The article below appeared last saturday in the Austin American Statesman. It’s good news, but I want to point out a big difference in Austin’s Apartment market and the single family rental home market in Austin.
While new supply of apartments has slowed, creating a tighter supply (the article quotes the 1819 units added this year as the lowest number since 1993), single family homes for rent in Austin continue to be supplied in ample amounts by new investors, which is holding the rents down. Each time an investor buys a home that was previously owner/occupied, or a new home that would otherwise be purchased by an owner/occupant, that adds more supply to the rental home market and gives renters more to pick from. Currently, landlords are still competing for fewer renters than there are homs for rent, which is holding rents down. (October 2005 average single family home rents actually fell from Oct 2004)
November sales up 24 percent from a year ago.
AMERICAN STATESMAN STAFF
Monday, December 19, 2005
The Central Texas resale home market surged in November, with a 24 percent increase in sales and a 15 percent jump in the median price, to an all-time high of $170,000.
Owners sold 1,870 homes last month, up from 1,570 in November 2004. While the home market tends to slow down at the end of the year, November was only 25 sales behind October.
The jumps were good news for sellers, but buyers could be in for a tough time as the supply of homes for sale fell 6.2 percent, to 7,173, the lowest it has been in several years.
A year ago, there were more than 8,300 homes on the market.
Homes are selling especially fast in some areas, including the real estate zones that include Northwest Hills, with an average of 26 days; South Austin, 20 days; North Central Austin, 26 days, close-in East Austin, 26 days, and Southwest Austin, 22 days.
Home market surges even as supply drops; November median price hits an all-time high
Tuesday, December 20, 2005
Central Texas home buyers shrugged off rising interest rates in November, sending sales up 24 percent and the median price to an all-time high of $170,000, up 15 percent. But the supply of homes fell sharply, to a four-year low, and homes in some areas are selling within days, sometimes with multiple offers.
The hot markets include Southwest Austin, close-in East Austin, and South and Northwest neighborhoods. In East Austin, the number of sales is up 146 percent so far this year, and the median price is up more than 40 percent, to $155,000.
SAN ANTONIO (mysanantonio.com, fortune.com)
Texas metropolitan areas are some of the country’s hottest residential markets in terms of projected home price appreciation rates for 2006, according to Fortune Magazine. Fortune worked with Moody’s Economy.com and Fiserv CSW on the analysis of home sales data for the country’s 100 largest metro regions. Three Texas markets ranked in the top ten.
This is from the Austin Business Journal…
“The greater Austin area’s economy is set to grow at a rate of 4.58 percent over the next 5 years, according to a new report.
Details of that report by Waco-based The Perryman Group were revealed Tuesday at a luncheon.
The 5-county metropolitan statistical area will be the fastest growing MSA in the state, says Ray Perryman, president and CEO of The Perryman Group. “We feel very good about the Austin economy right now,” Perryman says.
The 4.58 percent rate is projected compound annual growth rate for 2005 to 2010.
The region’s population will grow from 1.43 million to 1.58 million in the same time period, the report projects.
Personal income will also grow, from $44.96 billion to $55.53 billion. And retail sales will grow from $42.45 billion to $60.25 billion.
“Key locations and expansions in microelectronics in recent years will contribute to strong growth in the information and durable manufacturing sectors over the next year,” the report states. “
Here is a belated posting of my regular monthly Austin Sales and Rental Market Update. I was unable to log into my blog for a couple of weeks and finally determined it was because of a new firewall I installed on my computer. That’s another story entirely…
On to the update:
Homes in Austin are now leasing below the prices of a year ago. Too much inventory is being created by investors. Sales continue to improve and the outlook moving forward is promising. See the graphs below.