Austin-Area Home Sales and Prices Continue to Soar in February

In its latest monthly release, the board said 1,783 homes were sold last month, a 2.9 percent increase over February 2015. The median price increased nearly 8 percent to $269,000.

Board officials said the figures point to the need for a regional approach to the area’s mounting transportation issues.

“The challenges facing our region’s infrastructure are approaching critical mass,” said Aaron Farmer, president of the Austin Board of Realtors.

“Austin-area residents are relocating farther and farther outside of Austin due to affordability issues and yet are spending more and more time stuck in traffic each year. With the rate our region’s population is growing, this is simply not sustainable.”

The report said the supply of housing continues to lag behind strong demand, which is being fueled by the region’s job and population growth.

The board said there were more than 2,300 sales in the pipeline to close, signaling another month of higher sales in March.

Gay Puckett, an Austin real estate broker, said she is seeing more multiple offers this month and contracts signed at above the listing price.

“The supply shortage of homes in close-in neighborhoods is causing a feeding frenzy as soon as a house goes on the market,” Puckett said. “My last three listings sold in two, three and five days, with six offers each and over 12 showings. Now that is a hot market.”

Eldon Rude, principal of 360 Analytics, an Austin consulting firm that tracks the housing market, said his firm’s monthly homebuilder survey shows a strong start to the year for the new home market as well, with sales for the first two months of the year up 24 percent over the same months last year.

This article originally published by Real Estate Center at TAMU.