Austin home sales jump 38 percent in October
(Austin) - Central Texas existing-home sales jumped nearly 38 percent in October as buyers took advantage of a federal tax credit for first-time homeowners and favorable mortgage interest rates.
It was the biggest year-over-year percentage gain in more than four years and encouraging news for a housing market that struggled for much of 2009.
"We're still in an environment where the Austin region is losing more jobs than are being created," said Eldon Rude, local director for Metrostudy, which conducts housing research in Austin and 32 other markets nationwide. "There remains a lot of uncertainty out there."
The Austin Board of Realtors reported Wednesday that 1,823 single-family homes were sold last month, compared with 1,322 in October 2008.
Pending sales — transactions expected to close in November — were up 47 percent, an indicator of another strong month.
Last month, 64 percent of sales were for homes priced between $100,000 and $249,999 — a typical range for first-time buyers.
The median price was $182,000, down 5 percent from a year earlier.
Experts say the tax credit, along with low mortgage rates, will continue to feed sales in the coming months.
But some experts are cautious about the Austin economy.
Major high-tech employers have cut manufacturing jobs. And construction jobs have disappeared with the slowdown in commercial development.
Rude noted that traffic from relocation buyers — people moving to Austin for new jobs — is down significantly.