The Dream Home Realty Group at Sky Realty is proud to present their February 2011 Austin Condo Price Report measuring activity in the Austin condominium market.
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Austin Condo Prices Up 11%
In year over year comparisons, Austin condominium prices were up $15,200, or 11% from February 2010 numbers. The median condo price is currently seeing levels seen back in July 2010, just before the seasonal uptick we can expect during the late summer months. With the decreased inventory, it seems buyers are willing to pay more for units they like.
Months Supply of Austin Condo Inventory Down 21%
Perhaps the most revealing statistic we found in our February 2011 report is the months supply of condo inventory is down 21% in year over year comparisons. As number of sold condos are also down, it seems sellers are holding on to their condos until they have a clearer understanding of where the condo market is headed.
New Condos Listed Down 32%
The number of new condos listed for sale in Austin is down 32%, which more evidence to the case sellers are holding on to their condos more this year than they have in the past. We saw a small uptick in January 2011 of newly listed condos, which is typical after the November and December holidays. The down tick in February was possibly because sellers who planned on selling started the process in January, rather than waiting until February. The market will soon tell us how realistic these sellers are being with setting their prices.
Number of Sold Condos Down 24%
The number of condos sold in February 2011 was also down in year over year comparisons. Austin sold 88 condos in February 2011 vs. 116 in February 2010. Last year, we saw a large increase in the number of condos sold between February and March. It will be interesting to see if we experience that same jump and if so by how much.
Pending Condo Sales Down 6%
With pending sales (condos that went under contract but have not yet closed escrow) down only 6%, it seems to be a good indicator of an increased volume of condo sales predicted for March 2011. Last year saw one uptick in number of condos under contract in March and April and then remained virtually constant the remainder of the year. Compare this with the single family home market which saw the spring (March/April) uptick, but also another uptick in August, September and October. As the condo market is generally not as hot as the single family home market, this behavior is not abnormal.
Austin Condo Inventory Down 22%
The number of condos for sale in Austin is down 22% in year over year numbers, another indicator sellers are sitting on the sidelines. In February 2011, we had 1,197 condos for sale in Austin while in February 2010, we had 1,525 condos for sale. The number of condos for sale has remained constant since about December, seeing a steady decrease from the peak summer months. The real estate market usually has a down tick in the November and December holiday months. The single family home market starts to pick up again in January, and it usually takes the condo market a little while longer to regain its footing.
Gap Between For Sale and Sold Tightening
We saw in our single family home price report, the gap between the median price of units for sale and units sold was tightening. This also holds true in the condominium market. In February year over year comparisons we saw a 2% decrease in median price of for sale condos and an 11% increases in median price of sold condos. This indicates the gap between where buyers and sellers think the market lies, is coming closer together.
Average Time Takes to Sell Condo Up 43%
The average time it takes to sell a condo went up 43% in February year over year comparisons. Last February, it took 70 days, on average, to sell a condo in Austin, while this February its taking, on average, 100 days. The average days on market hovered around 70 for much of last spring and summer, only reaching 80 days in July. Then, in September, we saw that number hit 100. In November, we saw a decrease to back around 80 and its been headed back up ever since.
In the winter months, we usually see our most serious buyers and sellers. This lower number could be an indication that more serious sellers who were motivated and priced their units appropriately had their condos listed for sale and buyers saw this opportunity and made the move.
Expired Condos Up 13%
With the number of new listings down and the number of expired condos (condos that were taken off the market before they could produce a sale) up, it seems sellers who were unable to produce a sale are taking their units off the market – at least for the time being. Though the number of expired condos are at their lowest levels since last February, we would attribute this to timing. Most sellers give the market between 3-6 months to sell their homes. Counting back 3 months from February, puts us at the start of the holiday season when fewer people were putting their condos on the market. We would expect the expired number to increase in March and April due to the increased number of condos that were put on the market at the beginning of January.
Supply and Demand – Austin Condos
The supply and demand chart below plots the number of condos for sale versus the number of condos sold to give you an idea where buyers and sellers are in the market.
Source: Clarus Market Metrics, ACTRIS Sold Data
Questions About the Austin Condo Price Report?
Do you have questions about this Austin Condo Price Report? Call us at (512) 827-8323 or email us at info@AustinRealEstateHomesBlog.com and we’ll help you in any way we can. If you’re looking to buy or sell Austin condos, don’t forget to check out our Buyer and Seller Resources for more tips.