Population Growth and Low Inventory Drive Competition for Homes
While the housing market has cooled in many major cities since last year, other cities have only gotten hotter. In certain areas of Texas, North Carolina, Colorado and the Pacific Northwest, homes are selling like hotcakes thanks to strong job and population growth, worsening inventory shortages and, relative affordability. Buyers should prepare themselves: These markets are shaping up to be even more competitive than they were in 2013.
Sales Are Speedy and Stable …
As we said last week, Austin, Dallas, Denver, Houston, Portland, Raleigh, San Antonioand Seattle are among the fastest selling markets. In February, a total of 37.9 percent of homes went off the market in less than two weeks in these eight markets, compared with 30.7 percent last year, and 22.5 percent across 27 markets.
Market Speed, February 2014
|Market||Days on Market, Feb. 2014||Days on Market, Feb. 2013||% of Homes Selling in 2 Weeks, Feb. 2014||% of Homes Selling in 2 Weeks, Feb. 2013|
Speed isn’t the only thing that’s impressive. While the overall housing market has seen home sales drop since last year, sales in these eight markets are surprisingly steady given the limited number of homes available for sale. As of February, home inventory in each market had fallen from the year before and was at the lowest point in at least four years. Given the few options available, many of these sales likely comprised brand new homes, which are not listed on the Multiple Listing Service and thus not counted in total inventory.
… Thanks To Jobs and Babies Galore…
Housing demand in these markets stems from strong population growth. These eight markets were among the fastest growing in the nation between July 2012 and July 2013, according to recently released Census data, growing between 1.1 percent and 2.6 percent that year compared with 0.7 percent in the U.S. as a whole.
Populations are increasing in these places in part because of strong job growth.These eight markets have seen job growth of between 2.3 percent and 4.5 percent since last year, far better than the national average of 1.6 percent. More than half of the population growth in each market can be attributed to domestic or international migration.
There are many great Austin area homes for sale. Click here to perform a full home search, or if you’re thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today’s market.
You may also call us at (512) 537-6739 for a FREE home buying or selling consultation, so that we may answer any of your real estate questions.