Austin Texas New Home Sales Remain Strong in 2015 Leading to Inventory Shortages

In just 4 years the Greater Austin Metropolitan area’s population has expanded from around 1.2 million to 1.9 million people. This has helped lead to a shortage in the number of available homes for sale in many areas of Austin Texas.

Austin Texas, United States – May 13, 2015 /PressCable/ —

Over the last decade the Greater Austin Metropolitan area has seen a steady population growth each year. The population expanded from around 1.2 million to 1.9 million just in the last 4 years alone according to the US Census for 2014.

This has helped to lead to a shortage in the available homes for sale inventory; with most areas of Austin showing less than 6.5 months of available inventory as per the February 2015 Market update from Austin Title.

According to the Real Estate Center at Texas A&M University, 6.5 months of available inventory has been defined to represent a balanced market in regards to supply and demand.

Chester Wilson, Owner of Greater Austin Builders stated “Most of our new construction projects are being sold before completion. It is very common for our projects to have buyers waiting for us to finish up construction and are usually moving in to the home very shortly after we obtain a Certificate of Occupancy.

This shortage in home inventory for most areas of Austin Texas has contributed to an increase in home prices in those areas; with the median home price rising from less than 1% all the way up to 185.03% according to the February 2015 Market update from Austin Title.

When asked what else might be causing the rise in new home prices Wilson explained “the existing home sellers in this market are controlling the pricing. The higher prices that are being paid for development opportunities are coming through on the back-end to the consumer in some way or another. Truly speaking about just new construction in the Central Austin Market, we have so many new requirements in this year alone they are adding to the increase in development costs. You throw in a strained labor market and a fierce buyer pool just trying to buy something, and you’ve got a perfect storm of price increases”.

Even with the increase in home prices, demand remains strong. Chester Wilson continued “For the first part of 2015 the short 3 months we have seen nothing but more and more buyers entering the market. Now that the rain has subsided we expect very strong traffic at all of the open houses throughout the city. The first quarter of real estate in Austin 2015 finished extremely strong.”

When asked whether or not the prices were approaching a ceiling Wilson replied “Since 2011 we have been on a healthy and steady climb for appreciation and setting monthly records for sales and median price increases in most of all the MLS areas. More specifically, anything with an Austin Texas address.”

He concluded by saying “Where the top out is or where the Merry go round stops nobody knows. Each and every month to me is a major victory to the testimony of how sought after Austin really is and being a lifelong “Austinite” it does stir mixed emotions within me. The sense of affordability is being widely stretched by the population explosion and gentrification has been setting in for years. So as long as sellers can get top dollar for their property we will continue to see the move up market and new home development in Central Austin.”

Only time will tell whether this massive growth in population into the city will continue indefinitely or not. If things remain unchanged you should be able to expect the new home prices in Austin to continue to rise as the new homes inventory is further strained.

For more information on real estate or homes for sale in Austin Texas, you can reach Mr. Chester Wilson at 512-663-9096 or visit the Greater Austin Builders website at http://GreaterAustinBuilders.com.

Sources Cited :

1. Chester Wilson – Greater Austin Builders Custom Homes

2. February 2015 Market Update – Austin Title

3. US Census 2014

4. Real Estate Center Texas A&M University

For more information about us, please visit http://GreaterAustinBuilders.com

Contact Info:
Name: Chester Wilson
Email: chester@greateraustinbuilders.com
Organization: Greater Austin Builders
Address: 9108 Laguna Woods Dr., Austin, TX. 78717
Phone: 512-663-9096

Release ID: 79996