Home sales in Central Texas fell nearly 27 percent in September compared with the same month a year ago, but the year-to-date sales volume remained on pace with 2009, according to the Austin Board of Realtors.

An economist said the outlook for 2011 is another year of slower sales in the region.

The board reported Wednesday that agents sold 1,274 single-family homes last month, compared with 1,738 in September 2009. Pending sales were down 27 percent, likely signaling slower sales for October.

As the effects of the federal tax credit for homebuyers faded in recent months, sales of both new homes and resales dropped fairly sharply in May, June and July in nearly all 40 markets tracked by Metrostudy, a housing market research firm, said Eldon Rude, director of Metrostudy's Austin division.

These reduced sales levels are now showing up as fewer closings as we move into the fall, Rude said.

September's median sales price was up 4 percent to $195,000, meaning half the homes sold for more than that amount and half for less. Homes spent an average of 82 days on the market, up 15 percent from the same month in 2009.

From January through September, agents sold 14,014 homes, down 1 percent from the same period in 2009, the board reported.

Although Austin's economy continues to be better than many places across the country, the region still has challenges, said Ed Friedman, a director at Moody's Economy.com who covers the Texas economy. Austin's 7.2 percent jobless rate, though lower than that of other metro areas, is still elevated, he said.

Austin is still at the top, and the top isn't very great, and I think that's the point, Friedman said. He said sales are going to stay subdued for the better part of the next year.

Rude said the good news for Austin is that though the pace of closings has slowed, the number of available listings also is declining.

There are 11,834 homes for sale, including townhomes and condominiums. Based on the current sales pace, that translates into a 6.8-month supply, down from 7.4 months in July and a level that helps keep prices stable.

Source: Statesman.com