Eleven Oaks Realty is proud to present their March 2014 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Time to Sell Home in Austin Down 9%
In March 2014, it took 31 days to sell a home in Austin, on average, compared to 34 days in March 2013, marking a 9% decrease in year over year numbers. As inventory continues to hover at historic lows and buyers get increasingly frustrated, I would expect time to sell a home in Austin to continue to decrease. In today’s market, homes that are seemingly overpriced and in inferior locations are not selling as quickly as a home priced right in a great location, but they are selling faster than they would in a more balanced market. The most desirable homes are selling in a few days and the less desirable homes are selling in less than a month, on average. Considering this number is city-wide average, 31 days is incredibly low.
What does this mean to buyers? Make home buying a priority and attack it like an important project. Get fully pre-approved before you look at homes. Pre-approval letters with offers are mandatory in this market. Have your Realtor set up email alerts to notify you as soon as a home that meets your search criteria is listed. Carve out time during the week to see properties – the best properties might not last until the weekend. Work with a Realtor who is flexible and responsive so you don’t miss out. For multiple offers, know there is no “formula” that will guarantee you are the successful bidder. Ignore list price. Instead, decide what this property is worth to you. Properties in the best neighborhoods are selling for significantly higher than list price. Buyers who are afraid to be outbid are making very competitive offers. The most successful buyers are flexible, prepared, ready to move quickly and make competitive offers. Though inventory is low, you only need to find 1 house, not 20. Keep a positive attitude, monitor the market, try not to get discouraged and you’ll be a homeowner in 2014.
What does this mean to sellers? If you’re thinking about selling, now is the time. Even if your home is not in the best location, or has a locational flaw, frustrated buyers who want to be done with their search are looking to these types of properties. They are ready to buy and waiting for new inventory. When it comes online, they are ready to pounce. Both long time renters and professionals relocating to Austin are flooding the market. It’s estimated 170 people move to Austin per day and the majority of them don’t want to waste money renting in Austin’s highly competitive and expensive rental market. Austin renters are tired of extreme rent hikes and are ready to find something more permanent now that mortgage rates are low. Take advantage of historically low housing inventory and low interest rates and move on to your next home.
Austin Housing Inventory Up 1%
Historic low inventory in March 2013 remained about constant in March 2014. In March 2013 and March 2014, there was 1.4 months of inventory on the market. Inventory has again dropped as we started of 2014 and continues to inch lower and lower. Combine low inventory with strong demand and it is no wonder we have multiple offers and overbids on nearly every home located in desirable neighborhoods.
Austin Homes Under Contract Down 11%
In March 2014, 1,049 homes went pending (under contract) in Austin compared to 1,183 in March 2013, marking an 11% decrease in year over year numbers. Last year our busy, Spring home buying season started December 26th. This year, it seemed be early February, so we are still ramping up. Those who aren’t active in the Austin real estate market, would draw the conclusion demand was decreasing. However, when you consider historic low inventory, you’ll understand why there are multiple offers on the most desirable properties. Buyers without homes to sell are hitting the market in full force, eating up available inventory without selling a home to replace the one they bought. As Austin continues to be one of the fastest growing cities in the US, I would anticipate the increased demand to continue.
Austin Median Home Price Up 9%
This month, we saw a 9% increase in the median home sale price of a home in Austin. In March 2014, the median home price was $299,900 compared to $275,000 in March 2013. 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.
10% Fewer Homes on the Market
In March 2014, we had 2,613 homes for sale in Austin, compared to 2,909 in March 2013. We continue to see fewer homes on the market, an indication that sellers are either waiting until the kids get out of school to list or are staying put. Next month’s numbers will be a better indication. 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 11%
In March 2014, Austin saw an 11% decrease in the number of homes sold from March 2013 to March 2014 numbers. In March 2014, we saw 814 homes sell in Austin compared to 916 in March 2013. Remember, sold data is 30-45 days behind market activity. Many of the homes that sold in March went under contract in January and February, which was only the very beginning of our busy market. Keep that in mind when making offers. When the market is on the way up, comps lag the current market and will likely show the home is worth significantly less than list price. Because demand is so high, frustrated buyers are ignoring list price and making offers according to what it is worth to them. These figures are often higher than what most sellers are asking, especially in the most desirable neighborhoods.
Number of Homes Listed for Sale Down 11%
In March 2014, we saw 1,205 homes introduced to the market compared to 1,357 in March 2013. This is again proof that there are more buyers than sellers in the market. We’re starting to see the increase in the number of homes for sale, which is expected as we head into Spring. Next month’s numbers will be a better indicator of whether sellers are holding out until the kids get out of school, or if they have decided to stay in their homes.
Number of Homes Taken Off the Market Up 29%
In March 2014, we saw 133 homes taken off the market compared to 103 homes in March 2013, which is a 29% 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.
Having trouble selling your home? Check out our Austin Home Not Selling resources page to find out why.
Supply is Down 10% and Demand is Down 11%
This month we saw a 10% decrease in supply (number of properties for sale) and an 11% increase in demand (number of sold properties). 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 on the most desirable properties. 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.
Median for Sale Up 15% vs Median Sold Price Up 9%
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 9% 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. But, there are still unrealistic sellers in the market who think their homes are worth more than buyers do, which explains the discrepancy in for sale versus sold figures.
Source: Clarus Market Metrics, ACTRIS Sold Data
March 2014 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for March 2014 Austin home sales below. The most expensive home that sold in March 2014 sold for $3,200,000 and the least expensive home sold for $76,000. Homes ranged in size from 676 sqft – 9,469 sqft with an average size of 2,219 sqft. The average price per square foot for a home that sold in Austin in March 2014 was $172.60 with the lowest being $54.47/sqft and the highest being $790.75/sqft. It took, on average, 36 days to sell a home in Austin and sellers received, on average, 99.50% 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||March 2014|
|Property Type||Single Family Homes||Number Sold||838|
|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. 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 and target the busy Spring/Summer buying season when the most number of buyers are looking. We are just now entering the busy season. Get your home ready to sell now and take advantage of the pent up demand. For more info about selling your home, visit Sell My Austin Home.
If you’re a buyer, stay proactive. Be ready to scout homes when they’re listed. Work with a Realtor who knows the market and knows strategies for multiple offers. They can help set you 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 become a 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.