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So far, it’s been quite a ride this year, and our nation has truly seen its fair share of hurdles. From COVID-19 to record unemployment and then the resulting recession, just to name a few, the second quarter of 2020 has had more than a few challenges. Amidst the many roadblocks, however, the U.S. homeownership rate rose again, signaling great strength in the recovery of the housing market and an indication that even in a time of crisis, Americans still feel confident about buying a home.

Yesterday, the U.S. Census Bureau announced:

“The homeownership rate of 67.9 percent was 3.8 percentage points higher than the rate in the second quarter 2019 (64.1 percent) and 2.6 percentage points higher than the rate in the first quarter 2020 (65.3 percent).”

The increase is also represented by race and ethnicity of the householder:There are many reasons why the homeownership rate in this country is rising, and one of the key factors is historically-low mortgage rates. Rates hovering at all-time lows are helping to drive affordability and enabling more potential homeowners to enter the market today. According to Ralph McLaughlin, Chief Economist for Haus:

“Mortgage rates are the icing on the cake for households that were thinking about buying…They found an unexpected opportunity during the worst economic downturn America has seen since the Great Depression.”

In addition, many potential homebuyers have been using their time this year to search for homes that offer more space than their current rental apartments. Many of these homebuyers are younger and, as noted by Odeta Kushi, Deputy Chief Economist at First American, are the buyers driving the homeownership rate in an upward direction:

“Big jump in the homeownership rate today, mostly driven by younger households. We saw a spike in the number of owners, and a decline in the number of renters. This is the highest rate of homeownership since 2008.”

This growth is outstanding news for the housing market and for those who have recently found their new homes. If homeownership is on your shortlist this year, maybe now is a great time to meet with a real estate professional to evaluate your current situation. Perhaps historically low mortgage rates can help you to become a homeowner too.

Bottom Line

If you’re thinking of buying a home this year, contact a local real estate professional today to take your dream one step closer to reality.

Filed under: Uncategorized by Olga Gilmore

Looking for something to do in Austin while maintaining social distance – how about going to the movies while floating on the water?  Austin’s idea of a drive up movie theater.

Floating Cinema is coming to Austin for one week starting September 23rd.  This unique cinema is made up of 12 to 24 mini-boats that hold up to 8 people.  Movies are going to be a mix of golden oldies and new releases and there will be free popcorn for all!

You can get more information here:  htps://zip-tickets.com/event/show/floating-boat-cinema-austin-1547164

Filed under: Austin Events by Olga Gilmore

Single-family home sales in the Austin-Round Rock Metropolitan Statistical Area (MSA) experienced strong and steady growth in the first half of this year but declined in June 2018, according to the June & Midyear 2018 Central Texas Housing Market Report released today by the Austin Board of REALTORS®. In the first half of the year, area home prices continued to increase and housing inventory levels slowly declined amidst strong housing demand.

“Despite a decline in home sales volume across Central Texas in June, 2018 is on track to be another record-setting year for the region’s housing market,” Steve Crorey, 2018 president of the Austin Board of REALTORS®, said. “Consecutive years of record-breaking sales activity have set the bar incredibly high, and it’s important to remember that we’re comparing June 2018 figures to that strong activity. The Central Texas housing market remains strong and continues to move at a demanding pace.”

Austin-Round Rock Metropolitan Statistical Area (MSA)
In the five-county MSA, single-family home sales increased 3.7 percent year-over-year to 15,364 home sales, while the median home price increased 4.3 percent year-over-year to $313,000. The volume of homes on the market declined year-to-date, although pending sales activity increased during the same time frame. From January to June 2018, active listings fell 0.8 percent to 5,951 listings; new listings decreased 0.6 percent to 21,795 listings; and pending sales rose 4.8 percent to 17,008 sales. Sales dollar volume in the Austin-Round Rock MSA was $6,025,035,605—an 8.2 percent increase from the first six months of 2017.

In June 2018, single-family home sales activity declined 2.7 percent year-over-year to 3,299 sales. During the same period, the median price for a single-family home rose 4.9 percent year-over-year to $326,250. Monthly housing inventory decreased 0.1 months year-over-year to 2.9 months, well below the Real Estate Center of Texas A&M University’s benchmark of 6.0 months as a balanced housing market. While home sales decreased across the MSA in June, this is not indicative of a declining housing market, suggested Jim Gaines, chief economist at the Real Estate Center at Texas A&M University.

“The Central Texas housing market is among the top three in the country. The region’s population growth, particularly along the I-35 corridor, is fueled by diversified economic opportunities that bring jobs, new businesses, and resources across multiple industries,” he said. “Strong population growth and home sales activity are expected to continue in the Central Texas region for the rest of the year and into 2019.”

City of Austin
In the city of Austin, single-family home sales in the first half of the year edged upward 1.3 percent year-over-year to 4,757 sales and the median price for a single-family home increased 3 percent to $375,760. During the same period, active listings decreased 10.1 percent to 1,279 listings; new listings decreased 3.9 percent to 6,458 listings; and pending sales rose 2.7 percent to 5,248 sales.

