Home sales on a tear
May 23, 2006

The Austin residential market is shifting into overdrive.

The latest Austin Board of Realtors report shows single-family home sales were up 12 percent from last year to 2,190 and contributed $517,812,360 to the local economy -- 27 percent more than in April 2005.

But this number is down from March, when almost 2,400 single family houses sold for an increase of 18 percent over the year before.

Single-family properties in the Central Texas area earned a median price of $175,000 in April, up 8 percent from 2005, and up 5 percent from the March median price of $166,500.

"There is no question the Austin real estate market is hot," says Board Chairman John Rosshirt. "Supply is shrinking, particularly in south Austin, which continues to push up prices for residential properties - making Austin a great place to buy and sell homes."

Homes sat on the market for an average of 59 days, which represents both a 20 percent decrease and the first time in two years that number has fallen below 60. Of those homes, 98 percent sold for the list price, which is the largest portion since June 2005.

One reason for the growth "is that the cooling markets in other areas of the country are drawing out-of-state investors to Austin," Rosshirt says.

"Unlike many other markets, where property values skyrocketed in a short period of time, Austin has enjoyed steady growth in real estate values that are more sustainable over the long-term. As this investment continues, we will see a continued increase in the number of properties for rent and a steady appreciation in property values and rent in areas in the north and south parts of town."

The board says that declines across the board in active listings and average days on the market which, combined with increases in pending and total sales, indicate that Austin's appetite for properties is showing no signs of slowing soon.