June’s Hottest Housing Markets Offer Some Surprises

Californian cities and their consistently high home prices appear to be prompting more home buyers to look elsewhere. Many of the previously top-performing Californian cities are sliding down from their six year top spot standing, as people are pivoting away from the overheated markets into less expensive secondary markets. 

The hottest metro housing market for June was Midland, Texas. Midland is a very hot market that is heating up compared to last month, as well as, heating up compared to last year. Median days on the market are running 28.5 days, with inventory moving 25% faster than last year and 25.5 days faster than the U.S. market.

Overall, home prices nationwide continued to climb in June, with the median list price nationwide at $299,000, a 9% year-over-year increase, according to the National Association of Realtors®. 

Austin, Texas ranks #114 out of 300 metros in the U.S. market for the month of June. Austin is a slightly hot market that is calming down compared to last month, and cooling down compared to last year. Median days on the market is 46 days, with inventory moving 1% slower than last year and 8 days faster than the U.S. overall. Yet, the median price for single-family homes in the city of Austin increased 3.7 percent year-over-year to $389,000 in May, an all-time high for the city.

Over the last five years, the pace of home price growth in the Austin-Round Rock MSA has exponentially outpaced the median family income growth. According to the Department of Housing and Urban Development (HUD). 

The growth in housing prices in the city of Austin also has implications for the Central Texas region at large, where home prices continue to rise amidst tight inventory. In May 2018, seven in 10 homes sold within the five-county MSA were sold outside of Austin city limits.