In the third quarter of 2014 sales were slightly lower than the same quarter in 2013, while the number of homes for sale and months of inventory both rose . The combination of these factors would normally result in moderating prices as we saw in the previous quarter, but instead prices were up by almost 9%. My prediction is that the coming quarters will show a return to more sustainable price increases, however time will tell.
To provide some perspective, The Real Estate Center at Texas A&M shows that although home affordability is steadily declining in Austin the current Texas Home Affordability Index of 1.7 is almost identical to the national average of 1.76.
Of course individual neighborhoods may vary significantly from these city wide trends, so if you’re interested in seeing this type of information for your area give us a call or send an email. We’re never too busy to answer your Austin real estate questions.