Metrostudy: Austin housing starts rise 17% in 3Q 2014Metrostudy: Austin housing starts rise 17% in 3Q 2014https://www.recenter.tamu.edu/news/newstalk-texas/?Item=28942014-10-03T13:01:00Z2014-10-03T06:48:00Z

AUSTIN - Builders started work on 3,123 homes during third quarter 2014, a 17 percent increase compared with 3Q 2013, according to Metrostudy.

Austin’s housing market is still going strong, but rapidly rising prices are starting to slow momentum.

On an annual basis, housing starts were up 9 percent in the 12 months that ended in September 2014 as builders started construction on 10,205 new homes. That 9 percent increase marks a significant slowing from 2013, when the annual increase was 30 percent.

“The Austin market has experienced a strong year thus far but momentum has started to slow as builders and home buyers are starting to feel the pinch of higher costs and home prices,” said Randall Allsup, Metrostudy regional director of the Austin market.

The region continues to see robust job and population growth, and demand for new homes remains strong, especially in areas that are producing entry- level houses priced below $200,000.

The upswing in third quarter home starts was primarily due to lots becoming available in high-demand areas where builders rushed to get houses started.

Builders are seeing a slowing in their sales, especially in the $300,000 to $700,000 price range, according to Eldon Rude, a local housing market expert. However, builders constructing homes in the $250,000 and below category say their business is picking up.

“The number of new homes under construction can either be an early indicator of future closings, but also may harbor higher levels of inventory and a softer market,” said Allsup.

Austin American-Statesman
Austin-Round Rock
http://www.statesman.com/news/business/central-texas-housing-starts-rise-17-in-3rd-quarte/nhbWG/Read more at {Source}

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