Eleven Oaks Realty is proud to present their February 2014 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Time to Sell Home in Austin Down 21%
In February 2014, it took 37 days to sell a home in Austin, on average, compared to 46 days in February 2013, marking a 21% decrease in year over year numbers. Considering this figure is calculated city wide, in all price ranges, 30 something days to sell a home in February is low. But, this confirms our hunch from last month’s report that this year’s Spring home buying season has begun well before Spring.
What does this mean to buyers? As we’ve been saying for the past several months – if you’re looking for a house, it is important to be proactive. Get fully pre-approved before you start your search. Pre-approval letters with offers are mandatory in this market. Set up email alerts to notify you as soon as a home that meets your search criteria is listed. Carve out time during your week to see properties – the best properties might not last until the weekend. In multiple offers, know there is no “formula” that will guarantee you are the successful bidder. Properties in the best neighborhoods are selling for significantly higher than list price because there is enough demand where buyers who are afraid to be outbid and lose the house make very competitive offers. The most successful buyers are flexible, prepared, ready to move quickly and make competitive offers. Inventory is low, but you only need to find 1 house, not 20. Keep a positive attitude, monitor the market, try not to get discouraged and you’ll be a homeowner in 2014.
What does this mean to sellers? If you’re thinking about selling, now is the time. I can’t tell you how many times I’ve visited a home within an hour or two of when it was listed and waited in a line to get in. Buyers are ready to buy and waiting for new inventory. When it comes online, they are ready to pounce. Both long time renters and professionals relocating to Austin are flooding the market. It’s estimated 170 people move to Austin per day and the majority of them don’t want to waste money renting in Austin’s highly competitive and expensive rental market. Austin renters are tired of extreme rent hikes and are ready to find something more permanent now that mortgage rates are low. Take advantage of historically low housing inventory and low interest rates and move on to your next home.
Austin Housing Inventory Down 6%
Historic low inventory in February 2013 got 6% lower in February 2014. In February 2013, there was 1.7 months of inventory on the market compared to 1.6 months of inventory in February 2014. Though inventory has fluctuated over the past year, we still remain in an extreme buyer’s market. A normal market is considered 5-8 months to sell a home. Anything below 2 is an extreme seller’s market.
Austin Homes Under Contract Down 7%
In February 2014, 846 homes went pending (under contract) in Austin compared to 914 in February 2013, marking a 7% decrease in year over year numbers. Those who aren’t active in the Austin real estate market, would draw the conclusion demand was decreasing. However, when you consider decreased inventory, you’ll understand why there are multiple offers on the most desirable properties. Buyers without homes to sell are hitting the market in full force, eating up available inventory without selling a home to replace the one they bought. As Austin continues to be one of the fastest growing cities in the US, I would anticipate the increased demand to continue.
Austin Median Home Price Up 14%
This month, we saw a 14% increase in the median home sale price of a home in Austin. In February 2014, the median home price was $296,000 compared to $259,000 in February 2013. 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.
9% Fewer Homes on the Market
In February 2014, we had 2,339 homes for sale in Austin, compared to 2,580 in February 2013. We continue to see fewer homes on the market, an indication that sellers are either waiting until the kids get out of school to list or are staying put. The majority of buyers in Austin are coming from those relocating to Austin and those currently renting. Low interest rates, good jobs and seemingly affordable real estate has encouraged those with means to buy a home.
Number of Sold Homes in Austin Up 2%
In February 2014, Austin saw a 2% increase in the number of homes sold from February 2013 to February 2014 numbers. In February 2014, we saw 716 homes sell in Austin compared to 702 in February 2013. Remember, sold data is 30-45 days behind market activity. Many of the homes that sold in February went under contract in December and January, which is when the market was at it’s slowest. Keep that in mind when making offers. Comps lag the current market and will likely show the home is worth significantly less than list price.
Number of Homes Listed for Sale Down 4%
In February 2014, we saw 987 homes introduced to the market compared to 1,025 in February 2013. This is again proof that there are more buyers than sellers in the market. We’re starting to see the increase in the number of homes for sale, which is expected as we head into Spring.
Number of Homes Taken Off the Market Up 20%
In February 2014, we saw 138 homes taken off the market compared to 115 homes in February 2013, which is a 20% increase in year over year numbers. This shows that even though there is very little inventory, buyers are recognizing homes that are not a value and discarding them. All homes sell for the right price if they are exposed to enough buyers.
Did your home expire? Check out our Austin Home Not Selling resources page to find out why.
Supply is Down 9% and Demand is Up 2%
This month we saw a 9% decrease in supply (number of properties for sale) and a 2% increase in demand (number of sold properties).
Median for Sale Up 12% 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 12% increase in the median for sale price and a 14% increase in the median sold price of a single family home in year over year numbers. This shows sellers are setting higher list prices and buyers are continuing to offer more.
Source: Clarus Market Metrics, ACTRIS Sold Data
February 2014 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for February 2014 Austin home sales below. The most expensive home that sold in February 2014 sold for $3,773,000 and the least expensive home sold for $73,000. Homes ranged in size from 376 sqft – 8,831 sqft with an average size of 2,157 sqft. The average price per square foot for a home that sold in Austin in February 2014 was $175.35 with the lowest being $47.24/sqft and the highest being $795.21/sqft. It took, on average, 44 days to sell a home in Austin and sellers received, on average, 97.69% 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||February 2014|
|Property Type||Single Family Homes||Number Sold||732|
|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 sell. Inventory is at historic lows and buyers are ready to make highly competitive offers, sometimes within hours of it being listed. If you own a home in a desirable neighborhood and want to move, now is the time. Getting your home on the market now and target the busy Spring/Summer buying season when the most number of buyers are looking. With only a few weeks left before the busy season officially starts, now is the time to get your home ready to show. For more info about selling your home, visit Sell My Austin Home.
If you’re a buyer, stay proactive. Be ready to scout homes when they’re listed. Work with a Realtor who knows the market and knows strategies for multiple offers. They can help set you apart from the thousands of other buyers currently in the market. If you’re thinking of buying a home, we can help! We know the market and can help you become a homeowner in 2014. For more info about our Home Buyer Representation Program, check out Austin Buyer Representation.
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.