Here are the September/2017 MLS single-family statistics for Austin, TX:
Once again, September home sales results looks much like August which looked like July which looked like June, etc, etc. There is no question our Austin home sale market has been slowing down since March of this year….when compared to 2016. 2016 was a good year when compared to 2015, but not spectacular like we saw in 2011-2014. So, our slowing market when compared to an OK year could be construed as even more concerning. However, I am still of the opinion this phase will be more of a cooling off for our market that has been on a very strong run now for over 6 years rather than a true shift to a buyer’s market (ie-over 6 months of inventory). The Austin Business Journal had this article headline today: “Not a downturn, but a dip: Slowing home sales indicate more balance in Austin-area market” and I agree with that assessment. Of course, only time will tell when we will all be “Monday morning quarterbacks” when looking back at 2016 from next year.
For emphasis, here are the numbers for the categories above in September when compared to September, 2012 (5 years ago):
As you can see, with the exception of listings, all other categories are much better than in 2012 which was the first full year of our bull market. Someone who bought a median-priced home in September, 2012 has seen their equity increase by $93,214 ($18, 643/yr, or an average 9.4%/yr appreciation) and an average-priced home’s equity went up by $99,756 ($19,951/yr, or an average 7.6%/yr appreciation). That means the blended rate of median and average home prices in Austin has increased by 8.5%/year the past 5 years! Homeownership has proven to be a great place to park asset money in Austin...especially considering we all have to live somewhere and we might as well pay our own mortgage vs. a landlord’s. As further proof, check out the graphic below which shows that Austin homeowners have achieved $118,118 more in home equity since the national price peak in 2005 (before the recession) than homeowners in the rest of the U.S.
