The Central Texas housing market kicked off 2018 showing continued strength, with home sales and the area’s median sales price both at record highs for the month of January, the Austin Board of Realtors said Thursday.
January’s year-over-year increases came despite a housing supply crunch, signaling that 2018 could be another strong one for the local market, the Austin Board of Realtors said.
For the seventh year in a row, the Central Texas housing market in 2017 set records for both the number of sales and the median sales price, which rose to $299,900, up 5.4 percent over 2016.
The metro area saw 1,655 home sales in January, the board said, a 8.5 percent increase over January 2017. Half the homes sold for $290,000 and half for less, for a 3.6 percent increase in the median sales price. Both figures were records for a January, the board said.
“In 2018, Central Texas’ housing market will continue to see an increase in both sales and price, despite inventory levels remaining low,” said Jim Gaines, chief economist, Real Estate Center at Texas A&M University. “The housing demand and lack of inventory is so great, that if supply does not increase, we could see a upwards of 5 percent growth in median home prices within the Austin-Round Rock (metro area). Inventory will be a determining factor in the direction of this year’s market.”
The board said the supply of single-family homes in Central Texas remained at 1.9 months, the same as January 2017. That level is well below the supply of six to 6.5 months that experts say is a balanced market, tipped in favor of neither buyers nor sellers.