The most recent market report for Austin area home sales was just released by the Austin Board of Realtors. May’s market report showed continuing trends of rising prices, low supply and strong demand in the Austin market. The median price for homes within the city limits rose to the greatest price ever of $389,000. Outside the city limits, prices continue to rise as well. In the greater Austin area, the median sales price increases 5% year over year to $325,000 last month.
Rising home prices in the greater Austin area continues to make it challenging for many first-time home buyers to purchase a residence in the Austin area. Home prices are increasing at a rate far greater than median family income. Data from the Department of Housing and Urban Development (HUD) shows the Austin-Round Rock median family income increased 17.5 percent from 2013-2018. Over the same time frame, median home prices in the Austin-Round Rock MSA increased 42.5 percent.
With the steady demand for Austin housing, builders struggle to keep up with the steady influx of buyers. Antiquated building restrictions, and an inundated city staff further delay the creation of more housing. As we have seen in past months, buyers are flocking to the suburbs in search of more affordable housing options. In order to encourage the growth of affordable housing within the city limits, there must be changes made to the city’s land code. Conflicts over the City of Austin’s CodeNEXT plan are further delaying the ability for developers and builders to take action towards the City of Austin’s housing crisis.
If you’re interested in learning more about what’s happening in your specific local market, contact me today. I’d be happy to provide a detailed market report for your specific zip code.