Eleven Oaks Realty is proud to present their May 2014 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Number of Homes Taken Off the Market Up 30%
The biggest story of this month’s Austin Real Estate Price Report comes by way of a new metric…number of homes taken off the market. In May 2014, we saw 203 homes taken off the market in Austin compared to 156 homes in May 2013, which marks a 30% increase in year over year numbers.
After working in this strong Austin real estate market, this metric does not come as a surprise to me. We’ve come across several sellers who’ve decide to test the value of their homes. If they don’t get the price they want, they’ll simply stay put. My guess would be of the 203 homes that were taken off the market, 190 of them were sellers testing the market. This is evidence that even though there is very little inventory, buyers are recognizing homes that are not a value and ignoring 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.
What does this mean to buyers? Don’t just jump at the first thing that comes up, even if you think it is not worth what you’d have to pay to get it. Some sellers are unrealistic in determining their home’s value. Don’t let anyone talk you into paying more than you’re comfortable for a house. Work with a Realtor who can help you evaluate the market, and you’ll be a homeowner in 2014. It might not happen as quickly as you’d like, but with a little patience, you’ll find the perfect house for you!
What does this mean to sellers? Though this market is strong, it is still a price sensitive market. Buyers are still comparison shopping and holding off if they don’t feel the home is worth what the seller is asking for it. If you have a unique property, testing the market is the only way you’ll know if a buyer is willing to pay what you’re asking for it. If you’re serious about selling your home and are alarmed by this figure, don’t be. All homes sell at a price. If you’re willing to be realistic and adjust your price for the market, your home will sell.
Austin Median Home Price Up 14%
This month we saw a 14% increase in the median home sale price of a home in Austin. In May 2014, the median home price was $341,995 compared to $300,000 in May 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.
Time to Sell Home in Austin Down 4%
In May 2014, it took 26 days to sell a home in Austin, on average, compared to 27 days in May 2013, marking a 4% decrease in year over year numbers. Even though we had a 30% increase in the number of homes taken off the market in Austin in May 2014, it still took less than 30 days to sell a home (on average). This tells me the market is still incredibly strong and homes that are priced right will find a buyer quickly.
Austin Housing Inventory Down 4%
May 2014, we saw 1.6 months of inventory on the market, compared to 1.7 months of inventory in May 2013, marking a 4% decrease in year over year numbers. We continue to see record low inventory, even as we head out of the busy Spring home buying season. Buyers who were not successful during Spring are still lurking, looking for a home. It will be interesting to see how these numbers change as we head into Summer and Fall.
Austin Homes Under Contract Up 1%
In May 2014, 1,180 homes went pending (under contract) in Austin compared to 1,170 in May 2013, marking a 1% increase in year over year numbers. Even though buyer demand is strong, we’re not seeing the same number of owners looking to sell, which is creating a shift in the supply and demand curve. As we’ve been saying for months now, most of the buyers in the market don’t have homes to sell locally, so they’re taking up a lot of the inventory without replacing.
No Change in Number of Homes on the Market
In May 2014, we had 3,304 homes for sale in Austin, compared to 3,304 in May 2013. As expected, the number of homes for sale is slowly inching up as we head into Summer. Spring and the early Summer is the busiest time of year to buy and sell homes. Parents who need to send kids to school in the Fall are looking to get their purchases wrapped up in the next month or so. It will be interesting to see how the remainder of the year shakes out.
Number of Sold Homes in Austin Down 11%
In May 2014, Austin saw an 11% decrease in the number of homes sold from May 2013 to May 2014 numbers. In May 2014, we saw 1,114 homes sell in Austin compared to 1,255 in May 2013. Remember, sold data is 30-45 days behind market activity. Many of the homes that sold in May went under contract in March and April, which was the height of our busy market. This number is lower than what I experienced working in this market. But, with so many buyers and so little inventory, it make sense we didn’t see as many sales as last year.
Number of Homes Listed for Sale Up 4%
In May 2014, we saw 1,629 homes introduced to the market compared to 1,564 in May 2013. This is again proof that there are more buyers than sellers in the market. It seems more sellers were confident in their home’s ability to sell and decided to give it a go this year. This should be good news for buyers still waiting for their home to pop up.
Supply Remains Constant and Demand is Down 11%
This month we no change in supply (number of properties for sale) and an 11% 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 12% vs Median Sold Price Up 14%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 12% increase in the median for sale price and a 14% 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.
Source: Clarus Market Metrics, ACTRIS Sold Data
May 2014 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for May 2014 Austin home sales below. The most expensive home that sold in May 2014 sold for $4,640,000 and the least expensive home sold for $45,000. Homes ranged in size from 624 sqft – 14,425 sqft with an average size of 2,366 sqft. The average price per square foot for a home that sold in Austin in May 2014 was $180.63 with the lowest being $17.31/sqft and the highest being $996.30/sqft. It took, on average, 28 days to sell a home in Austin and sellers received, on average, 99.21% 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||May 2014|
|Property Type||Single Family Homes||Number Sold||1,137|
|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 before the end of the Summer to maximize activity. We will start to see figures drop off in August. 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 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.