Eleven Oaks Realty is proud to present their January 2014 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Housing Inventory Down 19%
The biggest story to start 2014 was the same story we’ve seen for many months in 2013: Austin inventory is at all time lows. For those of you in the market to buy a home, this is not news. I am sure you waited in line to see a new listing more than once, saw multiple offers on almost every property and probably concluded there are fewer homes for sale than their are buyers. The numbers prove what we’ve been seeing on a day to day basis. In January 2014, we saw 1.5 months of inventory compared to 1.9 months back in January 2013. To put these numbers in perspective, a balanced market is considered 6 months of inventory with anything below 3 considered a seller’s market. Austin is in an extreme seller’s market.
What does this mean to buyers? If you’re looking for a house, be proactive. Set up email alerts to notify you as soon as a new home that meets your search criteria is listed. Carve out time during your week to see properties. The most successful buyers are flexible and ready to move quickly when a house that meets their criteria comes up. Inventory is low, but you only need to find 1 house, not 20. Keep a positive attitude, monitor the market and you’ll be a homeowner in 2014.
What does this mean to sellers? Get your home on the market as quickly as you can. Buyers have shown they aren’t waiting until Spring. Inventory is at all time lows and if you have a home in a desirable area, it will sell as long as it is priced for the market. The market is strong, but buyers still recognize an overpriced home when they see it. Your best strategy for getting the highest price is pricing your home attractively to gain as many offers as possible. Are you guaranteed multiple offers? No. But, you are guaranteed no offers if buyers determine your home is priced above the market.
No Change in Austin Homes Under Contract
Nearly the same number of homes accepted a contract in January 2014 and January 2013. In January 2014, there were 827 homes that went pending compared to 824 in January 2013 showing no change in year over year numbers. Though we saw essentially the same number of homes accept a contract, there is definitely more demand this year than we saw last year. Last year we did see lines in front of properties, but more in the trendy areas only. Now, we’re seeing lines at properties in trendy areas as well as areas in good school districts and affordably priced.
Austin Median Home Price Up 4%
This month, we saw a 4% increase in the median home sale price of a home in Austin. In January 2014, the median home price was $268,450 compared to $259,000 in January 2013. Median home price helps us see the distribution of homes being 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.
Time to Sell Home in Austin Down 16%
In January 2014, it took 47 days to sell a home in Austin, on average, compared to 56 days in January 2013. Though a decrease from December’s numbers, 47 days is a significant increase from the 27ish days it was taking during the Spring/Summer months. It is not unusual to see an increase in time to sell over the holidays, so that should not be alarming. In Austin over the past 2-3 years, our Spring home buying season has kicked off in January, which seems to be the same trend this year. It will be interesting to see how this number moves as we head into Spring.
10% Fewer Homes on the Market
In January 2014, we had 2,227 homes for sale in Austin, compared to 2,535 in January 2013. We continue to see fewer homes on the market, an indication that sellers are either waiting until Spring 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 Down 3%
In January 2014, Austin saw a 3% decrease in the number of homes sold from January 2013 to January 2014 numbers. In January 2014, we saw 536 homes sell in Austin compared to 555 in January 2013. Remember, sold data is 30-45 days behind market activity. Many of the homes that sold in January went under contract in November and December, which is when the market was at it’s slowest.
Number of Homes Listed for Sale Has Not Changed
In January 2014, we saw 861 homes introduced to the market compared to 860 in January 2013. This is again proof that there are more buyers than sellers in the market. The number of new listings did significantly increase from December 2013 new listings, which is another seasonal trend that we expected.
Number of Homes Taken Off the Market Up 20%
In January 2014, we saw 187 homes taken off the market compared to 156 homes in January 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 10% and Demand is Down 3%
This month we saw a 10% decrease in supply (number of properties for sale) and a 3% decrease in demand (number of sold properties).
Median for Sale Up 15% vs Median Sold Price Up 4%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 15% increase in the median for sale price and a 4% increase in the median sold price of a single family home in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
January 2014 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual hard numbers, we’ve included the figures for January 2014 Austin home sales below. The most expensive home that sold in January 2014 was $2,850,000 and the least expensive home sold for $52,000. Homes ranged in size from 616 sqft – 7,921 sqft with an average size of 2,135 sqft. The average price per square foot for a home that sold in Austin in January 2014 was $164.13 with the lowest being $20.00/sqft and the highest being $510.20/sqft. It took, on average, 46 days to sell a home in Austin and sellers received, on average, 97.84% 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||January 2014|
|Property Type||Single Family Homes||Number Sold||561|
|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. Last month we told you it was time to buy and this month, we’re back to our recommendation of most of 2013: time to sell. Inventory is at historic lows and buyers are ready to make offers on homes, sometimes within hours of it being listed. If you own a home in a desirable neighborhood and want to move, now is the time to do so. Getting your home ready to sell now will mean you are right on target to hit 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 go out and scout homes. Work with a Realtor who knows the market and knows the strategies for multiple offers. They can help you set yourself 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 get a great deal. 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.