Eleven Oaks Realty is proud to present their April 2014 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Time to Sell Home in Austin Down 12%
In April 2014, it took 27 days to sell a home in Austin, on average, compared to 31 days in April 2013, marking a 12% decrease in year over year numbers. As predicted last month, historical low inventory and new inventory has caused motivated buyers to select from existing inventory. Thus, it is taking fewer days to sell a home in Austin. Last year’s low was in May 2013, which was about 27 days to sell. It will be interesting to see if we continue the downward trend as we did last year, or if it starts to slow down a month earlier than usual.
What does this mean to buyers? Make home buying a priority and attack it like an important project. Get fully pre-approved before you look at homes. Pre-approval letters with offers are mandatory in this market. Have your Realtor set up email alerts to notify you as soon as a home that meets your search criteria is listed. Carve out time during the week to see properties – the best properties might not last until the weekend. Work with a Realtor who is flexible and responsive so you don’t miss out. For multiple offers, know there is no “formula” that will guarantee you are the successful bidder. Ignore list price. Instead, decide what this property is worth to you. Properties in the best neighborhoods are selling for significantly higher than list price. Buyers who are afraid to be outbid are making very competitive offers. The most successful buyers are flexible, prepared, ready to move quickly and make competitive offers. Though inventory is low, you only need to find 1 house, not 20. Keep a positive attitude, monitor the market, try not to get discouraged and you’ll be a homeowner in 2014.
What does this mean to sellers? If you’re thinking about selling, now is the time. Even if your home is not in the best location, or has a locational flaw, frustrated buyers who want to be done with their search are looking to these types of properties. They are ready to buy and waiting for new inventory. Both long time renters and professionals relocating to Austin are flooding the market. It’s estimated 170 people move to Austin per day and the majority of them don’t want to waste money renting in Austin’s highly competitive and expensive rental market. Austin renters are tired of extreme rent hikes and are ready to find something more permanent now that mortgage rates are low. Take advantage of historically low housing inventory and low interest rates and move on to your next home.
Austin Housing Inventory Down 9%
April 2014, we saw 1.3 months of inventory on the market, compared to 1.4 months of inventory in April 2013, marking a 9% decrease in year over year numbers. We continue to set records with inventory numbers. Buyer demand is still incredibly strong in the Austin real estate market, so I don’t see the market seeing a flood of inventory any time soon. Homes in the most desirable neighborhoods are selling quickly and will continue to unless we see interest rates spike or rents substantially decrease.
Austin Homes Under Contract Down 4%
In April 2014, 1,196 homes went pending (under contract) in Austin compared to 1,244 in April 2013, marking a 4% decrease in year over year numbers. Though we’re seeing many buyers in the market, buyers are being careful to select a home that’s right for them. We’re also seeing fewer homes being introduced to the market, which explains fewer homes under contract from a numbers perspective. The majority of the demand is coming from buyers with no homes to sell, so they are constantly snatching up inventory and not replacing.
Austin Median Home Price Up 7%
This month, we saw a 7% increase in the median home sale price of a home in Austin. In April 2014, the median home price was $320,000 compared to $297,700 in April 2013. Median home price helps us see the distribution of homes sold and does not really give us an indication of the increase or decrease in a particular home’s market value. To analyze market value, we’d have to take an in depth look at a neighborhood. If you’re looking for something like that, please check out our Austin Home Values Report.
7% Fewer Homes on the Market
In April 2014, we had 2,870 homes for sale in Austin, compared to 3,071 in April 2013. We continue to see fewer homes on the market, an indication that sellers are either waiting until the kids get out of school to list or are staying put. Next month’s numbers will be a better indication. The majority of buyers in Austin are relocating to Austin or renters. Low interest rates, good jobs and seemingly affordable real estate has encouraged those with means to buy a home.
Number of Sold Homes in Austin Down 21%
In April 2014, Austin saw an 21% decrease in the number of homes sold from April 2013 to April 2014 numbers. In April 2014, we saw 863 homes sell in Austin compared to 1,086 in April 2013. Remember, sold data is 30-45 days behind market activity. Many of the homes that sold in April went under contract in February and March, which was only the very beginning of our busy market. Keep that in mind when making offers. When the market is on the way up, comps lag the current market and will likely show the home is worth significantly less than list price. Because demand is so high, frustrated buyers are ignoring list price and making offers according to what it is worth to them. These figures are often higher than what most sellers are asking, especially in the most desirable neighborhoods.
