Eleven Oaks Realty is proud to present their May 2015 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Time to Sell Home in Austin Up 15%
The biggest story in this month’s Austin Real Estate Price Report comes by way of time to sell a home. In May 2015, it took 29 days to sell a home in Austin, on average, compared to 25 days in May 2014, marking a 15% (4 day) increase in year over year numbers. For the third straight month, it is taking buyers longer to make a decision. But, even though it takes them longer to make a decision, they are still willing to pay more than they were last year, which should be good news for Austin home sellers.
What does this mean to buyers? You can beat other buyers to the punch if you are proactive and scout homes as soon as they are listed. Even though the average is 29 days to sell, homes in the most desirable neighborhoods are selling in only a few days. The faster you can see home in person and make a decision, the less chance you’ll give others to snatch up your home.
What does this mean to sellers? Even though it is taking buyers a few more days to make a decision, they are still willing to pay more than they were last year. Sellers who take the time to prepare their homes to meet its new owner will attract more buyers and more money.
Austin Median Home Price Up 6%
For the ninth month in a row, the median price of a home in Austin outpaced last year. The median home price of an Austin home in May 2014 was $344,000 compared to $363,157 in May 2015, marking a 6% increase in year over year numbers. Again buyers are willing to pay more money to become home owners in Austin than they were last year. With relatively inexpensive housing compared to other big cities, a strong job market, lower cost of living and higher quality of life, I don’t see this market slowing down soon.
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.
Number of Homes Taken Off the Market Up 45%
For the tenth straight month, we saw a significant increase in the number of homes taken off the market in Austin. In May 2014, there were 165 single family homes taken off the market compared to 240 in May 2015, marking a 45% (75 home) increase city wide. Following the same trend we have seen all Spring, we are seeing significantly more homes taken off the market this year compared to last. I believe this is due to sellers looking to test the market and when they can’t get what they think their home is worth, they give up and decide to stay.
If you need to sell and your home was priced right, maybe there was something else going on. The biggest culprits we see are incorrect info in the MLS and poor marketing. Check out our Austin Home Marketing Plan to see how your homes would be marketed.
Having trouble selling your home? Check out our Austin Home Not Selling resources page to find out why.
Number of Sold Homes in Austin Down 4%
In May 2015, Austin saw a 4% decrease in the number of homes sold from May 2014 to May 2015. In May 2015, we saw 1,125 homes sell in Austin compared to 1,082 in May 2014 marking a 4% (43 home) decrease in year over year numbers. Though we saw a decrease in the number of sales from last year, we have seen a steady increase from Winter sales numbers, which is what we would expect to see given seasonal trends.
Austin Housing Inventory Down 3%
In May 2015, we saw 1.8 months of inventory on the market, compared to 1.8 months of inventory in May 2014, marking a 3% decrease in year over year numbers. Though a very small decrease, we are still hovering around extreme seller’s market numbers. With less new inventory coming online, we would expect inventory numbers to decrease next month.
Austin Homes Under Contract Up 5%
In May 2015, 1,199 homes went pending (under contract) in Austin compared to 1,138 in May 2014, marking a 5% increase in year over year numbers. We are consistently seeing more homes go under contract this year compared to last.
Number of Homes on the Market Up 6%
In May 2015, we had 3,562 homes for sale in Austin, compared to 3,372 in May 2014, showing a 6% (190 home) increase in year over year numbers. Even though buyers have more choices, there are fewer homes coming online, which will cause buyers to see a pinch in the coming months. Take advantage of the increased inventory now and you will already be in your home while others are competing for the homes available.
Number of Homes Listed for Sale Down 8%
In May 2015, we saw 1,498 homes introduced to the market compared to 1,630 in May 2014, marking an 8% (132 home) decrease. Last year, we saw a drop off of new listings in June. It will be interesting to see if this year shows the same trend.
Supply Up 6% and Demand is Down 4%
This month we saw a 6% increase in supply (number of properties for sale) and a 4% decrease in demand (number of sold properties).
Median for Sale Up 11% vs Median Sold Price Up 6%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 11% increase in the median for sale price and a 6% increase in the median sold price of a single family home in year over year numbers. This month sellers seem to be pricing higher than last year and though buyers are still willing to pay more, they aren’t willing to pay what sellers are asking if they feel it is too much. That being said, it seems sellers are willing to negotiate more than they were last year.
Source: Clarus Market Metrics, ACTRIS Sold Data
May 2015 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for May 2015 Austin home sales below. The most expensive home that sold in May 2015 sold for $4,850,000 and the least expensive home sold for $42,000. Homes ranged in size from 480 sqft – 11,009 sqft with an average size of 2,295 sqft. The average price per square foot for a home that sold in Austin in May 2015 was $200.72 with the lowest being $16.15/sqft and the highest being $666.67/sqft. It took, on average, 33 days to sell a home in Austin and sellers received, on average, 98.40% 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 2015|
|Property Type||Single Family Homes||Number Sold||1,099|
|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. Though supply is up, inventory is down and we aren’t seeing as much new inventory come online, which means fewer choices for buyers. With only 1.8 months of inventory on the market and median price up 6% from last year, buyers who want to be home owners seem to be willing pay for homes they see as a value. Spend some time preparing your home to sell and you’ll have no trouble finding a buyer.
If you’re a seller who needs to sell, work with a professional Realtor who can help you position your home as the best value on the market. There are still highly motivated buyers in the market who are ready to make stronger offers than they were last year. With 1.8 months of inventory, we are in a strong seller’s market. Check out our 88 Ways to Sell Your Home Faster and For More Money for some tips on how you can prepare your home to meet the market. Historically, homes that sold in Spring sell for more than at any other time of the year. For more info about our Home Selling Program and why it is the best in Austin, check out Sell My Austin Home.
If you’re looking to buy, take comfort in the fact demand is down a bit from last year, which means less competition. Supply and time to sell are also both up, which might give you just the opportunity you need to snag your next home. If you can be decisive, you’ll beat others to new listings and will have a much higher chance at getting your first choice home. Don’t get me wrong, the Austin market is still very competitive. But, if you are proactive, you’ve already won most of the battle. If you think now is the time to buy a home in Austin, we can help you find the right house in the right neighborhood for you and your family. We know the market and know how to get the best deal for a buyer possible. For more info about buying a home, visit Buy a Home in Austin.
Curious How Much You Could Sell Your Austin Home For?
Our Market Snapshot Tool is for you. With just your zip code, we’ll email you a detailed report showing what homes in your neighborhood sold for, how long it took to sell and how the market is trending. Though our Austin Real Estate Price Report is helpful in gauging the overall trend of the market, it doesn’t address neighborhoods specifically. If you’re looking for that type of report, put in your name and zip code below and our system will email you a Neighborhood Market Report.
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.