Zillow – Austin home price gains are near the top for the U.S.
Second-quarter home prices were up by double-digit percentages in more than 90% of U.S. metro areas.
And Dallas-Fort Worth was one of the markets with a huge year-over-year increase, according to the latest national price report from the National Association of Realtors. And Austin had one of the greatest price increases in the country.
The nationwide median sales price of single-family existing homes rose 22.9% from a year ago in the second quarter to $357,900.
D-FW prices were up 20.6% from second-quarter 2020 to a record $338,700. It was one of the largest year-over-year price gains ever for North Texas in the Realtors’ survey.
Economists keep predicting that price increases will start to moderate.
“Home price gains and the accompanying housing wealth accumulation have been spectacular over the past year but are unlikely to be repeated in 2022,” Realtor’s chief economist Lawrence Yun said in the report. “There are signs of more supply reaching the market and some tapering of demand.
“The housing market looks to move from ‘super-hot’ to ‘warm’ with markedly slower price gains.”
So far there’s no sign of a price cooldown in most metro areas.
The greatest year-over-year home price increases in the U.S. were in Pittsfield, Mass. (46.5%); Austin (45.1%); Naples, Fla. (41.9%) and Boise, Idaho (41%).
Austin’s median single-family home prices now top $515,000 — up from just $315,900 in 2018.
Austin is on track to become the least affordable housing market in the country outside California, according to a new report by Zillow. The assessment is based on average incomes and the amount of money residents must spend on housing in the area.
“Austin in particular has seen monthly payments for new mortgages rising faster than income growth, a trend that has pushed the Sun Belt standout six spots down the affordability ranks over the past year,” Zillow analysts say in a new report. “As of June 2021, Austin is more affordable than eight major U.S. metros.
“But by December, it should surpass Seattle, Miami and New York, leaving only expensive California metros beyond it: San Francisco, San Jose, San Diego, Los Angeles, and Riverside,” the report warns. “Keep in mind, though, that typical home values and sale prices in Austin are still less than half of those in San Francisco and San Jose.”
Zillow says that in June of last year the typical Austin homebuyer spent just under 20% of their income on monthly mortgage payment. By June of this year, the expense had risen to more than 25% and by December on average Austin homebuyers are expected to be required to spend more than 30% of income to acquire a home.
Looking at other major Texas metro areas, prices were up 19.9% in the Houston area and prices in San Antonio were 15.9% higher than in second quarter 2020.
With sharply higher home prices across the country, the monthly mortgage payment on a typical existing single-family home across the country rose to $1,215 and the income a family typically needed to afford an existing single-family home increased to $58,314, according to the Realtors.
“Housing affordability for first-time buyers is weakening,” Yun said. “Unfortunately, the benefits of historically low interest rates are overwhelmed by home prices rising too fast, thereby requiring a higher income in order to become a homeowner.”