Number of Homes Listed for Sale Down 7%
In April 2014, we saw 1,349 homes introduced to the market compared to 1,448 in April 2013. This is again proof that there are more buyers than sellers in the market. As we head into May, we’ll continue to see an increase in number of homes listed for sale if the market continues with normal seasonal trends. We should start to see a slow down as we head into June and July as parents get their kids ready to go back to school.
Number of Homes Taken Off the Market Up 74%
In April 2014, we saw 153 homes taken off the market compared to 88 homes in April 2013, which is a 74% increase in year over year numbers. It seems there were several sellers who attempted to list their homes above what the market would bear and in April 2014, got frustrated and gave up. Even though there is very little inventory, buyers are recognizing homes that are not a value and ignoring them. All homes sell for the right price if they are exposed to enough buyers.
Having trouble selling your home? Check out our Austin Home Not Selling resources page to find out why.
Supply is Down 7% and Demand is Down 21%
This month we saw a 7% decrease in supply (number of properties for sale) and a 21% decrease in demand (number of sold properties). If you aren’t active in the market, you might characterize this market differently than we do. In the most desirable neighborhoods, demand is strong, with multiple offers and overbids on the most desirable properties. Instead of settling for a home in a less desirable area where demand isn’t as strong, buyers are choosing to wait for something in their target area. Though city-wide, market data shows demand is down, it is very neighborhood specific and does not account for buyers waiting for new inventory.
Median for Sale Up 13% vs Median Sold Price Up 7%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 13% increase in the median for sale price and a 7% increase in the median sold price of a single family home in year over year numbers. This shows sellers are setting higher list prices and buyers are continuing to offer more. But, there are still unrealistic sellers in the market who think their homes are worth more than buyers do, which explains the discrepancy in for sale versus sold figures.
Source: Clarus Market Metrics, ACTRIS Sold Data
April 2014 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for April 2014 Austin home sales below. The most expensive home that sold in April 2014 sold for $4,000,000 and the least expensive home sold for $55,000. Homes ranged in size from 452 sqft – 12,736 sqft with an average size of 2,243 sqft. The average price per square foot for a home that sold in Austin in April 2014 was $181.72 with the lowest being $19.23/sqft and the highest being $996.30/sqft. It took, on average, 28 days to sell a home in Austin and sellers received, on average, 98.95% of their original list prices.
|Beds||Baths||SqFt||List Price||LP/SqFt||Sold Price||SP/SqFt||SP/LP||SP/OLP||ADOM|
|Status||Sold||Sold Date||April 2014|
|Property Type||Single Family Homes||Number Sold||894|
|Source:||ABoR Sales Data||Area||Austin|
Time to Buy? Sell?
As we always say, the best time to buy or sell a home is when you need to buy or sell. If you have a house to buy, buying when its a sellers market may hurt you on the buying end, but you’ll make it up on the selling end. If you’re trying to get into the market for the first time, the only way you’ll know that we’ve “hit bottom” is when its in the rear view mirror. Work with professionals who can help you analyze your financial and lifestyle to determine if now is the right time to buy or sell.
Looking strictly at the numbers, it appears the recommendation for this month is it’s time to sell. Inventory is at historic lows and buyers are ready to make highly competitive offers, sometimes within hours of it being listed. If you own a home in Austin and want to move, now is the time. Get your home on the market and target the busy Spring/Summer buying season when the most number of buyers are looking. May is about the last month to capitalize. We have entered the busy season and we will start to see figures drop off come June and then more so come August. Get your home ready to sell now and take advantage of the pent up demand. For more info about selling your home, visit Sell My Austin Home.
If you’re a buyer, stay proactive. Be ready to scout homes when they’re listed. Work with a Realtor who knows the market and knows strategies for multiple offers. They can help set you apart from the thousands of other buyers currently in the market. If you’re thinking of buying a home, we can help! We know the market and can help you become a homeowner in 2014. For more info about our Home Buyer Representation Program, check out Austin Buyer Representation.
Questions About the Austin Real Estate Price Report?
Do you have questions about this Austin Real Estate Price Report? Call us at (512) 827-8323 or email us at info@11OaksRealty.com and we’ll help you in any way we can. If you’re looking to buy or sell Austin real estate, don’t forget to check out our Buyer Resources and our Seller Resources for more tips.