Austin real estate market remains stable despite expiration of tax credits

AUSTIN, Texas – According to the Multiple Listing Service (MLS) report by the Austin Board of REALTORS®, demand for Austin real estate has remained stable despite the expiration of federal homebuyer tax credits at the end of April.

The volume of Austin home sales in June 2010 was 1,987, down four percent from the same month in 2009. The median price of real estate in Austin increased four percent from June 2009 to $208,750 for June 2010.

“I think this report shows there is life for Austin real estate after tax credits,” said John Horton, Chairman of the Austin Board of REALTORS®. “Sales volume was down only four percent compared to June 2009, which was last summer’s peak month. In addition, the average time it takes to sell a home in Austin decreased for the sixth month in a row. Both of these factors point to long-term stability for our market.”

Despite a decrease in the volume of homes sold in June 2010, the total dollar volume of real estate sold increased six percent compared to June 2009, primarily due to increased demand for properties in higher price ranges.

Chairman Horton explained, “The federal tax credits were most successful in getting first-time homebuyers into the real estate market, with most purchasing ‘entry-level’ homes. This helped existing homeowners purchase ‘move up’ homes, which in turn helped spur activity in higher price ranges.”

In June 2010, homes remained on the market an average of 70 days, a 14 percent decrease from the same month in 2009. In the same time period, pending sales decreased 23 percent to 1,610; new listings increased two percent to 3,287; and active listings increased by 16 percent to 11,749.

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