Hot or Not - Market Update September 2018
We're coming into the fall season which typically slows down for home sales, and today we are looking at where the market is heading in South Austin compared to the City of Austin. For the purposes of this analysis, South Austin is the 6 major zip codes south of 290/71. So this doesn't include 78704 or West Lake which would skew the numbers much higher.
As you can see from the video, the number of sold homes this September compared to last year is effectively the same in Austin, but South Austin dropped by nearly 15%. Active listings since last year have gone up a little though. This indicates that people are asking for higher prices and waiting to get them. Austin as a whole however has fewer active listings, further constraining supply.
Pricing has also gone up as one would expect with lower supply. The mean sales price in Austin is now at $392,000, while the mean sales price in South Austin is $318,000. The averages are higher than that and both are increasing. With Code Next delayed for at least another year or more, and positive demographic pressure coming into Austin, prices will only continue to rise if you want to be in the city. Interest rates are going up as well, so we're not seeing any signs that prices will cool other than seasonally. So it looks like buyers will be paying higher home prices and higher interest rates in the years to come which is certainly likely to cool sales volume as well.
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