Original photo courtesy of K. Wudrich.
As we enter the second half of 2014, Austin continues to be one of the hottest real estate markets in the country. New home sales reached a six year high across the U.S. in May, and Austin is right on par with the rest of the nation. According to data released by Metrostudy, Austin builders have been busier than ever clearing new lots and constructing new homes across the area. Austin builders recorded 9,716 new home starts in the past 12 months (June 2013 – June 2014). In the second quarter of 2014 alone, the foundation was poured for 2,688 homes. In a market where low inventory is a top concern, these figures are a positive sign.
Local builders and realtors have stayed busy clearing and selling vacant lots, as well as opening new sections in growing subdivisions. Austin area builders closed over 2,400 homes in the second quarter of 2014 (April – June), which is 10% more than the same time last year. Builders also sold 9,203 homes between June 2013 and 2014, or 14% more than the last 12 months. Summer is the hottest selling period for Austin real estate, so we can only expect that new homes sales will continue to increase as the year goes on. Unlike previous years, there was an increase in vacant developed lots to a total of 6,007 lots cleared in 2014. That means just over 6,000 new homes will be hitting the Austin market in the coming months, with even more homes to follow.
Unfortunately, rising prices have been a theme in Austin’s real estate market. 22% more home starts were recorded in the $500K to $750K price range. Higher development and permit costs have made it more difficult for area builders to build new homes with affordable price tags. That doesn’t mean it’s impossible for Austin residents to find a home in a lower price range. The most affordable homes are most often found outside the central Austin area, in cities like Round Rock, Cedar Park, Leander and Kyle. If you want to know where new homes are being built in the area, our Austin Neighborhoods Guide is a great resource. Of course, your Reilly Realtors agent has all the insider knowledge you need to find your new dream home in Austin’s competitive market. If you have any questions about where to buy a new home in Austin, don’t hesitate to contact us today!