The Dream Home Realty Group at Sky Realty is proud to present their February 2011 Austin Real Estate Price Report measuring activity in the Austin single family home market.
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Austin Housing Inventory Down 19%
At its lowest point since April 2010, months supply of single family home inventory dropped 19% in year over year numbers. February 2011 had 4.2 months of unsold inventory on the market whereas February 2010 had 5.2 months of unsold inventory on the market. With median price still inching up (as you’ll see in the chart below) and inventory at a low, it seems now may be the time to sell.
25% Fewer Homes Listed
Perhaps the biggest story in our February 2011 Real Estate Price Report can be seen in the number of homes listed. In year over year comparisons, 25% fewer homes were listed in Austin in February. Last year, we saw the Spring buying season begin to take off in February with 1,339 homes listed while this year’s number hovered around January 2011’s number at 1,009.
Perhaps sellers are hedging their bets and waiting for Spring to really hit before making a move. But, if you’re one of those waiting to see what the market will do, remember, there are still buyers out there (Jauary 2010 saw the highest number of pending sales since July 2010). With less inventory on the market, you’re chances of selling improve.
Median Sold Price Up 5%
Continuing the trend send in January 2011, home prices are inching up again in February. In year over year comparisons, the median home price of a single family home in Austin is up 5% from $229,750 in February 2010 to $241,500 in February 2011. With fewer homes on the market and therefore less to choose from, it seems Austin home buyers are willing to pay more for the homes they want.
Gap Between For Sale and Sold Prices Continues to Tighten
As we saw in January’s Real Estate Price Report, the gap between the median for sale price and the median sold price continues to tighten in February. The median price of for sale homes is down 2% from February 2010 numbers, while the median price of sold homes is up 5%. Sellers seem to be getting more realistic about pricing while buyers are reacting to the decreased levels of inventory.
Sold Homes Down 12%
With sold homes up 29% and under contract homes up 17% in January 2011, we expected to see an increase in sold homes in February. But, February 2011’s numbers show a 12% decrease in sold homes vs February 2010. January saw 635 homes go under contract and 443 homes sold whereas February 2011 saw 724 homes go under contract and 446 homes sold.
Typically, it takes 30-45 days to close escrow in Austin, so you’d expect to see most of the homes that went pending in January sell in February. This discrepancy in the numbers shows a much longer escrow period, which could mean many of the homes that went pending in January were short sales and they’re waiting for an answer from the bank, or they were brand new homes. If they were short sales, its likely many of them will take months to close or will go into foreclosure and be put back on the market as bank owned homes. The next several months will be telling.
Number of Pending Sales Up 2%
In year over year comparisons, the number of homes that went under contract in February was 724 in 2011 and 712 in 2010. Although this is a 2% increase, we pretty much look at this as flat considering the margin was only 12 homes. Last year’s spring buying season started to take off in February. It will be interesting to see what March’s report brings.
Austin Homes for Sale Down 13%
The number of Austin homes for sale is down 13% in February year over year comparisons. February 2011 had 4,098 homes for sale, while February 2010 had 4,717 homes for sale. As sold numbers were down this month, what’s really contributing to this decrease in homes for sale are the fewer number of homes that are coming on the market and the more homes that are expiring and not being relisted.
Average Time to Sell a Home in Austin Up 31%
Another telling stat comes by way of average days on market, or average time to sell a home in Austin. In year over year comparisons, it took 20 more days to sell a home in February 2011 than it did in February 2010, showing a 31% increase. With the median home price up 5%, it seems sellers are simply waiting longer to get their price. I would predict this number to go down as the months supply of homes decreases.
Number of Expired Homes Up by 10%
The number of homes that expired, or number of homes that were taken off the market without producing a sale, are up by 10% in February year over year comparisons. 359 homes expired in February 2011 while only 327 expired in February 2010. Combine this figure with the 25% decrease in new listings and it appears sellers who could not produce a sale are taking their homes off the market, at least for the time being.
Supply and Demand – Austin Homes
As we saw in the number of homes for sale and the number of homes sold, both numbers are down in February year over year comparisons. This graph helps you get a visual sense of the supply and demand of Austin homes.
Source: Clarus Market Metrics, ACTRIS Sold Data
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@AustinRealEstateHomesBlog.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 and Seller Resources for more tips.