Eleven Oaks Realty is proud to present their April 2014 Austin Foreclosure Market Report measuring activity in the single family home foreclosure market.
Austin Bank Owned Properties Sold Down 64%
April 2014 saw a 64% decrease in the number of bank owned homes sold in year over year figures. In April 2013, there were 36 bank owned homes that sold (closed escrow) compared to 13 in April 2014. Bank owned homes (foreclosures) accounted for just 1.5% of the total home sales in Austin, compared to 3.3% of the total sales in April 2013. The overall market saw a 21% decrease in the number of homes sold compared to last year’s numbers.
Austin Bank Owned Homes Under Contract Down 61%
Also trending downward was the number of bank owned homes, foreclosures, that accepted a contract. In April 2014, there were 15 bank owned homes that accepted a contract (pending) compared to 38 homes in April 2013 marking a 61% (23 home) decrease in year over year numbers. Bank owned homes accounted for only 1.3% of the homes that went under contract in April 2014 compared to 3.1% of homes that went under contract in April 2013. The full market saw a 4% decrease in the number of homes that went pending compared to last year at this time, showing just how small a percentage the distressed market takes in Austin.
Austin Bank Owned Listed for Sale Down 66%
In April 2014, we saw a 66% (21 home) decrease in the number of bank owned homes, foreclosures, listed for sale. In April 2013, there were 32 foreclosures (homes owned by the bank) listed for sale compared to just 11 in April 2014. Because our market in Austin is on such an upward trend, it seems sellers who are under water are able to sell their homes before they go into foreclosure, which is keeping our bank owned inventory low. As far as proposed “shadow inventory,” I believe if banks had homes to sell in Austin, they would. Austin is the perfect market for banks to regain some of their losses. This is a very strong market and banks would be eager to unload any inventory they might have.
Austin Bank Owned Homes Currently for Sale Down 65%
The number of bank owned homes in Austin currently on the market went from 83 in April 2013, to 29 in April 2014 marking a 71% (54 home) decrease. The full market was down 7%, which is only a small fraction of the bank owned market. Number of bank owned homes for sale made up just 1.0% of the market in April 2014. It seems buyers are recognizing deals with buying bank owned homes and moving them off the market as quickly as they are listed.
Austin Bank Owned Homes that Didn’t Sell Up 300%
In April 2014, banks took 4 homes off the market that didn’t sell compared to 1 in April 2013. As with the overall market, more banks are being forced to come to the realization the homes they are trying to sell aren’t worth what they want. It seem April 2014 was the month for sellers to get realistic about their prices. On the flip side, 4 homes is not a huge number either. In every other market, we’d expect a much higher number of bank owned homes not to sell. They are usually in poor condition and require some TLC before moving in. Our market has been so hot the past few years, though, an increase of 3 homes in a month can mean a huge percentage of the overall market. Bank owned homes taken off the market in April 2014 were 2.6% of the total homes that were taken off the market, which is higher than we’ve seen in months.
What Do Austin Foreclosure Numbers Mean for Buyers?
As we’ve been saying for months, if you are pursuing foreclosures in Austin as part of your home buying strategy, make it just that – part of your strategy. With so few bank owned homes on the market in Austin, you should open up your search to both homes owned by the bank and homes owned by traditional sellers. Remember, the traditional seller has to compete with bank owned properties if they want to get their homes sold.
Looking to Buy a Foreclosure in Austin?
With a combined 55+ years of experience, our team knows how to get banks to accept your offers, even in a competitive market like we’re seeing here in Austin. For more, check out Guide to Buying Foreclosures in Austin and our Buying a Home in Austin Guide. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation conversation. Together we can come up with the best strategy for you to buy a bank owned home in 2014.