Half way through 2014 there’s evidence that Austin’s overheated real estate market is cooling. Although over 9,000 homes were sold during the second quarter the total was only slightly higher than during the same period in 2013. At the same time, the average for months of inventory and total number of homes offered for sale are trending upward towards more typical long term values. Finally, the inventory of homes for sale has increased to just under three months, a value associated with a neutral (neither buyer’s or seller’s) market, and is on a steady trend upward. Our personal experience is that we are seeing homes taking longer to sell and and price reductions are becoming more common.
In my opinion these signs of moderation are welcome since a continuation of the previous trends put Austin’s home prices in danger of entering bubble territory. In spite of this apparent moderation we should still see a strong market in Austin for some time to come as the city’s strong job market and positive reputation continue to draw new residents.
If you’d like to see similar information for your neighborhood or have other questions give us a call or email. We’re never too busy to answer your Austin real estate questions.
Source: The Real Estate Center at Texas A&M and The Robillard Group.