City of Austin home sales have not experienced a year-over-year decrease in the month of June since 2013. Austin home sales decreased 4.5 percent to 988 home sales and median price dipped 0.4 percent to $388,000. Housing inventory also decreased 0.3 months to 2.1 months of inventory. However, homes spent six fewer days on the market in 2018 than the previous June, averaging 30 days on the market.

Travis County
In Travis County, single-family home sales increased 3.8 percent year-over-year to 7,675 home sales in the first half of the year. During the same time frame, the median price for single-family homes grew 3.6 percent to $362,500. Active listings decreased 6.1 percent to 2,796 listings; new listings decreased 1.2 percent to 10,977 listings; and pending sales increased 6 percent to 8,587 sales.

In June 2018, single-family home sales decreased 2 percent to 1,651 home sales, while median price increased 1.2 percent to $374,500. Monthly housing inventory decreased 0.2 months to 2.8 months of inventory.

Williamson County
In Williamson County, single-family home sales in the first half of 2018 increased 5.2 percent year-over-year to 5,333 home sales. During the same period, the median price for single-family homes increased 3.7 percent to $286,900. Active listings increased 5.2 percent to 2,033 listings; new listings decreased 0.8 percent to 7,303 listings; and pending sales rose 4.7 percent to 5,832 sales.

In June 2018, single-family homes sales dipped 1.7 percent year-over-year to 1,143 sales, while the median price rose 4.7 percent to $300,000. During the same time frame, housing inventory declined 0.1 months to 2.8 months of inventory.

Hays County
In the first half of 2018, Hays County single-family home sales rose 2.6 percent year-over-year to 1,721 home sales, while median price increased 3.3 percent year-over-year to $264,900. New listings increased 2.2 percent to 2,536 listings and active listings increased 1.9 percent year-over-year to 799 listings. During the same time frame, pending sales rose 4.4 percent to 1,907 sales.

In June 2018, single-family home sales decreased 7.1 percent year-over-year to 369 sales, while median price increased 7.5 percent year-over-year to $284,900. During the same time frame, housing inventory increased 0.1 months to 3.4 months of inventory.

Filed under: Real Estate News by Olga Gilmore

The Austin area has a higher percentage of million-dollar homes than any other major Texas city.

Ranking 11th in the country, 2.16 percent of homes in the Austin metro are priced at $1 million or more, according to a new report by LendingTree.

That was higher than Houston (1.52 percent, No. 14 in the nation), Dallas (1.31 percent, No. 18) and San Antonio (0.41, No. 39).

LendingTree also clocked the Austin area’s median home value at $282,000, compared with $192,000 in Houston, $213,000 in Dallas and $191,000 in San Antonio.

Luxury homes of $1 million or more typically take longer to sell. According to the 2017 Texas Luxury Home Sales Report by the Texas Association of Realtors, last year there was an inventory of 6.6 months for Austin homes priced in the seven figures — the highest inventory of any price class.

The Austin Board of Realtors recently reported the median value of a single-family home in the Austin area hit $325,000 in May, suggesting that LendingTree may be underestimating the price of Central Texas homes.

LendingTree ranked the country’s 50 largest metros based on the 155 million properties in its database of property values. San Jose, Calif., had the highest percentage of million-dollar homes at 53.81 percent and a median home value of $1,069,000, followed by San Francisco with 40.03 percent and a median value of $891,000.

The LendingTree report highlighted the rising home affordability crisis in California: Los Angeles and San Diego also had more than 10 percent of their homes priced at $1 million or more.

Check out below a gallery from last July of what $1 million could buy in various parts of the Austin market.

Info courtesy of Austin Business Journal

Filed under: Real Estate News by Olga Gilmore

Decreasing housing inventory paired with strong demand continues to drive Austin’s growing affordability crunch, according to the May 2018 Central Texas Housing Market Report from the Austin Board of REALTORS^® (ABoR).

In the city of Austin, the availability of housing compared with demand — as measured through inventory — continues to be historically low while median home prices have reached historic heights.

The median price for single-family homes in the city of Austin increased 3.7 percent year-over-year to $389,000 in May, an all-time high for the city. While home sales rose 5.9 percent to 1,037 sales, housing inventory decreased from 2.1 months last year to 2.0 months during the same time frame. There were fewer active listings as well, as the amount of homes available on the market decreased 6.8 percent to 1,533 listings.

The growth in housing prices in the city of Austin also has implications for the Central Texas region at large, where home prices continue to rise amidst tight inventory. In May 2018, seven in 10 homes sold within the five-county MSA were sold outside of Austin city limits.

In the Austin-Round Rock MSA, home sales rose 4.2 percent year-over-year to 3,210 sales in May 2018 and housing inventory decreased from 2.8 months last May to 2.7 months this year. During the same time frame, the median home price increased 4.8 percent year-over-year to $325,000.

Filed under: Real Estate News by Olga Gilmore