Eleven Oaks Realty is proud to present their May 2011 Austin Real Estate Price Report measuring activity in the Austin single family home market.
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79% More Homes Under Contract than May 2010
The biggest story in this month’s Austin real estate price report comes by way of number of homes that accepted a contract. In May 2011, we saw a 79% increase in the number of homes that accepted a contract (aka pending or under contract) with 1,086 homes accepting a contract in May 2011 vs only 608 in May 2010. Its clear, buyers are no longer on the fence and have come into the market in full force.
What does this mean for sellers? Take advantage of the increased number of buyers and get your homes on the market now. Get your home sold during the peak time and expose it to more buyers. Waiting until winter could likely mean less buyers and less money for your home.
Austin Median Home Price Up 8%
This month, we also saw a bump in the median home price in Austin with an 8% increase in year over year numbers. The median home price in May 2010 was $240,400 vs $260,362 in May 2011. We also saw an increase from April’s numbers, showing our typical Summer increase in prices. As more buyers get into the market during the Summer months, we would expect to see an increase in the median home price. This year is no different.
Austin Housing Inventory Continues to Decline to Historically Low Levels
For the last two months, the big story was the declining inventory. This month, we see an even steeper decrease in the amount of housing inventory on the market in Austin. In May 2011, we saw a 57% decrease in months supply of inventory from May 2010 numbers to 3.4 months. May 2011 numbers mark the lowest inventory we’ve seen in Austin in over 2 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 enter the peak Summer buying season.
Number of Sold Homes in Austin Down 16%
With the fewer number of pending sales (homes that accepted a contract) in May 2011, we saw an expected decrease in the number of homes sold in May 2011. In May 2011 we had 802 homes that sold vs 951 homes sold in May 2010. Looking at this number alone, sellers should be reluctant to sell their homes. However, when you consider the inventory lows and the record number of homes that went pending in May (that should close sometime in June), all signs are telling sellers to get into the market before its too late! We speculated last month there were buyers in the market waiting for the right house so they could make their move and as you saw with the record number of pending sales, our prediction seemed to have been right.
14% Fewer Austin Homes for Sale
Again, we saw a decrease in the number of homes for sale in Austin down 14% from May 2010 numbers. Last year at this time, there were 5,980 homes for sale while this year we only had 5,163 homes listed on the market. This decreased number of homes for sale is partially due to the large number of homes that were pending this month and partially due to the fact that sellers are still reluctant to sell.
Number of Homes Listed for Sale Up 1%
It appears some sellers have been taking our advice and putting their homes on the market. This month, we saw a 1% in crease in the number of homes listed for sale in Austin with 1,343 new listings in May 2011 vs 1,324 new listings in May 2010. March had the highest number of new listings with just under 1,600 and December had the fewest number of new listings at just about 600.
Number of Homes Taken Off the Market Down 16%
With such huge increases in the number of homes that went pending this month, this 16% decrease in the number of homes taken off the market (expired) is to be expected.
Time to Sell Home in Austin Up 5%
In May 2010, it took, on average, 59 days to sell a home in Austin while in May 2011, its taking around 62 days. I would consider this to be virtually constant.
Supply and Demand Down
As we saw in last month’s report, the supply and demand are both down from last year’s numbers. With the increased number of pending sales we saw last month, it will be interesting to see how these numbers change in June after the homes that went pending close escrow.
Median for Sale Down 2% vs Median Sold Price Up 8%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 2% increase in the median for sale price of a single family home in year over year numbers. The median sold price was up 8%, increasing $19,962 in year over year numbers. It seems sellers are getting more realistic with their pricing and buyers are paying a little it more than usual to get the homes they want.
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 two 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 came out in record numbers in May 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. 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.