Austin-area home sales dropped 3 percent in July compared with the same time last year, the first such drop in more than three years, the Austin Board of Realtors announced Aug. 21.
Home sales have not decreased since May 2011, according to ABoR, which credits a strong July 2013—the highest monthly home sales month in Austin's history—for the decreased production.
"We knew it was going to be a tough month to beat," ABoR President Bill Evans said in a written statement. "However, there's no denying that the Austin-area housing market has been impacted by issues in inventory and affordability."
With demand still above average, Evans said the Austin-area housing market needs more housing stock that is affordable to the average homebuyer. The amount of available housing increased slightly in July—the first such increase in more than three years—to three months worth of housing inventory. ABoR credits a 12 percent increase in active home listings and an 8 percent increase in new listings for the modest 0.2 percent jump in housing inventory.
According to the Texas A&M University Real Estate Center, the ideal housing stock for a well-balanced market is six months, twice that of Austin's current status.
July 2014 ABoR statistics
2,944—Single-family homes sold, 3 percent less than July 2013.
$250,000—Median price for single-family homes, 9 percent more than July 2013.
$318,854—Average price for single-family homes, 7 percent more than July 2013.
39—Average number of days single-family homes spent on the market, two days fewer than July 2013.
3,788—New single-family home listings on the market, 8 percent more than July 2013.
6,859—Active single-family home listings on the market, 12 percent more than July 2013.
2,660—Pending sales for single-family homes, 4 percent less than July 2013.
3.0—Months of inventory of single-family homes, 0.2 months more than July 2013.
$938,706,176—Total dollar volume of single-family properties sold, four percent more than July 2013.
The following sections describe trends in other sectors of the Austin-area real estate market.
Townhouses & Condominiums
The volume of townhouses and condominiums (condos) purchased in the Austin area in July 2014 was 336, which is four percent less than July 2013. In the same time period, the median price for condos was $204,000, which is 12 percent more than the same month of the prior year. These properties spent an average of 37 days on the market, 10 days fewer than July 2013.
Leasing
In July 2014, a total of 2,110 properties were leased in Austin, which is five percent more than July 2013. The median price for Austin-area leases was $1,500, which is seven percent more than the same month last year.
