housing Market
Last month’s dip in home sales does not imply that Austin’s housing market is unhealthy. In fact, it’s more likely an indication of a healthy re-adjustment for long-term stability in Austin. The summer of 2015 was the strongest selling season in this region’s history and it would be unhealthy to keep up at that pace. Arguably, the frantic pace at which Austin’s housing market was climbing could also be one of the reasons why it turned off a lot of buyers who were frustrated from buyer fatigue, constantly up against multiple offer situations.
There are many reasons why sales could have dipped in July–from the anticipation of an election year to reduced home showings because of the heat–but an unhealthy housing market is not one of them.
Multiple Reasons Why Home Sales Dipped in July
- Reduced calendar days to do business – This July there were only 20 calendar days to do business since it spanned 5 weekends and July 4th holiday
- Austin’s 100-degree weather – the heat makes home showings less enticing
- Increasing prices means homes are less affordable – higher home prices reduces the number of buyers on the market
- Buyer fatigue – bidding wars over the past few years have frustrated a lot of buyers
- Buyers are less frantic – buyers are spending more time making the right decision
- Macro-economics including anticipation of an election year, instability of the stock market and anticipation that mortgage rates might decline further post-Brexit could also have influenced buyer decisions
Great Time to Sell
Now is a great time to sell to take advantage of these record-high home values. Homes are also selling 16 days faster than this time last year, so make sure you work with an agent who knows the market and can price your home right the first time. Our agents are hired for their experience and know how to price right to get the most attention to your home.
Great Time to Buy
Don’t let the increasing prices scare you. Our agents are highly skilled in negotiation and work on your behalf to get the best price for you so you don’t overpay. While inventory is still tight, our agents have access to off-market listings and can send you new ones every week. Avoid buyer fatigue by contacting us today and we’ll help you navigate this intricate market.
- Austin Housing Market Ranks 2nd Most Stable in America
- Texas Tops Best Places to Live and Work
- Austin Ranks No. 2 Best Places to Live