Eleven Oaks Realty is proud to present their July 2013 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Housing Inventory Down 44%
As it’s been for the past several months, the biggest story in the Austin housing market comes by way of inventory. In July 2013, we saw a 44% decrease in months supply of inventory in year over year numbers with a slight decrease from June 2013 numbers to just over 1 1/2 months of single family home inventory currently on the market. In the more desirable Austin neighborhoods, we are seeing an even less inventory available, which is to be expected. July 2012 saw 2.9 months of inventory, which is indicative of a sellers market. July 2013’s 1 1/2 months of inventory shows an even stronger seller’s market, which matches what we saw in the market in July 2013 with multiple offers and overbids.
What does this mean to buyers? As we advised last month, if you’re in the market to buy, be proactive, especially if you’re looking in one of the more desirable neighborhoods or if you are in the market to buy a home that’s priced at $250,000 or below. Homes that are priced right are selling within a matter of days, many of them with multiple offers and for more than list price. Buyers can’t afford to wait a week to look at a home. Making home buying a priority will ensure you don’t miss out on a great house.
What does this mean to sellers? If you’re thinking about selling, get your home on the market as quickly as you can. We usually see a slow down in August with kids going back to school, last minute vacations, etc. Get your home ready to sell so you are ready to go after Labor Day when market activity increases. If you aren’t too thrilled with your neighborhood, or want to be in a better neighborhood, the money you will make on the home you need to sell will make up for the extra you might spend on the house you buy. We haven’t seen this extreme a seller’s market in Austin in years. Though rising a bit from historic lows of 3% or slightly below, interest rates are still incredibly low.
15% Fewer Homes on the Market than July 2012
In July 2013, we had 3,398 homes for sale in Austin, compared to 3,992 in July 2012. The decreased number of homes being put on the market confirms what we’ve been reading and hearing for months. People are moving to Austin and renters are deciding it’s time to stop paying rent.
Austin Median Home Price Up 15%
This month, we saw a 15% increase in the median home sale price of a home in Austin. In July 2013, the median home price was $301,000 compared to $262,000 in July 2012. 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 Neighborhood Market Reports.
Number of Sold Homes in Austin Up 15%
In July 2013, Austin saw a 15% increase in the number of homes sold from July 2012 to July 2013 numbers. In July 2013, we saw 1,207 homes sell in Austin compared to 1,054 in July 2012. The usual slowdown we see towards the end of July and August seemed to happen in June 2013 with an increase in July. Last year, we saw similar numbers of sales across June and July. With so much frenzied market activity in the Spring and early Summer, it seems buyers who had not been successful finally made their choices and either paid more, or settled for less than what they expected to purchase so they could have their kids in school by August.
25% More Austin Homes Under Contract
In July 2013, there were 1,200 homes that went pending compared to 960 in July 2012 marking a 25% increase in year over year numbers. 2013 has started out strong and continues to bring multiple offers to the most desirable properties. The usual slow down we see in late July and early August did not seem to materialize yet. It will be interesting to see if August continues to be just as strong as July.
Number of Homes Listed for Sale Up 17%
In July 2013, we saw 1,408 homes introduced to the market compared to 1,208 in July 2012. Looks like sellers who might not have been considering selling decided to strike while the iron was hot and get out of neighborhoods or homes they no longer liked. The pace of the market in Spring and early Summer was trending upwards so quickly, it looks like some sellers took the hint and put their homes up for sale. From market activity in the past week, it looks like this pace is slowing down a bit and we’ll see in the August report if that’s the case.
Number of Homes Taken Off the Market Up 5%
In July 2013, we saw 273 homes taken off the market compared to 259 homes in July 2012, marking a 5% increase in year over year numbers. We saw about 60 or so more homes taken off the market in July 2013 as we saw in June 2013, which as we mentioned last month, could be a function of the time of year but for a different reason. Some homeowners don’t want their kids to have to change schools mid-year. When they can’t get a buyer by the end of July, they decide to put their home sale on hold until next Summer when they try again.
Did your home expire? Check out our Austin Home Not Selling resources page to find out why.
Time to Sell Home in Austin Down 40%
In July 2012, it took, on average, 47 days to sell a home in Austin while in July 2013, it took around 28 days. A normal market is considered 90 days, so 28 days is incredibly fast, especially considering these are city wide figures. In the more desirable neighborhoods, we’re seeing this number go way down – some averaging just a few days.
