Area home sales hit two-year low

Despite decline in January, analysts predict Central

Texas' market will remain strong.

By M.B. Taboada
AMERICAN-STATESMAN STAFF
Wednesday, February 21, 2007

Home sales in Central Texas hit a two-year low in January, according to a new report from the Austin Board of Realtors.

Sales of preowned single-family homes fell 6 percent in January from the same month a year earlier, to 1,452 homes. But the median price climbed to $175,000, up nearly 5 percent from the same month a year ago, the board reported.

The sales figures were the lowest since January 2005, when 1,336 homes were sold. January is traditionally a slow month for home sales, and an ice storm cut into house shopping last month.

Despite the January dip, the region is still defying the cooling housing market that has affected other parts of the country, and analysts expect the trend to continue. Local real estate agents as well as experts from Texas A&M University's Real Estate Center have predicted that Central Texas' housing market in 2007 will be as strong, if not stronger, than last year's.

Pending sales of single-family homes rose 12 percent from a year earlier to 2,168. This indicates that sales might rebound in February.

"Demand in Austin will be strong," said Sam Carroll, a broker associate with ReMax Downtown Austin. "The interest in downtown and the metro area in general continues unabated."

Carroll said he is seeing a shift in buyers, with more of his clients coming from the East Coast rather than the West Coast. But "the end results are the same, left coast or right coast," he said. "They are all focusing on mid-America now, and Austin is one of the bright spots." Homes remained on the market for an average of 76 days in January, down a day from the year-earlier period. But homes in some areas including Cherry Creek, Sendera, Great Hills and Balcones Woods were selling much more quickly at higher prices. Homes in the suburban north, northwest and southwest also showed strong sales.

Townhomes and condominiums also did well in January, with 159 sold, up 21 percent from the same month last year. Pending sales of town-homes and condos, at 240, were about 22 percent higher year-over-year.

Potential home buyers seeking less-expensive homes are faced with a shrinking supply as values rise. The greatest number of homes sold in January were in the $200,000 to $399,000 range.