Eleven Oaks Realty is proud to present their August 2019 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 6%
The biggest story this month: median home prices in Austin up again this month. We sound like a broken record, but month after month, the median price in Austin increases. The median price of an Austin home in August 2018 was $399,949 compared to $417,000 in August 2019, up 4% ($17,051) in year over year numbers. This marks another record setting month of price increases in the city of Austin. Though not huge, we are seeing steady increases month after month.
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? With years of steady price increases, it doesn’t appear waiting for prices to drop is the right strategy. If the future is anything like the past, waiting will only cost you more money. Austin has seen a huge influx of residents with high paying jobs from more expensive areas of the country. When you compare what they can get where they’re from, they’re getting a steal of a deal here. Though that’s not the only reason prices are increasing, it does contribute. And, we don’t see the business economy slowing down any time soon.
What does this mean to sellers? Even though demand is down, supply is down more, so we are still in an extreme seller’s market. Though buyers aren’t coming out in numbers they were last year, they are still willing to pay more and are taking less time to make decisions. And, buyers who haven’t found anything yet are getting antsy to find something. So, they’ll be ready to make a decision even faster.
9% Decrease in Time to Sell Home in Austin
In August 2019, it took 37 days to sell a home in Austin, on average, compared to 40 days in August 2018, marking a 9% (4 home) decrease in year over year numbers. It seems buyers are a little faster to make offers on homes that are a fit. Could be because we have less inventory on the market this year than last year, so they might feel like they don’t have as many choices. Or, if they wait too long, someone else will snatch up the house. Either way, sellers should be happy that it is taking less time to sell than it did last year.
Number of Homes Taken Off the Market Saw a 12% Decrease
In August 2019, there were 273 homes taken off the market compared to 309 in August 2018. This marked a 12% decrease in year over year numbers. As we closed out summer, we did see an increase in month over month numbers as well. But, as we discussed last month, this trend is normal for this time of year. Home buying does tend to follow the school schedule. Once school starts, families don’t want to worry about moving around, so they often take their homes off the market or pause their home search.
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 Down 2%
Austin saw a 2% decrease in the number of homes sold from August 2018 to August 2019. In August 2019, we saw 1,131 homes sell in Austin compared to 1,156 in August 2018 marking a 2% (25 home) decrease in year over year numbers. This has been a strange year as we have seen fewer buyers, but still steady price increases. It will be interesting to see what fall brings. We typically see a small uptick on September and October.
31% Decrease in Austin Housing Inventory
In August 2019, we saw 2.1 months of inventory on the market, compared to 3.0 months of inventory in August 2018, showing a 31% decrease in year over year numbers. We are fast approaching extreme seller’s market levels of inventory, which explains why prices remain strong.
Austin Homes Under Contract Up 15%
In August 2019, 1,094 homes went pending (under contract) in Austin compared to 952 in August 2018, marking a 15% (142 home) increase in year over year numbers. Typically we would expect a drop in sales in August, but this year we saw the opposite. It will be interesting to see if this is a predictor of a busy fall season.
12% Decrease in Number of Homes on the Market
In August 2019, we had 3,647 homes for sale in Austin, compared to 4,127 in August 2018, showing a 12% (480 home) decrease in year over year numbers.
11% Decrease in Number of Homes Listed for Sale
In August 2019, we saw 1,188 homes introduced to the market compared to 1,336 in August 2018, marking an 11% (148 home) decrease in year over year numbers. Though time to sell is going down and prices are going up, sellers are still hesitant to put their homes on the market. With rising prices, could be that owners are deciding to remodel or live with what they have, rather than shelling out more for their next home.
Supply Down 12% and Demand Down 2%
This month we saw a 12% decrease in supply (number of properties for sale) and a 2% decrease in demand (number of sold properties).
Median for Sale Up 5% vs Median Sold Price Up 4%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 5% increase in the median for sale price and a 4% increase in the median sold price of a single family home in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
August 2019 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 2019 Austin home sales below. The most expensive home that sold in August 2019 sold for $5,588,000 and the least expensive home sold for $130,000. Homes ranged in size from 528 sqft – 11,871 sqft with an average size of 2,234 sqft. The average price per square foot for a home that sold in Austin in August 2019 was $242.84 with the lowest being $80.56/sqft and the highest being $1,342.30/sqft. It took, on average, 33 days to sell a home in Austin and sellers received, on average, 97.50% of their original list prices.
|Beds||Baths||SqFt||List Price||LP/SqFt||Sold Price||SP/SqFt||SP/LP||SP/OLP||ADOM|
|Property Type||Single Family Homes||Number Sold||1,143|
|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. Though demand is down, supply is down more so we are still in an extreme seller’s market. With just over two months of inventory and fewer new listings coming online, buyers are having to make concessions or pay more for homes that meet their needs. There are still quite a few lingering buyers who didn’t quite find what they were looking for in the busy spring market. They are ready to make offers quickly if they find a home that is a fit. Give them another choice and you just might get your home sold quickly.
If you’re a seller who needs to sell now, work with a professional Realtor who can help you position your home as the best value on the market. Though we aren’t seeing as much activity, median price is still healthy, showing there are still highly motivated buyers in the 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. 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, keep in mind there are fewer buyers in the market. With fewer buyers, some might not feel the sense of urgency to check out new listings as quickly as possible. If you have listing alerts set and scope out new listings as soon as they’re listed, you’ll beat other buyers to the best homes. And, if you’re ready to act, you can make an offer before the competition has time to see it. Remember, even though there are fewer buyers, the best homes are still selling quickly. You’ll want to give yourself ample time to make a decision. Get your search set up and start looking at new listings now. If you’re looking to buy, we can help you be successful. 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.
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.