The Dream Home Realty Group at Sky Realty is proud to present their June 2011 Austin Real Estate Price Report measuring activity in the Austin single family home market.
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53% More Homes Under Contract than June 2010
For a second month in a row, the biggest story came by way of number of homes that accepted a contract. In June 2011, we saw a 53% increase in the number of homes that accepted a contract (aka pending or under contract) with 1,067 homes accepting a contract in June 2011 vs only 697 in June 2010. Though it still seems sellers are sitting on the fence, buyers are seizing the opportunity with historically low interest rates and making a move to purchase homes with low monthly payments.
What does this mean for sellers? If you need to sell, take advantage of the increased number of buyers and low inventory (as you’ll see in the following graphs) get your homes on the market now. Once we get into August, we usually see a market slow down. Exposing your home to buyers during our peak Spring/Summer market will likely bring you more money than waiting until Winter.
Austin Median Home Price Down 1%
This month, we also saw a small downward tick in the median home price in Austin with a 1% decrease in year over year numbers. The median home price in June 2010 was $270,000 vs $266,000 in June 2011. As we predicted last month, we did see a small increase ($6,000) in the median home price from May 2011 numbers. If we follow last year’s trend, we should expect to see a small decrease in July 2011 numbers.
Austin Housing Inventory Continues to Decline to Historically Low Levels
For the last three months, the big story was the declining inventory. For the third month in a row, we’ve seen a decrease in the amount of housing inventory on the market in Austin. In June 2011, we saw a 53% decrease in months supply of inventory from June 2010 numbers to 3.4 months. June 2011 numbers mark the lowest inventory we’ve seen in Austin in over two and a half years. As sellers have still been reluctant to list their homes and buyers come out in record numbers, we could see these numbers dip even more as we continue through the peak Summer buying season.
What does this mean to sellers? If you are thinking of selling, do it now while buyers have fewer choices. Buyers are no longer sitting on the sidelines. Positioning your home as one of the best values on the market will help you sell your home quickly.
Number of Sold Homes in Austin Down 3%
With a 79% increase in the number of pending home sales (homes that accepted a contract) we saw in May 2011, the 3% decrease in year over year numbers of homes sold points to longer escrow periods. Homes that went under contract in May 2011 likely had escrow periods longer than 30 days and will likely close this month. These longer escrow periods may indicate buyers are choosing loan programs that require longer approval times. Usually, the types of loans that require longer approval times are the lower down payment loans. In June 2011 we had 916 homes that sold vs 893 homes sold in June 2010.
18% Fewer Austin Homes for Sale
Again, we saw a decrease in the number of homes for sale in Austin down 18% from June 2010 numbers. Last year at this time, there were 6,393 homes for sale while this year we only had 5,242 homes listed on the market. This decreased number of homes for sale is partially due to the large number of homes that went pending this month and partially due to the fact that sellers are still reluctant to sell.
Number of Homes Listed for Sale Down 3%
This month, we saw a 3% decrease in the number of homes listed for sale in Austin with 1,394 new listings in June 2011 vs 1,440 new listings in June 2010. The peak in March, followed by a small and steady decrease is something we usually see as we get deeper into the Spring/Summer peak months.
Number of Homes Taken Off the Market Down 13%
With such huge increases in the number of homes that went pending this month, this 13% decrease in the number of homes taken off the market (expired) is to be expected.
Time to Sell Home in Austin Up 9%
In June 2010, it took, on average, 66 days to sell a home in Austin while in June 2011, its taking around 72 days. Though buyers are coming out in record numbers and inventory is at an all time low, it seems buyers are being forced to buy inventory that has been on the market for several weeks for lack of choices.
Supply and Demand Down
As we saw in our last few reports, supply and demand are down from last year’s numbers. Last month we were curious to see how this month’s numbers looked when some of the pending sales closed. But, since it seems most of these homes will not close until this month, we may have to wait to see how these numbers shake out.
Median for Sale Constant vs Median Sold Price Down 1%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 0% change in the median for sale price of a single family home in year over year numbers. The median sold price was down 1%, decreasing $4,000 in year over year numbers. It seems although sellers are getting more realistic with their pricing, buyers are also negotiating hard to get what these homes at bargain prices.
Source: Clarus Market Metrics, ACTRIS Sold Data
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 the same as its been the last three months…its time to sell. With inventory at its lowest levels we’ve seen in the last 2+ years, dipping even further from last month’s 2 year plus low, a home that’s priced right should have no problem finding a buyer. Let me again stress, IF its priced right. Buyers again came out in record numbers in June 2011 and if the seasonal Summer uptick occurs again this year, there should be plenty of buyers in the market. But, if you’re thinking about selling, you should move quickly to capitalize on this peak market. It usually sees a drop off in August and September. For more info about the best home selling program in Austin, visit Sell My Austin Home.
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@AustinRealEstateHomesBlog.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 and Seller Resources for more tips.
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