Statistics on the Austin housing market show home prices are dropping. The table below shows inventory levels for February of Austin homes in different price ranges. These numbers have improved some from January but more improvement is needed before we can claim a change back towards a stronger market. The local economy is strong in Austin but the housing market is being effected by the tightened credit regulations and the negative psychological atmosphere is the overall U.S. economy.
|
Inventory Levels Based on Home Price in the Austin Area for February 2009
|
|
Home Prices
|
Sales
|
Listings
|
Feb.Inventory
|
Jan.Inventory
|
|
100K-200K
|
510
|
2858
|
5.6 months
|
7.1 months
|
|
200K-300K
|
289
|
2136
|
7.4 months
|
11.5 months
|
|
300K-500K
|
160
|
2035
|
12.7 months
|
14.1 months
|
|
500K-1M
|
54
|
1307
|
24.2 months
|
31.6 months
|
Although the median price of homes is up 5% from one year ago, the average price per square foot is down. Price per square foot is a better measure of the market's health because median home prices in an area can appear to be moving upwards simply because more upscale homes in an area sell than lower quality homes. The price per square foot dropped in almost every area of Austin as compared to one year ago. The only areas with upward movements in price were those areas just east of downtown where large scale renovation has been taking place. Areas with sufficient sales volume showed the following price changes in cost per square foot from last year: Pflugerville -7%, eastern Round Rock -9%, western Round Rock -1%, southwestern Austin -10%, north and northwest Austin -10%, Dripping Springs -15%, Hays County -4%, and Lake Travis -10%.
As I noted last month, I still expect that the housing recovery in Austin will be quicker than most areas of the country and should occur once the credit markets loosen up again. We were one of the last areas to feel the housing price drops and we should be one of the first areas to recover. |
