The Austin housing market continues to improve with home prices rising once again in most local areas while median days on market continue to decline overall. With a lack of inventory, year-to-date and monthly total unit sales have dropped in several areas, but not for a lack of buyers. Every day we see home buyers fighting in multiple offer situations to get their dream home because the number of available homes for sale is so low.
Based on statistics released by the Austin Board of REALTORS®, we saw a continued trend towards a stronger seller’s market in some of the more popular Austin suburbs. The following data covers Round Rock, Pflugerville, Georgetown and Hutto. If you’re interested in updates on additional local areas, let us know and we’ll be happy to create a report for you.
In March 2014, the total number of homes in east Georgetown rose 58.6% due to an increase in activity while home sales in west Round Rock decreased 8% and Pflugerville home sales decreased 4.8% year-over-year because fewer homes are actively listed than this time last year. Year-to-date numbers follow a similar trend with east Georgetown making huge strides in home sales while west Round Rock is seeing fewer sales so far in 2014 than last year.
Median sales prices have increased in all the suburbs we’ve looked at with Georgetown overall seeing the highest year-over-year growth with a 39.9% spike in price on the east side and 25.7% spike on the west side while east Round Rock has only saw a minor spike in median home prices of 1.2% in March. This smaller spike can be best explained by the size of homes being put up for sale. The homes sold in east Round Rock during the month of March were, on average, over 100 square feet smaller than the same time period last year. Though the area saw a smaller gain in total median price, the total median price per square foot rose a more moderate 7.8% to $98 per square foot compared to $91 in 2013.
On the other hand, east Georgetown homes sold in March averaged over 300 square feet more than last year, providing some context to the large spike in prices. With that said, median price per square foot still rose 17.9% to $105 per square foot compared to $89 in 2013. The different in size was even more drastic on the west side of Georgetown with homes averaging over 400 square feet more in March 2014 than the same month last year. Median price per square foot rose 10.9% to $133.
The other areas studied, including west Round Rock, Pflugerville and Hutto, all saw moderate median price increases from 3.4% to 9.8% and median price per square foot increases ranging from 10.2% to 16.8%. These numbers support strong growth in the market and continue a trend expected to go even further during the hot buyer months of the summer.
One other interesting fact about the current market is how quickly homes are selling. All of Round Rock as well as Pflugerville, Hutto and east Georgetown is seeing homes go under contract within a month of listing. In some areas such as Pflugerville and west Round Rock, homes are on the market for just over a week before going under contract with the median for both those areas being just 8 days on market. These are year-over-year decreases ranging from 14.3% to 66.7%. It doesn’t seem like homes could sell any more quickly and yet it seems like they do with each passing day.
The one exception is west Georgetown. Considering homes in this area go for a higher price, the buyer pool is smaller and the median days on market is nearly two months at 58 days. This is more than double the time it took for a house to go under contract in the area in March 2013, but as previously stated that area is seeing larger homes being listed for much higher prices.
Overall the numbers are showing what we’ve been seeing on the front lines: homes are selling faster while prices slowly edge up as we head towards the peak buying season. This is especially true for destination neighborhoods where the inventory is very slim and the buyer demand is high. These are trends that we can expect to continue in the near future, especially if inventory continues to stay low and the number of people relocating to the area continues to grow.
If there is an area you’re specifically interested in that we haven’t covered, let us know in the comments and we’ll dive in deeper for you.