Eleven Oaks Realty is proud to present their December 2018 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 5%
The biggest story this month: median home prices in Austin up again this month. The median price of an Austin home in December 2017 was $374,751 compared to $395,000 in December 2018, up 5% ($20,249) in year over year numbers. Though demand has ebbed and flowed, we have seen prices consistently increase over the last few years. Not drastically, but steadily.
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? As prices have been increasing, it doesn’t appear that waiting is going to save any money for buyers. If you’re looking to buy, get your home search started soon. Typically we see the best deals in winter before the spring market picks up. Aim to finish your home search before the surge of buyers comes.
What does this mean to sellers? While prices are still up, demand is down pretty significantly, which means your home will have to stand out as a value. But, value doesn’t mean pricing lower. It means preparing your home to meet the market, being accommodating for showings and responding to all offers. Sellers who are prepared to face the market and have patience are successful.
4% Decrease in Time to Sell Home in Austin
In December 2018, it took 59 days to sell a home in Austin, on average, compared to 61 days in December 2017, marking a 4% decrease in year over year numbers.
Number of Homes Taken Off the Market Up 22%
In December 2018, there were 415 homes taken off the market compared to 341 in December 2017. This marked a 22% (74 home) increase in year over year numbers. This increase in the number of homes taken off the market is something we’ve seen for months in the Austin real estate market. Sellers who are unrealistic about price and condition are giving up on their home sale rather than making the necessary adjustments.
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 20%
In December 2018, Austin saw a 20% decrease in the number of homes sold from December 2017 to December 2018. In December 2018, we saw 803 homes sell in Austin compared to 1,009 in December 2017 marking a 20% decrease (206 homes) in year over year numbers. This winter, buyers set aside their home search more than they have in previous years. It will be interesting to see what renewed interest the spring market will bring.
14% Decrease in Austin Housing Inventory
In December 2018, we saw 2.5 months of inventory on the market, compared to 2.9 months of inventory in December 2017, showing a 14% decrease in year over year numbers. Though demand is down, supply is also down, which has created a reduction in inventory. With fewer choices, the buyers in the market are paying more for homes they see as a value, which is keeping prices on the upswing.
Austin Homes Under Contract Down 1%
In December 2018, 708 homes went pending (under contract) in Austin compared to 714 in December 2017, marking a 1% (6 home) decrease in year over year numbers.
8% Decrease in Number of Homes on the Market
In December 2018, we had 2,861 homes for sale in Austin, compared to 3,097 in December 2017, showing an 8% (236 home) decrease in year over year numbers. With inventory numbers already low this year, even a small drop will be felt by buyers looking for more choices.
9% Decrease in Number of Homes Listed for Sale
In December 2018, we saw 512 homes introduced to the market compared to 561 in December 2017, marking a 9% (49 home) decrease in year over year numbers.
Supply Down 8% and Demand Down 20%
This month we saw a 8% decrease in supply (number of properties for sale) and a 20% decrease in demand (number of sold properties).
Median for Sale Up 3% vs Median Sold Price Up 5%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 3% increase in the median for sale price and a 5% increase in the median sold price of a single family home in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
December 2018 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 2018 Austin home sales below, make sure to check the Vital Developers options if you are interesting on real estate investing this year. The most expensive home that sold in December 2018 sold for $3,450,000 and the least expensive home sold for $156,000. Homes ranged in size from 624 sqft – 8,273 sqft with an average size of 2,171 sqft. The average price per square foot for a home that sold in Austin in December 2018 was $233.48 with the lowest being $82.29 /sqft and the highest being $1,500/sqft. It took, on average, 50 days to sell a home in Austin and sellers received, on average, 95.3% 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||812|
|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. With demand down, you won’t have as much competition and motivated sellers will be willing to make a deal. As we head into the spring market, we would anticipate demand increasing, which will give sellers more leverage. 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.
If you’re looking to sell, it’s time to get your house ready for the spring market. If this year is like nearly every year previous, buyer activity will start to increase as we get further into spring. Spend some time preparing your house to sell now and you’ll be ready when that flood of buyers hits the market.
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.
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.