Austin home sales spike in October

The number of Austin homes sold in October 2012 represents a significant gain for the local economy and could influence many property buyers' decisions. People who are considering some of the homes for sale in Austin can review recent data to better understand the real estate market's impact on the local economy.

A November 2012 report from a group of local real estate experts states that Central Texas home sales increased 37 percent between October 2011 and October 2012 - the biggest year-over-year percentage gain in several years. The median price for homes in Austin also rose 5 percent during the period.

"This is a significant increase in sales volume, even for the Austin market, which has seen 17 straight months of increasing sales," a local real estate expert told the Austin American-Statesman. "The last time our market saw increases of this size was in 2009, just prior to the expiration of federal homebuyer tax credits. To see these results now without those types of external factors stimulating the market is very encouraging."

The local real estate professional noted that these figures show that home sellers can expect to move their properties more quickly than they could in the past. Increased competition for Austin homes could transform what was once a buyer's market in the favor of sellers and dramatically affect local residents.

Homeownership opportunities in Austin
Many properties are available in Austin, but homebuyers could soon face challenges to find affordable houses if they don't act soon.

The interest rates on various 15- and 30-year fixed-term mortgages are appealing for homebuyers because they are at historically-low levels. For example, the interest rate on a 30-year fixed-term allowance was 3.34 percent as of November 15, 2012. This figure dropped 0.6 percent from the November 8, 2012, rate, but there is no guarantee that it will continue to fall.

Reuters points out that more housing units are being built across the United States. Additionally, several Goldman Sachs economists predict that the number of homes constructed across the country will increase from 1 million in 2012 to 1.2 million next year. U.S. Commerce Department statistics show that housing starts increased 3.6 percent between September 2012 and October 2012 in the nation, and new properties could further drive interest in Austin residences.