Eleven Oaks Realty is proud to present their August 2015 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 7%
The biggest story in this month’s Austin Real Estate Price Report comes by way of median home prices. For the twelfth month in a row, the median price of a home in Austin outpaced last year. The median price of an Austin home in August 2014 was $317,500 compared to $340,000 in August 2015, marking a 7% increase in year over year numbers. Yet again, Austin home buyers are coming out strong. They are making solid offers and driving prices up.
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.
What does this mean to buyers? Though prices are going up, interest rates have dipped again, making homes about 10% more affordable than they were last year at this time. With the same monthly payment for homes this year compared to last year, even with the 7% price increase, the only buyers who are affected by the increase are cash buyers. If you want to own a home in Austin in 2015, make home buying a priority. Experts predict September 2015 is the best month to buy a home. Why? The inventory slow down has yet to hit, interest rates are still low and most buyers are busy getting the kids back to school. Take advantage of more supply, affordability and less demand.
What does this mean to sellers? If you’re thinking about selling, it isn’t the worst time to do that either. The market has yet to slow down and buyers are still willing to pay more for their homes than they were last year. With low interest rates, buyers can afford more. Who knows what will happen if interest rates increase. Position your home as a value, price it right and you’ll have no trouble finding a buyer.
Time to Sell Home in Austin Up 18%
In August 2015, it took 38 days to sell a home in Austin, on average, compared to 32 days in August 2014, marking an 18% (6 day) increase in year over year numbers. This increase in time to sell is something we’ve been experiencing for the past several months. Though buyers are willing to pay more, they are taking longer to make a decision. When you consider they are willing to pay about 7% more than they were last year, it is probably worth the wait for a seller.
Number of Homes Taken Off the Market Down 2%
Bucking a twelve month trend, August 2015 was the first month we saw a decrease in the number of homes taken off the market in Austin. Proof positive that the market has not yet experienced the “back to school” slow down we usually see in August. Sellers are still confident in the activity in the market to keep their homes active. In August 2014, there were 314 single family homes taken off the market compared to 308 in August 2015, marking a 2% (6 home) decrease city wide. Though 2% is not statistically significant, it is still a promising sign for sellers looking to sell before the end of the year.
If you need to sell and your home was priced right, maybe there was something else going on. The biggest culprits we see are incorrect info in the MLS and poor marketing. Check out our Austin Home Marketing Plan to see how your homes would be marketed.
Having trouble selling your home? Check out our Austin Home Not Selling resources page to find out why.
Number of Sold Homes in Austin Up 1%
In August 2015, Austin saw a 1% increase in the number of homes sold from August 2014 to August 2015. In August 2015, we saw 1,031 homes sell in Austin compared to 1,020 in August 2014 marking a 1% (11 home) increase in year over year numbers.
Austin Housing Inventory Down 13%
In August 2015, we saw 2.4 months of inventory on the market, compared to 2.7 months of inventory in August 2014, marking a 13% decrease in year over year numbers. Though we still saw an increase in inventory from July numbers, the difference was marginal. Typically, we see a big jump in inventory in August. Another indicator September might be the month for Austin home buyers.
Austin Homes Under Contract Up 12%
In August 2015, 1,053 homes went pending (under contract) in Austin compared to 941 in August 2014, marking a 12% increase in year over year numbers. August saw a slight decrease from July numbers, but nothing substantial. For all intents and purposes, August was a pretty strong month for Austin home sales, especially when you compare to last year’s numbers.
Number of Homes on the Market Up 1%
In August 2015, we had 3,845 homes for sale in Austin, compared to 3,817 in August 2014, showing a 1% (28 home) increase in year over year numbers.
Number of Homes Listed for Sale Down 1%
In August 2015, we saw 1,267 homes introduced to the market compared to 1,281 in August 2014, marking a 1% (14 home) decrease. Interestingly, this year July saw the most number of new listings in Austin. We typically expect the peak around April or May.
Supply Up 1% and Demand is Up 1%
This month we saw a 1% increase in supply (number of properties for sale) and a 1% increase in demand (number of sold properties).
Median for Sale Up 10% 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 10% 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. Again, sellers are seeing the activity in the market and pricing higher. And, buyers are willing to pay pretty close to what sellers are asking for.
Source: Clarus Market Metrics, ACTRIS Sold Data
August 2015 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for August 2015 Austin home sales below. The most expensive home that sold in August 2015 sold for $4,126,870 and the least expensive home sold for $37,250. Homes ranged in size from 576 sqft – 8,840 sqft with an average size of 2,261 sqft. The average price per square foot for a home that sold in Austin in August 2015 was $190.64 with the lowest being $14.33/sqft and the highest being $801.47/sqft. It took, on average, 34 days to sell a home in Austin and sellers received, on average, 98.01% 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||August 2015|
|Property Type||Single Family Homes||Number Sold||1,044|
|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. The “back to school” slow down isn’t quite here yet, giving sellers one last crack at a competitive buyer pool before the market slows down for the Holidays. Though it is taking, on average, 18% longer to sell, buyers are willing to pay about 7% more than they were last year. Demand still hasn’t slowed down tremendously either. For some reason, school starting has not decreased the buyer pool by as much as it usually does.
If you’re a seller who needs to sell, work with a professional Realtor who can help you position your home as the best value on the market. There are still highly motivated buyers in the market who are ready to make stronger offers than they were last year. With 2.4 months of inventory, we are in a strong seller’s market. Check out our 88 Ways to Sell Your Home Faster and For More Money for some tips on how you can prepare your home to meet the market. Historically, homes that sold in Spring sell for more than at any other time of the year. For more info about our Home Selling Program and why it is the best in Austin, check out Sell My Austin Home.
If you’re looking to buy, make home buying a priority. You can’t check what’s for sale once a week and expect to find a home. It’s taking longer to sell homes, which means you have the opportunity to beat other buyers to the best new listings if you are proactive. Be clear on your wants and needs so you can make a quick decision whether or not the house will work for you. Even though the Austin market is still very competitive, it is still possible to buy the right home for you if you have a strategy. If you’re looking to buy, we can help you be successful, even in this competitive market. We know the market and know how to get the best deal for a buyer. For more info about buying a home, visit Buy a Home in Austin.
Curious How Much You Could Sell Your Austin Home For?
Our Market Snapshot Tool is for you. With just your zip code, we’ll email you a detailed report showing what homes in your neighborhood sold for, how long it took to sell and how the market is trending. Though our Austin Real Estate Price Report is helpful in gauging the overall trend of the market, it doesn’t address neighborhoods specifically. If you’re looking for that type of report, put in your name and zip code below and our system will email you a Neighborhood Market Report.
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.
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