Half the homes that sold across the Austin metro in May 2016 went for more than $288,085, and half for less, up 4.8% year over year. The 30-year fixed averaged 3.6% that month. Homes took a median of 16 days to sell. That made it a seller's market.
Austin market statistics, May 2016
| Metric | May 2016 |
|---|---|
| Median sale price | $288,085 (+4.8% YoY) |
| Median price per sq ft | $137 (+4.5% YoY) |
| Homes sold | 2,851 (+10.6% YoY) |
| New listings | 3,543 |
| Active inventory | 5,907 (+3.5% YoY) |
| Months of supply | 2.1 |
| Median days on market | 16 |
| Sale-to-list ratio | 99.1% |
| Sold above asking | 29.5% |
| Listings with a price cut | 30.0% |
| 30-year fixed rate (avg) | 3.6% |
Uber and Lyft Are Gone. What That Does to a Commute Conversation
Proposition 1 failed on May 7 and both companies stopped operating in Austin within days, leaving the council's fingerprint rules in force and the city without the two services most relocating buyers assume are simply present everywhere.
What changed since April 2016
The median fell $1,915 from April 2016, a 0.7% move. Time on market shortened by 1 days, to 16. Active inventory grew by 177 listings, to 5,907. The share of homes selling over asking gave up 0.7 points, to 29.5%.
One month is noise. The reason to read it anyway is that direction shows up in inventory and days on market well before it shows up in price, so the months where those two disagree with the headline number are the interesting ones.
Where this month sits in the cycle
| May 2016 | April 2016 | May 2015 | Since Oct 2016 | |
|---|---|---|---|---|
| Median sale price | $288,085 | $290,000 | — | — |
| Median days on market | 16 | 17 | — | — |
| Active inventory | 5,907 | 5,730 | — | — |
| Months of supply | 2.1 | 2.3 | — | — |
| Sold above asking | 30% | 30% | — | — |
| 30-year fixed rate | 3.6% | 3.61% | — | — |
The right-hand column is the range this series has covered since October 2016. No forecast in it, just where May 2016 falls against every month that came before it.
If you are buying in Austin right now
2.1 months of supply is a seller's market, but not a chaotic one. Good homes priced correctly move in the first weekend; anything still sitting after three weeks has a reason, and finding out what it is before you offer is the whole job.
The average sale closed at 99.1% of list, essentially at asking. The negotiation in a month like this happens on price cuts before you arrive and on repairs after you are under contract, not on the headline number.
The payment math. At $288,085 with 20% down at 3.6%, principal and interest runs about $1,048 a month. Add roughly $480 for property taxes and $192 for insurance and you are near $1,720 a month all in. Texas has no state income tax and this is where the state collects instead, budget the tax line from day one, not as an afterthought.
If you are selling: you have the leverage, and the mistake available to you is overpricing into it anyway. Homes were selling in 16 days. A listing that sits three weeks in this market has told every agent in town that something is wrong, and you will end up taking less than if you had priced it right on day one.
Neighborhood in focus
Northwest Hills (78731). Highland Park, Mesa Park. Known for quiet, large lots, family neighborhoods. It fits families who want space and a central location.
The metro numbers above are an average of a very unequal city, Northwest Hills does not move in lockstep with Kyle or Leander, and the gap between ZIPs widens in exactly the months the metro looks calm. There is a longer, more honest write-up at /neighborhoods/northwest-hills/, including what is wrong with it.
On in Austin, May 2016
| When | What | Why it matters to a listing |
|---|---|---|
| May 7–8 | Pecan Street Festival (Spring), Sixth Street Historic District | Sixth Street closes to traffic for the weekend. Downtown and the eastern edge of 78701 are slow; everywhere else is unaffected. |
What is coming next
Local and nonprofit operators are standing up to fill the gap. Whether they cover the whole city or only the parts that were already easy to serve is the question worth watching, and it bears directly on which neighborhoods feel car-optional.
Common questions
What are the best neighborhoods in Austin for families?
It depends on what you are optimizing for, and anyone who answers without asking is selling you something. Broadly: Circle C, Steiner Ranch and Avery Ranch for space and schools; Mueller, Crestview and Brentwood for walkability with a yard; Westlake and West Lake Hills for Eanes ISD if the budget reaches; Hyde Park and Bryker Woods for older homes near central. There are honest write-ups of nine of these at theaustinlocalgroup.com/neighborhoods, including the parts that are not flattering.
Is it a good time to buy a house in Austin?
Depends entirely on your timeline. At 2.1 months of supply you are competing, paying up, and giving up contingencies. If you need to be in a house this year, you buy and you accept the terms. If you can wait, understand that you are paying a premium for urgency.
How much are property taxes in Austin?
Combined city, county, school district and community college rates in the Austin area generally land between about 1.8% and 2.5% of assessed value, and higher inside a Municipal Utility District, where 3%+ is possible. There is no state income tax in Texas, and property tax is the trade. Two things every buyer should do: file a homestead exemption by April 30 of the year after you close, which caps annual taxable value increases at 10%, and check whether your target address sits in a MUD or PID before you finalize your budget.
What should I know about flooding before buying in Austin?
Central Texas is Flash Flood Alley: thin soil over limestone, steep terrain, and storms that stall. Austin models its own floodplain, which is often stricter than FEMA's, so a house can sit outside the FEMA 100-year map and inside the city's. Standard homeowners insurance does not cover flood, NFIP policies take 30 days to take effect, and plenty of local flooding happens outside mapped floodplains. Pull both maps and get a flood quote during your option period.
Part of a retrospective series on the Austin market, one post per month since 2016, compiled from the historical record. This edition covers May 2016; every figure is as reported for that month, and nothing in it looks past it.
Source: Redfin Data Center metro market tracker: single-family, Austin-Round Rock-San Marcos metro, not seasonally adjusted. Mortgage rates are the monthly average of the Freddie Mac Primary Mortgage Market Survey 30-year fixed rate. Payment, tax and insurance figures are estimates for illustration and are not a quote. Median sale price is not a guarantee of value for any specific property.
Written by Mike Vilece, a licensed Texas real estate agent with Compass in Austin. If you want the version of this that applies to your street and your budget, ask me directly.