Supply is Down 15% and Demand is Up 15%
This month we’ve seen a 15% decrease in supply (number of properties for sale) and a 15% increase in demand (number of sold properties). With more buyers and less inventory, it is not surprising we continued to see multiple offers and overbids in July 2013.
Median for Sale Up 11% vs Median Sold Price Up 15%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 11% increase in the median for sale price and a 15% increase in the median sold price of a single family home in year over year numbers. As we saw the last few months, sellers appear to be more successful at getting buyers to come up to their price, even though they are setting higher list prices, an indication of the strength of the market.
Source: Clarus Market Metrics, ACTRIS Sold Data
July 2013 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual hard numbers, we’ve included the figures for July 2013 Austin home sales below. The most expensive home that sold in July 2013 was $4,250,000 and the least expensive home sold for $55,000. Homes range in size from 300 sqft-7,497 sqft with an average size of 2,274 sqft. The average price per square foot was $167.15 with the lowest being $21.15/sqft and the highest being $2,358.33/sqft. It took, on average, 29 days to sell a home in Austin and sellers received, on average, 99.21% of their list prices.
|Beds||Baths||SqFt||Listing Price||LP/SqFt||Selling Price||SP/SqFt||SP/LP||SP/OLP||DOM|
|Status||Sold||Sold Date||July 2013|
|Property Type||Single Family Homes||Number Sold||1,221|
|Source:||ABoR Sales Data||Area||Austin|
July 2013 Days on Market Report
The overwhelming majority (74.94%) of the 1,221 homes that sold in Austin in July 2013 (915) sold in less than 30 days and received, on average, 100.02% of their list prices. As homes stayed on the market longer, sellers received less than their list prices with homes that have been for sale for 120 days or more receiving, on average, 96.27% of their list prices. The lesson here? Homes that are priced right from the beginning sell quickly and for list price, or even a little bit more.
|0-30 Days||31-60 Days||61-90 Days||91-120 Days||120+ Days|
|No. of Listings||915||152||69||31||63|
|Avg % SP/LP||100.02%||97.12%||96.75%||96.67%||96.25%|
July 2013 Price Analysis Report
The majority of the homes that sold in Austin in July 2013 were priced below $500,000, which is to be expected. You’ll also see that the lower priced homes sold faster than the higher priced homes, which is due largely in part to the increased market for homes below $500k. As we saw last month, this month homes in the $500k’s to $550k’s selling about as fast as homes in the $200k’s, which shows the strength of the market for trade up homes.
|Price Range||Quantity||Average DOM|
|$149,999 or under||90||17|
|$150,000 – $199,999||189||21|
|$200,000 – $249,999||196||13|
|$250,000 – $299,999||127||19|
|$300,000 – $349,999||136||26|
|$350,000 – $399,999||99||40|
|$400,000 – $449,999||90||30|
|$450,000 – $499,999||68||47|
|$500,000 – $549,999||40||15|
|$550,000 – $599,999||31||36|
|$600,000 – $699,999||48||46|
|$700,000 – $799,999||40||56|
|$800,000 – $899,999||18||37|
|$900,000 – $999,999||8||42|
|$1,000,000 or over||40||102|
July 2013 Summary Price Report
Below you’ll find a breakdown of the sales prices of homes in Austin. The average price of a home that sold in July 2013 was $380,422 and the median price was $300,500.
|Summary||List Price||Sale Price|
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 sell, selling when its a buyers market may hurt you on the selling end, but you’ll make it up on the buying 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 (again)…it’s time to sell. With inventory at record lows, a home that’s priced right will have no problem finding a buyer. Buyers again came out in record numbers yet again in July 2013 with a 25% increase in the number of contracts received by sellers in year over year numbers. As we head into August 2013, it will be interesting to see if we do see the usual market slow down. There doesn’t seem to be as many buyers in the market and homes are sitting on the market slightly longer. That being said, inventory is still incredibly low and there are still buyers out there. If you’re looking to sell, we can help you get top dollar for your home in the shortest time. For more info about the best home selling program in Austin, visit Sell My Austin Home.
If you’re a buyer, that doesn’t mean sit on the fence and wait. Interest rates have jumped up a bit, but are still at all time lows, which could mean the difference in hundreds of dollars to your payment if you wait until the makret slows down. As more and more inventory gets snatched up, you’ll find less and less available. Waiting until the market slows down could mean you could afford less home if interests rates go up. And, as buyers continue to snatch up everything, market values will go up as well. If you’re looking to get into the market, the best time to find a great deal is any time you can. For more info about our Home Buyer Representation Program, check out Austin Buyer Brokers.
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.