Eleven Oaks Realty is proud to present their June 2014 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 real estate price report comes by way of Median Home Price which was up 10% in year over year numbers. Though we aren’t seeing as much activity in the market compared to the Spring home buying frenzy, buyers are still willing to pay more for homes than they were at this time last year. In June 2013, the median sales price for homes in Austin was $303,655 compared to $335,000 in June 2014, marking a $31,345 increase. 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? Be prepared to compete, especially for homes in the most desirable areas. Buyers who have lived through the Spring home buying frenzy are prepared to make competitive offers to get the property they want. Work with a Realtor who knows the market and can help you craft a market appropriate offer to have the highest chances of being successful.
What does this mean to sellers? The market is still strong. Though buyers aren’t coming out in the numbers they were coming before, the buyers that are in the market are still paying top dollar for homes. Get your homes on the market before interest rates creep up or before we get to our usual, winter slow down.
Austin Housing Inventory Up 3%
For the first time in month’s, we actually saw housing inventory up in year over year numbers, though not by much. In June 2014, we saw 1.9 months of inventory on the market, compared to 1.8 months of inventory in June 2013, marking a 3% increase in year over year numbers. Though inventory is up, it is still at very low levels comparatively speaking. We are still in an extreme seller’s market city-wide and an even more extreme seller’s market in the most desirable neighborhoods. If you’re looking to sell your home, take advantage of low inventory levels and get it on the market.
Number of Homes Taken Off the Market Up 12%
Like last month, we saw an increase in the number of homes take off the market and again that doesn’t surprise me. After two very strong years of a hot housing market in Austin, we are seeing some sellers test the market. They want a certain dollar amount for their home and put them on the market to see if they can get it. Usually they wait a couple of months and then, when they don’t get an acceptable offer, take their homes off the market. In this market, motivated sellers find buyers, no matter what condition their home is in. Every home in Austin will sell if exposed to the right buyers at the right price.
Having trouble selling your home? Check out our Austin Home Not Selling resources page to find out why.
Time to Sell Home in Austin Down 2%
In June 2014, it took ~27.8 days to sell a home in Austin, on average, compared to ~28.2 days in June 2013, marking a 2% decrease in year over year numbers, which is not even enough to justify the decrease. Clearly, motivated buyers are out in full force and aren’t waiting too long to make offers.
Austin Homes Under Contract Down 3%
In June 2014, 1,111 homes went pending (under contract) in Austin compared to 1,140 in June 2013, marking a 3% decrease in year over year numbers.
No Change in Number of Homes on the Market
In June 2014, we had 3,413 homes for sale in Austin, compared to 3,425 in June 2013.
Number of Sold Homes in Austin Down 3%
In June 2014, Austin saw an 3% decrease in the number of homes sold from June 2013 to June 2014 numbers. In June 2014, we saw 1,119 homes sell in Austin compared to 1,150 in June 2013.
Number of Homes Listed for Sale Down 2%
In June 2014, we saw 1,420 homes introduced to the market compared to 1,446 in June 2013. Though a drop off from May numbers, we’re still seeing a very strong turn out with sellers listing their homes. The problem is there are more buyers who do not have homes to sell that are gobbling up inventory and not replacing inventory. Though some sellers are moving out of the area, the majority are moving within Austin, causing a housing shortage.
Supply Remains Constant and Demand is Down 3%
This month we no change in supply (number of properties for sale) and a 3% decrease in demand (number of sold properties). Again this month, if you aren’t active in the market, you might characterize this market differently than we do. In the most desirable neighborhoods, demand is strong, with multiple offers and overbids. Instead of settling for a home in a less desirable area where demand isn’t as strong, buyers are choosing to wait for something in their target area. Though city-wide, market data shows demand is down, it is very neighborhood specific and does not account for buyers waiting for new inventory. If you think the market is slowing down, go to a new listing in one of Austin’s most desirable neighborhoods and see how many people show up to see it. Then, you’ll believe me.
Median for Sale Up 14% 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 14% 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. This shows sellers are setting higher list prices and buyers are continuing to offer more. Buyers who have been looking for a while are probably getting tired of being outbid and are making better offers, which is causing sellers to set higher prices and buyers to make even better offers.
Source: Clarus Market Metrics, ACTRIS Sold Data
June 2014 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for June 2014 Austin home sales below. The most expensive home that sold in June 2014 sold for $6,750,000 and the least expensive home sold for $66,500. Homes ranged in size from 560 sqft – 8,572 sqft with an average size of 2,328 sqft. The average price per square foot for a home that sold in Austin in June 2014 was $183.43 with the lowest being $57.16/sqft and the highest being $864.94/sqft. It took, on average, 27 days to sell a home in Austin and sellers received, on average, 98.96% 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||June 2014|
|Property Type||Single Family Homes||Number Sold||1,132|
|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 (again) it’s time to sell. Inventory is at historic lows and buyers are ready to make highly competitive offers, sometimes within hours of it being listed. If you own a home in Austin and want to move, now is the time. Get your home on the market now, before we see the seasonal winter slow down. Get your home ready to sell now and take advantage of the pent up demand leftover from Spring. For more info about selling your home, visit Sell My Austin Home.
If you’re a buyer, stay proactive and try not to get discouraged. For those of you who have been in the market for some time, getting outbid is a very frustrating experience. Remember, you only need to find one house and it could be listed tomorrow. Don’t give up and continue to make competitive offers and you’ll be an Austin homeowner in 2014. 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.