Metrostudy: new home sales strong in Austin; prices rise

AUSTIN – New home sales across the United States soared to six-year highs in May, and the situation appears equally robust in Austin, according to Metrostudy.

Austin builders closed 2,446 homes during second quarter 2014, a 10 percent increase compared to 2Q 2013.

For the 12 months ending June 30, builders have sold 9,203 homes in Austin, a 14 percent increase over the previous 12-month period.

Builders started 2,688 homes in 2Q 2014 and 9,716 in the past 12 months. There are now 4,924 homes complete and ready for purchase, or a 6.4 month supply.

More homes are being built in higher price ranges. Increased permitting and development costs are making it increasingly difficult to build homes priced below $150,000, which is what is typically considered affordable for first time homebuyers.