The Dream Home Realty Group at Sky Realty is proud to present their April 2011 Austin Condo Price Report measuring activity in the Austin condominium market.
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Number of Austin Condos Sold Down 28%
The biggest news in this month’s Austin Condominium Price Report comes by way of number of condos sold, which is down 28% or 51 units from April 2010 numbers. You’ll see as we take you through the numbers, both buyers and sellers continue to show reluctance to make a move.
Number of Condos Pending Down 29%
It appears as though the trend of fewer condos sold will continue next month as we see under contract condos (which we expect to close this month) are down 29% or 75 units from April 2010 numbers. To put this number in some perspective, April 2010 saw huge spikes in the number of both condos and single family homes that sold in Austin, so some of this decrease can be attributed to the recovery from this high number. We did see more condos accept a contract in April 2011 as we did in March 2011, which would be expected in our seasonal Spring uptick.
Number of Austin Condos Listed for Sale Down 19%
We also see a drop off in the number of condos listed for sale in Austin in April 2011, with a 19% decrease (80 units) from April 2010 numbers. It seems sellers are either holding onto their condos waiting to see what the Spring market holds for them or deciding to stay in their units longer than they have in years past. We saw the Spring surge in March 2010 this year and then saw a substantial dip in this month’s new listings. It will be interesting to see if the seasonal trend picks up in May or if we’ll see the usual down tick as parents transition their kids to summer vacation.
Number of Condos on the Market Down 22%
In April 2011, we saw 22% fewer condos (379 units) on the market than we saw in April 2010, another indication sellers are holding back. Last year, we saw only a small uptick in Spring and Summer numbers and it looks like we’ll see an even smaller uptick during this year’s peak selling months. You’ll see in the graph below, we only have a few more homes listed for sale in March and April of 2011 than we had in the usually slower December and January time period.
Median Sold Price of Austin Condos Remains Constant
We saw no change in the median sold price of Austin condos in year over year numbers. If you take a look back over the past year, you don’t see any sort of trend. In fact, its basically all over the board. And, we saw the highest median sold price of Austin condos in December 2010, something you’d usually see in June or July (last year those were the lower months). With fewer sales in December, its likely more higher priced units sold vs the lower priced units, while last summer saw more lower priced unit sales.
Time to Sell an Austin Condo Down 5%
At its lowest point in the last year, the time to sell a condo in Austin is down 5% or 3 days in year over year numbers. This number took a substantial dip from last month’s average of 87 days indicating there are still buyers in the market. With the Spring peak buying season, this decrease is something we’d expect.
Austin Condominium Inventory Up 15%
A completely different story from what we saw in the single family home report, Austin condo inventory is up 15% or 0.8 months in year over year numbers. This means it would take us 6 months to sell the current inventory in a balanced market if there were no new condos listed in the meantime. This number is much lower than our year high of just over 12 months in September 2010 and is to be expected as more buyers get into the market during the Spring peak buying season.
Gap Between Buyer and Seller Market Perception Widening
Though not as pronounced as what we saw last May, the gap between buyer and seller market perception is widening from last month’s numbers but has remained virtually constant from April 2010 numbers. We saw no change in the median for sale or the median sold price in year over year comparisons, indicating buyers and sellers seem to be in the same mind frame they were last year at this time. But, while last year saw many more transactions, this year buyers are reluctant to buy and sellers are reluctant to sell.
Number of Condos Taken off the Market Down 31%
The number of expired condos in Austin (number of condos that were taken off the market) was down 31% or 48 units in year over year comparisons. But, given that we’ve had much less inventory enter the market, this decrease is to be expected.
Supply and Demand for Austin Condos Both Down
This month we see a 22% decrease in the supply of Austin condos and a 28% decrease in demand, indicating there are still more sellers in the market than buyers. But, it makes us wonder, are buyers not finding the inventory they’re looking for and simply waiting for the right unit to come along before they take the plunge? Or are there really just fewer buyers out there. Next month’s report will be interesting as we start to uncover the answer to this question.
Source: Clarus Market Metrics, ACTRIS Sold Data
Time to Buy? Sell?
As we always say, the time to buy or sell a condo in Austin is when its right for you. Trying to time your real estate purchase for the market will get you in a lot of trouble. Not only is it impossible to predict what the market will bring next month, the most important factor is are you financially and emotionally ready to own a condo? Work with professionals who can help you wade through your finances and living situation and help you make an informed decision.
But, if you are looking strictly at the numbers, it looks like this month’s story follows the same lines as last month. Last month’s numbers indicated now may be a good time again to buy rather than sell. With a decreased number of buyers in the market, you have less competition and can negotiate a better bargain with a motivated seller. If you’re a buyer, getting into the market now while sellers aren’t see as many offers as they were in previous months, may give you an opportunity to strike a deal you wouldn’t otherwise get in a busier time. But, remember, we’re looking at the market in the rear view. Work with someone you trust to give you sound advice about what’s going on now so you can make an informed decision.
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.