March 22, 2017 (STLRealEstate.News) Has activity finally peaked in the highly sought after Austin market? Flat sales as of recently have indicated a cooling trend in the Texas metropolis. February displays a market correction after two straight years of record Central Texas home sales. Single-family home sales across the metro inched up 0.9 percent to 1,829 last month, compared with the same month a year prior, stated the Austin Board of Realtors in a release put out this past Tuesday. At the same time, it is worth noting that home inventory is still historically low at 2.1 months, up form 2 months in February 2016. Real estate experts state that a supply of at least six months is what’s required for having a healthy balance between supply and demand.
Sales volume decreased year-over-year in many area cities last month. Austin’s home market is just finally beginning to catch up with itself, experts proclaimed this week. “The Central Texas housing market is just now beginning to slow after years of unprecedented sales growth,” said Brandy Buthrie, the 2017 president of the Austin Board of Realtors. “It’s important to remember that current figures are being compared to very strong housing market activity in 2016, so a decline in home sales growth does not automatically mean that the market is softening.”
Others proclaimed that local market trends could also be affected by national monetary policy with the Federal Reserve’s decision to raise the benchmark interest rate, which will subsequently increase mortgage rates in the short term. These rates will slowly creep up throughout the rest of 2017, definitely deterring some home-buyers away from areas that were a budget reach.
Despite the changes, homes still remain relatively affordable in Austin, despite the massive demand. It will be interesting to see if Austin joins the likes of Boston, New York, and San Francisco in upcoming years.