Eleven Oaks Realty is proud to present their May 2014 Austin Foreclosure Market Report measuring activity in the single family home foreclosure market.
Austin Bank Owned Properties Sold Down 75%
May 2014 saw a 75% decrease in the number of bank owned homes sold in year over year figures. In May 2013, there were 51 bank owned homes that sold (closed escrow) compared to 13 in May 2014. Bank owned homes (foreclosures) accounted for just 1.2% of the total home sales in Austin, compared to 4.1% of the total sales in May 2013. The overall market saw an 11% decrease in the number of homes sold compared to last year’s numbers.
Austin Bank Owned Homes Under Contract Down 69%
Also trending downward was the number of bank owned homes, foreclosures, that accepted a contract. In May 2014, there were 11 bank owned homes that accepted a contract (pending) compared to 36 homes in May 2013 marking a 69% (25 home) decrease in year over year numbers. Bank owned homes accounted for only 0.9% of the homes that went under contract in May 2014 compared to 3.1% of homes that went under contract in May 2013. The full market saw a 1% increase 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 53%
In May 2014, we saw a 53% (19 home) decrease in the number of bank owned homes, foreclosures, listed for sale. In May 2013, there were 36 foreclosures (homes owned by the bank) listed for sale compared to just 17 in May 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 60%
The number of bank owned homes in Austin currently on the market went from 80 in May 2013, to 32 in May 2014 marking a 60% (48 home) decrease. The full market saw no change from number of homes for sale this time last year. The number of bank owned homes for sale made up just 1.0% of the market in May 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 Down 40%
In May 2014, banks took 3 homes off the market that didn’t sell compared to 5 in May 2013. It is interesting that even though banks are not emotional about selling real estate, they can also be unrealistic. Every home will sell at the right price.
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 58+ 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.