Austin-area home prices set August record, outpace household income growth in August 2015
AUSTIN, Texas – September 22, 2015 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), Austin-area single-family home sales remained high in August, increasing eight percent to 2,943 home sales compared to August 2014. Austin-area single-family median home prices, for both sales and leasing, set a record for the month of August. Median home sales prices increased by eight percent year-over-year to $265,000, while median home lease payments increased by seven percent to $1,600.
Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “As Austin REALTORS®, we’ve seen our city expand in ways we never could have imagined, but household incomes have not been expanding at the same rate as the cost of living in Austin. We will continue working with our city’s leaders to find a solution to the complex affordability issues, with the end of goal of providing affordable and diverse housing stock for our growing population that aligns with the actual incomes of Central Texas residents.”
Recent data from the U.S. Bureau of Labor Statistics shows that approximately 65 percent of Austin-area professionals made less than $50,000 in 2014. Additionally, the City of Austin’s 2014 Comprehensive Housing Market Analysis cited that affordable housing costs should be less than 30 percent of gross monthly income.
That means for residents making $50,000 per year, a mortgage payment translates to $1,250 per month and would fall in a home sales price range of $200,000–$215,000. To compare, the August 2015 median home price was $265,000 and the median lease payment in Central Texas was $1,600.
Simultaneously, median home prices continue to rise and have increased by more than 30 percent from August 2010 to August 2015, a $65,000 difference over the last five years.
Average home price increased six percent compared to August 2014 to $329,620. Total dollar volume continued to rise year-over-year to $970,071,660, increasing by 15 percent.
Monthly housing inventory decreased by 0.1 months compared to August 2014, remaining flat at 2.9 months. This number is still well below the Real Estate Center at Texas A&M University’s balanced housing inventory level of 6.5 months.
New listings increased two percent to 3,364 listings and active listings increased by four percent year-over-year to 6,979 listings. In addition, pending sales increased 11 percent to 2,686 single-family home sales. Homes remained on the market for 42 days in August 2015, the same length of time as in August 2014.
Cooper concluded, “This new report from the Bureau of Labor Statistics provides further evidence of the affordability issue in Central Texas. The growing disparity between rising home prices and what Austin residents can afford, combined with low inventory levels, will continue to drive residents outside of Austin’s city limits to buy a home, putting further strain on our region’s infrastructure and resources.”
August 2015 Statistics
- 2943 – Single-family homes sold, eight percent more than August 2014.
- $265,000 – Median price for single-family homes, eight percent more than August 2014.
- $329,620 – Average price for single-family homes, six percent more than August 2014.
- 42 – Average number of days single-family homes spent on the market, unchanged from August 2014.
- 3,364 – New single-family home listings on the market, two percent more than August 2014.
- 6,979 – Active single-family home listings on the market, four percent more than August 2014.
- 2,686 – Pending sales for single-family homes, 11 percent more than August 2014.
- 2.9 – Months of inventory* of single-family homes, 0.1 months less than August 2014.
- $970,071,660 – Total dollar volume of single-family properties sold, 15 percent more than August 2014.