Home Sales Stall in September

Single-family home sales growth in the Austin-Round Rock Metropolitan Statistical Area (MSA) was flat during September 2018. However, according to the Austin Board of Realtors’ (ABOR) market report, year-over-year sales remained high. Sales volume decreased 0.9%, year over year. However, on a year-to-date basis, home sales in the MSA increased 3.6%, compared to the first nine months of 2017.

Lawrence Yun, chief economist and senior vice president of research at the National Association of Realtors, indicated that the flat sales growth in the Austin area could be due to rising interest rates.

“Higher interest rates have cut affordability and are holding back home sales,” Yun said. “But steady growth in jobs and income will boost housing demand over time. Increasing housing supply as reflected in higher housing permits will also help slow home price growth and help consumers.”