This is just a quick update. Earlier this week I wrote about how home values in Austin compare to those in cities that comprise the S&P Case-Shiller 10-City and 20-City home price indices. At that point, the lastest Case-Shiller data available was for April 2011. Now we have one more month’s information.
My previous discussion (see Ausin continues to outpace Case-Shiller) remains valid, so I’ll just offer this chart showing year-over-year changes in home values:
One month further on, it is still true that the home price indices are falling compared to last year. The only city in Texas that is included in those indices is Dallas, and prices there declined again in May as well.
Austin and Washington, DC, however, continue to buck the trend, gaining value year-over-year. As I pointed out in my last post, the magnitude of the gain in Austin remains impressive, even compared to Washington, DC.
Sales volume remains soft in Austin and Central Texas, but listing inventory continues to adjust to allow a healthy balance. Moreover, distressed sales (short sales and foreclosures) remain a much smaller portion of our market activity than in most Case-Shiller cities. Combined, those factors translate into a market environment in which sale prices, on average, continue to rise.
Austin and Central Texas real estate markets will certainly benefit from a broad recovery of the economy and real estate nationally, but we continue to create jobs and attract new residents, and that’s good for everyone concerned here.