Eleven Oaks Realty is proud to present their May 2017 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 8%
The biggest story in this month’s Austin Real Estate Price Report comes by way of median home prices. For the 33rd month in a row, the median price of a home in Austin outpaced the previous year. The median price of an Austin home in May 2016 was $364,802 compared to $395,000 in May 2017, marking an 8% ($30,198) increase in year over year numbers.
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? With 33 straight months of price increases and no breaks, it doesn’t seem like this market is slowing down. This year is already off to a strong start. If you’re looking to buy this year, the sooner you start your search the better.
What does this mean to sellers? If you’re thinking of selling, you’ll want to get your home listed soon. We are in the middle of the busiest time of year for buyers. As demand increases, market forces tend to shift toward sellers. Though this year doesn’t seem to be as busy as last year, we are seeing prices go up. If you’re thinking of selling, spend some time preparing your home to meet the market. You will have a bit more competition, so you’ll want your home to stand out.
8% Increase in Time to Sell Home in Austin
In May 2017, it took 36 days to sell a home in Austin, on average, compared to 33 days in May 2016, marking an 8% (3 day) increase in year over year numbers.
Number of Homes Taken Off the Market Up 50%
In May 2017, there were 272 homes taken off the market compared to 181 in May 2016. This marked a 50% (91 home) increase in year over year numbers. This trend of more homes taken off the market is something we’ve seen for quite some time in Austin. It seems that some sellers are unrealistic about what they can get for their homes and instead of reducing their prices to a market appropriate level, they decide to take them off the market. Though the Austin market is strong, it is still price sensitive. Buyers are willing to pay top dollar, but not for homes that they don’t feel are a value.
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.
4% Increase in the Number of Sold Homes in Austin
In May 2017, Austin saw a 4% increase in the number of homes sold from May 2016 to May 2017. In May 2017, we saw 1,187 homes sell in Austin compared to 1,142 in May 2016 marking a 4% (45 home) increase in year over year numbers.
1% Increase in Austin Housing Inventory
In May 2017, we saw 1.9 months of inventory on the market, compared to 1.9 months of inventory in May 2016, marking a 1% increase in year over year numbers. This year, we’ve seen extremely low inventory levels. We typically would expect to see an increase as we head deeper into Summer. It will be interesting to see if this year shows the same trend.
Austin Homes Under Contract Up 3%
In May 2017, 1,349 homes went pending (under contract) in Austin compared to 1,315 in May 2016, marking a 3% (34 home) increase in year over year numbers. We have seen a steady increase of pending sales since January, which is to be expected with the historical trends of the Austin real estate market.
6% Increase in Number of Homes on the Market
In May 2017, we had 4,239 homes for sale in Austin, compared to 4,014 in May 2016, showing a 6% (225 home) increase in year over year numbers. With demand down slightly from last year, we would expect to see a bit more inventory.
8% Increase in Number of Homes Listed for Sale
In May 2017, we saw 1,687 homes introduced to the market compared to 1,568 in May 2016, an 8% (119 home) increase in year over year numbers. It seems sellers are confident in the direction of the market and are getting their homes listed.
Supply Up 6% and Demand Up 4%
This month we saw a 6% increase in supply (number of properties for sale) and a 4% increase in demand (number of sold properties). Though demand is up, supply is up slightly more, giving buyers a slight edge in a negotiation.
Median for Sale Up 7% 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 7% increase in the median for sale price and an 8% increase in the median sold price of a single family home in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
May 2017 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 2017 Austin home sales below. The most expensive home that sold in May 2017 sold for $6,750,000 and the least expensive home sold for $150,000. Homes ranged in size from 576 sqft – 10,828 sqft with an average size of 2,332 sqft. The average price per square foot for a home that sold in Austin in May 2017 was $217.19 with the lowest being $66.25/sqft and the highest being $840.71/sqft. It took, on average, 36 days to sell a home in Austin and sellers received, on average, 97.93% 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 2017|
|Property Type||Single Family Homes||Number Sold||1,199|
|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. With demand up 4%, sellers have a short window to capitalize before supply outpaces demand more than it is now. Though time to sell is up 8%, buyers are willing to pay, on average, 8% more than they were last year. If you’re a seller who needs to sell now, 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. 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. 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, start dipping your toe in the market now. Depending on your goals, you might start your search immediately, or wait until the end of Summer when demand decreases. If you’re looking for the most choices, start your search now. If you’re looking for the best deal, be patient and don’t be afraid to negotiate. Sometimes it takes sellers a while to come to the realization their house isn’t worth what they had hoped. Buyers who are patient and persistent can often get the deal done. If you’re looking to buy, we can help you be successful, even in this competitive market. We know the market and know how to get the best deal for a buyer. 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.