Latest market data reveals that Austin has topped the list of real estate markets where homes stay shortest in the market, according to a report on Kxan.com.
The report said that 40 percent of homes in the Texan capital stay on the market for less than seven days. The nationwide average is 10 days, the report added.
Rising sales prices are not stopping buyers from grabbing a piece of Austin real estate even if prices are $60,000 higher than average sales prices in neighboring cities such as Dallas, Houston and San Antonio.
Bradley Pounds, Watters International Reality sales manager, said the city has seen a 10 percent price increase this year. The price hike will become lukewarm soon, but is expected to pick up steam again in 2015.
“The double digit increases may not continue, however, there will be a significant price increase in 2015,” Pounds told Kxan.com.
Citing data from The Austin Board of Realtors, BizJournal reported that while sales in July were down by 3 percent from last year, median home prices rose 9 percent to $250,000. Meanwhile, average home prices were up 7 percent from over a year ago to $318,856.
Listings site Zillow, on the other hand, estimated median home values in the city rose 13.4 percent during the past year to $216,900.
It also forecasted slow but steady growth in valuations through 2015 at 5.1 percent, twice faster than the nationwide average at 2.7 percent.
Relocating households are driving growth to the city, according to Kxan.com. Ryan Robinson, the city demographer, said 110 people relocate to Austin on a daily basis.
April data from the Planning and Development Review Department showed that 865,504 currently reside in Austin. It also said that the Austin-Round Rock metropolitan statistical area has a population of 1,926,998.
An increased housing demand in the central city is also dominating trends in the Austin real estate market, leading to new smaller condo and townhome developments, according to the department.
The department said site plans for these units accounted for a majority of the submissions for review for multifamily dwellings.
Meanwhile, the department also noted that while it received fewer units for review during the second quarter of this year compared with 2010’s figure, the quarter has the most number of projects submitted. 850 units embedded within 20 new projects are currently under review.
Aside from these soon-to-be constructed units, 2,400 units received entitlements during the quarter, while over 2,500 units are currently under construction. Another 2,000 units have just been “delivered to what is still widely considered to be a landlord’s market,” the department said.
However, it is still too early to tell if there is going to be a surplus of homes, the department said.
“The next few quarters will finally tell the tale of whether or not we're headed toward a product glut, at least in terms of learning just how deep Austin's ultra-luxury rental market truly is,” Robinson said.
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