Eleven Oaks Realty is proud to present their July 2015 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 10%
The biggest story in this month’s Austin Real Estate Price Report comes by way of median home prices. For the eleventh month in a row, the median price of a home in Austin outpaced last year. The median home price of an Austin home in July 2014 was $318,000 compared to $349,000 in July 2015, marking a 10% increase in year over year numbers. For months we’ve been seeing stories of how the Austin real estate market is overvalued. Yet, every month we see an increase in the median sales price of a home.
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.
What does this mean to buyers? If you want to be a home owner in Austin in 2015, you have to be competitive. Five years ago, the market favored buyers. Buyers were able to negotiate the price down significantly. That doesn’t seem to be happening too much any more. But, the market doesn’t seem to be slowing down either. Wait and you just might end up paying even more, or being able to afford less if interest rates go up as expected.
What does this mean to sellers? If you’re thinking about selling, now is definitely the time to do it. With prices up, on average, about 10% from last year, sellers who take the time to prepare their homes to meet the market will sell for top dollar. The increase in prices and strong buyer demand probably won’t last forever, so take advantage while you can.
Time to Sell Home in Austin Up 11%
In July 2015, it took 34 days to sell a home in Austin, on average, compared to 30 days in July 2014, marking an 11% (4 day) increase in year over year numbers. For the past few months, we’ve seen an increase in time to sell homes in Austin. Though buyers are willing to pay more for homes than they were last year, they seem to be taking longer to make a decision.
Number of Homes Taken Off the Market Up 33%
For the twelfth straight month, we saw a significant increase in the number of homes taken off the market in Austin. In July 2014, there were 212 single family homes taken off the market compared to 281 in July 2015, marking a 33% (69 home) increase city wide. It seems there were quite a few sellers who tried to sell their homes and when they were unsuccessful at getting their price, they gave up instead of having a price reduction.
If you need to sell and your home was priced right, maybe there was something else going on. The biggest culprits we see are incorrect info in the MLS and poor marketing. Check out our Austin Home Marketing Plan to see how your homes would be marketed.
Having trouble selling your home? Check out our Austin Home Not Selling resources page to find out why.
Number of Sold Homes in Austin Up 1%
In July 2015, Austin saw a 1% increase in the number of homes sold from July 2014 to July 2015. In July 2015, we saw 1,141 homes sell in Austin compared to 1,127 in July 2014 marking a 1% (14 home) increase in year over year numbers.
Austin Housing Inventory Down 14%
In July 2015, we saw 2.1 months of inventory on the market, compared to 2.5 months of inventory in July 2014, marking a 14% decrease in year over year numbers. Though we are still seeing an increase from Spring/Summer lows, we still have less inventory than we did last year. That could be part of the reason why prices are going up. With just about 2 months of inventory, Austin is in a pretty strong seller’s market.
Austin Homes Under Contract Up 13%
In July 2015, 1,166 homes went pending (under contract) in Austin compared to 1,029 in July 2014, marking a 13% increase in year over year numbers. It seems buyer demand is lasting longer into the Summer than it did last year.
Number of Homes on the Market Up 4%
In July 2015, we had 3,922 homes for sale in Austin, compared to 3,778 in July 2014, showing a 4% (144 home) increase in year over year numbers.
Number of Homes Listed for Sale Up 4%
In July 2015, we saw 1,586 homes introduced to the market compared to 1,523 in July 2014, marking a 4% (63 home) increase. Interestingly, we saw an increase from June numbers, which is usually the opposite with traditional, seasonal trends. It seems sellers who missed the busy Spring market have confidence in the strength of the market to sell in the late Summer when things usually slow down.
Supply Up 4% and Demand is Up 1%
This month we saw a 4% increase in supply (number of properties for sale) and a 1% increase in demand (number of sold properties).
Median for Sale Up 10% vs Median Sold Price Up 10%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 10% increase in the median for sale price and a 10% increase in the median sold price of a single family home in year over year numbers. Sellers are pricing higher than they were last year and buyers are willing to pay it.
Source: Clarus Market Metrics, ACTRIS Sold Data
July 2015 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for July 2015 Austin home sales below. The most expensive home that sold in July 2015 sold for $6,500,000 and the least expensive home sold for $71,000. Homes ranged in size from 672 sqft – 8,048 sqft with an average size of 2,255 sqft. The average price per square foot for a home that sold in Austin in July 2015 was $198.61 with the lowest being $44.24/sqft and the highest being $1,208.85/sqft. It took, on average, 30 days to sell a home in Austin and sellers received, on average, 97.90% 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||July 2015|
|Property Type||Single Family Homes||Number Sold||1,150|
|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. Though supply is up slightly more than demand and it is taking longer to sell, buyers are also willing to pay about 10% more than they were last year. Sellers who prepare their homes to meet the market will have no trouble finding a buyer who is willing to pay top dollar for their homes. Thinking of doing some small upgrades to increase your home’s value? Chances are, they’ll pay off. Only want to make upgrades that will produce a positive return on your investment? We’ll work with you to determine which upgrades are worth your time and money and which are not.
If you’re a seller who needs to sell, work with a professional Realtor who can help you position your home as the best value on the market. There are still highly motivated buyers in the market who are ready to make stronger offers than they were last year. With 2.1 months of inventory, we are in a strong seller’s market. Check out our 88 Ways to Sell Your Home Faster and For More Money for some tips on how you can prepare your home to meet the market. Historically, homes that sold in Spring sell for more than at any other time of the year. For more info about our Home Selling Program and why it is the best in Austin, check out Sell My Austin Home.
If you’re looking to buy, make home buying a priority. You can’t check what’s for sale once a week and expect to find a home. It’s taking longer to sell homes, which means you have the opportunity to beat other buyers to the best new listings if you are proactive. Be clear on your wants and needs so you can make a quick decision whether or not the house will work for you. Even though the Austin market is still very competitive, it is still possible to buy the right home for you if you have a strategy. If you’re looking to buy, we can help you be successful, even in this competitive market. We know the market and know how to get the best deal for a buyer. For more info about buying a home, visit Buy a Home in Austin.
Curious How Much You Could Sell Your Austin Home For?
Our Market Snapshot Tool is for you. With just your zip code, we’ll email you a detailed report showing what homes in your neighborhood sold for, how long it took to sell and how the market is trending. Though our Austin Real Estate Price Report is helpful in gauging the overall trend of the market, it doesn’t address neighborhoods specifically. If you’re looking for that type of report, put in your name and zip code below and our system will email you a Neighborhood Market Report.
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.
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