December 2014 Austin Real Estate Price Report

Eleven Oaks Realty is proud to present their December 2014 Austin Real Estate Price Report measuring activity in the Austin single family home market.

Austin Median Home Price Up 10%

For the fourth month in a row, the biggest story in this month’s Austin Real Estate Price Report comes by way of median home price. The median home price of an Austin home in December 2013 was $286,500 compared to $314,200 in December 2014 marking a 10% increase in year over year numbers. Even though December is historically one of the slowest months in the Austin real estate market, buyers who were in the market were willing to pay more than they were willing to pay last year, which should be great news for sellers.

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 buyers are paying more than they were last year, they are paying less than they were during Spring. And, prices have seemed to have leveled out from the Spring peak. Another check in a buyer’s favor is their ability to negotiate with sellers. Spring was more of a multiple offer, throw all your money at a seller whereas Winter trends towards a more businesslike transaction with both sides negotiating. Spring is just around the corner, so if you want to buy in a less stressful, more buyer friendly market, it would be wise to start your home search soon.

What does this mean to sellers? Though activity is down, buyers are still willing to pay more for homes this year than they were last year. If you’re looking to trade up, take advantage of the increased time to sell and higher prices. What you might miss on the selling side, you’ll make up on the buying side. And, you’ll get more time to make your decision. Trading up during Spring can be tricky to time and most end up having to find some sort of temporary rental when their house sells faster than they can find one to buy. If you’re strictly selling and can wait until Spring, you’ll likely get more for your home. If you can’t, now is still a strong market. And remember, you only need one buyer. If you’re looking to sell before the Spring, here are some tips for selling in Winter.

Number of Homes Taken Off the Market Up 19%

For the fifth straight month, we saw a significant increase in the number of homes taken off the market in Austin. In December 2013, there were 294 single family homes taken off the market compared to 351 in December 2014, marking a 19% (57 home) increase city wide. If we did some further analysis, we would likely find many of these homes were overpriced and instead of lowering their price, sellers decided to take them off the market and try again when the market picks up in Spring. If you don’t have to sell and you’re just testing the market, Spring is the best time to do so. 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.

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%

This month we saw a small decrease in the number of homes that sold in Austin. But, we did see an increase from November 2014 numbers, which were lower than we’ve seen since January 2014. In December 2014, Austin saw a 2% decrease in the number of homes sold from December 2013 to December 2014. In December 2014, we saw 814 homes sell in Austin compared to 829 in December 2013 marking a 2% (15 home) decrease in year over year numbers.

Austin Housing Inventory Down 13%

In December 2014, we saw 2.5 months of inventory on the market, compared to 2.9 months of inventory in December 2013, marking a 13% decrease in year over year numbers. During the busier months, most of the inventory was eaten up by buyers purchasing homes. Though that’s still largely the case, the increased number of homes taken off the market are also contributing significantly to the decreased inventory.

Time to Sell Home in Austin Down 4%

In December 2014, it took 50 days to sell a home in Austin, on average, compared to 52 days in December 2013, marking a 4% (2 day) decrease in year over year numbers. Historically, it has taken the longer to sell a home during the Winter months and this year is no different. City wide since May 2014, time to sell in Austin has increased steadily, though not as much as it did last year. If this year starts like nearly every other year in the past, we’ll start to see time to sell numbers go down again. A “normal” market is considered 90 days to sell, so we are still well below that in a seller’s market.

Austin Homes Under Contract Up 20%

In December 2014, 624 homes went pending (under contract) in Austin compared to 518 in December 2013, marking a 20% increase in year over year numbers. Even though our home sales for December were down, it seems there were quite a few more motivated buyers to get homes under contract at the end of 2014 than 2013. It will be interesting to see if this has an impact on January’s numbers.

Number of Homes on the Market Up 10%

In December 2014, we had 2,531 homes for sale in Austin, compared to 2,300 in December 2013, showing a 10% (231 home) increase in year over year numbers. It seems more sellers are confident in the direction of the market and are looking to cash out, even during the slowest time of the year.

Number of Homes Listed for Sale Up 7%

In December 2014, we saw 524 homes introduced to the market compared to 490 in December 2013, marking a 7% increase.

Supply Up 10% and Demand is Down 2%

This month we saw a 10% increase in supply (number of properties for sale) and a 2% decrease in demand (number of sold properties). Again this month we saw an increase in supply and decrease in demand. Though the market is still strong, it seems buyers have better opportunities now than they have in the past several months. If you’re looking to buy a home, now might be the best time to do so.

Median for Sale Up 12% vs Median Sold Price Up 10%

This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 12% increase in the median for sale price and a 10% increase in the median sold price of a single family home in year over year numbers.

Source: Clarus Market Metrics, ACTRIS Sold Data

December 2014 Real Estate Price Report – Strictly Numbers

For those of you who prefer to see the actual numbers, we’ve included the figures for December 2014 Austin home sales below. The most expensive home that sold in December 2014 sold for $3,500,000 and the least expensive home sold for $72,000. Homes ranged in size from 484 sqft – 10,157 sqft with an average size of 2,159 sqft. The average price per square foot for a home that sold in Austin in December 2014 was $182.07 with the lowest being $44.17/sqft and the highest being $583.16/sqft. It took, on average, 42 days to sell a home in Austin and sellers received, on average, 95.84% of their original list prices.

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 (again) is – it’s time to buy. In most markets, these numbers would signify it is time to sell, but because our market has been so strong for 3 years, buyers have to take the opportunities when they can get them. With supply up 10% and demand down 2%, you’ll have more choices and be able to negotiate better deals. If you’re looking to buy, we can help you find the right house in the right neighborhood for you and your family. We know the market and know how to make the process as stress free as possible. For more info about buying a home, visit Buy a Home in Austin.

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 strong offers, as indicated by the 10% increase in the median sold price. With 2.5 months of inventory, we are still in a strong seller’s market, just not as strong as the Spring market. If you’re looking to trade up, take advantage of the market advantages for buyers. What you might not get on the selling end will usually be recovered on the buying end. 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. If you just want to test the market, wait until Spring. 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, check out Sell My Austin Home.

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.