Eleven Oaks Realty is proud to present their December 2015 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 14%
The biggest story in this month’s Austin Real Estate Price Report comes by way of median home prices. For the 16th month in a row, the median price of a home in Austin outpaced the previous year. For the second month in a row, we saw a pretty significant increase when you consider the median price has been going up for some time. The median price of an Austin home in December 2014 was $311,929 compared to $355,000 in December 2015, marking a 14% increase in year over year numbers.
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? Prices are continuing to increase and by pretty significant amounts. Austin is still incredibly affordable when you compare prices in other similar sized cities and out of area buyers are seeing that. With the influx of companies bringing high paying jobs, I don’t see prices in Austin slowing down any time soon. If you’re looking to buy in the near future, sooner is better then later. Recognize you’ll have competition, but don’t let it defeat you. Make home buying a priority and you’ll be able to beat some buyers to the best listings.
What does this mean to sellers? December 2015 was one of the busier December’s that we’ve had. And it seems to be picking up even more as we head into January. Buyers in the market at this time of year are generally pretty motivated to find a house before the busy Spring market. If you are considering selling and don’t want to wait until Spring, now is a good time to get that process going.
Time to Sell Home in Austin Up 8%
In December 2015, it took 54 days to sell a home in Austin, on average, compared to 50 days in December 2014, marking an 8% (4 day) increase in year over year numbers. Though it is taking slightly longer to sell this year, sellers are getting more for their homes, so the delay might be worth it. If you need to sell faster, but still want to capitalize on the increase in prices, we can help you with some strategies to get buyers to look at your home first.
Number of Homes Taken Off the Market Up 35%
In December 2015, there were 384 homes taken off the market compared to 284 in December 2014. This marked a 35% (100 home) increase in year over year numbers. It seems more sellers took their homes off the market at the end of this year compared to last. In appreciating markets, we often see sellers testing the market. When they can’t get their price, they take their home off the market. Given the buyer demand we’re seeing in this market, homes that are priced right will have no trouble finding a buyer.
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 3%
In December 2015, Austin saw a 3% decrease in the number of homes sold from December 2014 to December 2015. In December 2015, we saw 854 homes sell in Austin compared to 882 in December 2014 marking a 3% (28 home) decrease in year over year numbers. This month did see an increase from last month’s numbers, which is common to accommodate end of year closings.
Austin Housing Inventory Down 11%
In December 2015, we saw 2.7 months of inventory on the market, compared to 3.1 months of inventory in December 2014, marking an 11% decrease in year over year numbers. With the increase in homes taken off the market and the increase in the number of homes that went under contract, we didn’t see the spike in inventory that we saw last December.
Austin Homes Under Contract Up 6%
In December 2015, 609 homes went pending (under contract) in Austin compared to 575 in December 2014, marking a 6% (34 home) increase in year over year numbers.
1% Increase in Number of Homes on the Market
In December 2015, we had 2,666 homes for sale in Austin, compared to 2,627 in December 2014, showing a 1% (39 home) increase in year over year numbers.
Number of Homes Listed for Sale Up 9%
In December 2015, we saw 569 homes introduced to the market compared to 523 in December 2014, marking a 9% (46 home) increase. Again this month it seems sellers weren’t afraid to put their homes on the market in the traditionally slower months. And, as we saw with the median price increase, they were rewarded for it.
Supply Up 1% and Demand is Down 3%
This month we saw a 1% increase in supply (number of properties for sale) and a 3% decrease in demand (number of sold properties). Even though we had an increase in supply and decrease in demand, buyers probably felt the opposite, especially if they were looking in competitive neighborhoods.
Median for Sale Up 5% vs Median Sold Price Up 14%
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 an 14% increase in the median sold price of a single family home in year over year numbers. Again this month, buyers thought homes were worth more than sellers, showing just how strong the buyers in the market are.
Source: Clarus Market Metrics, ACTRIS Sold Data
December 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 December 2015 Austin home sales below. The most expensive home that sold in December 2015 sold for $5,800,000 and the least expensive home sold for $75,000. Homes ranged in size from 480 sqft – 9,713 sqft with an average size of 2,287 sqft. The average price per square foot for a home that sold in Austin in December 2015 was $198.14 with the lowest being $43.84/sqft and the highest being $1,064.81/sqft. It took, on average, 47 days to sell a home in Austin and sellers received, on average, 95.35% 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||December 2015|
|Property Type||Single Family Homes||Number Sold||882|
|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 buy. Demand is down 3% and supply is up 1%. We expect those ratios to flip as we head into Spring. Though there is strong competition, buyers are still able to negotiate better deals in the Winter than they can in the Spring. Though it will seem like you have more time to make decisions, the most successful home buyers will make home buying a priority. Set alerts to be notified as soon as a home that fits your criteria hits the market. If it is a fit, check it out in person as quickly as you can. Most importantly, don’t be afraid to make aggressive offers, even though the median price has gone up. You just might get your offer accepted.
If you haven’t started your home search, now is the ideal time to do so. Waiting until Spring might give you more choices, but you’ll have to be more competitive to be successful. If this Spring is like the last three, expect multiple offers and overbids. Starting your search now during the seasonal slow down can help make the home buying process less stressful and more favorable financially. 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.
If you need to sell, there are still some market forces that favor sellers. Though it is taking a few more days to sell than last year, buyers are willing to pay more. Spend a little extra time preparing your home to sell so it really stands out as a value when it hits the market. Don’t expect as many showings as you would get in Spring, but remember you only need one person to fall in love with your house.
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 2.7 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. For more info about our Home Selling Program and why it is the best in Austin, check out Sell My Austin Home.
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.