Eleven Oaks Realty is proud to present their November 2012 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Housing Inventory Down 51%
The biggest story in this month’s numbers is the same as its been for the past several months – we’re still extremely low in inventory. In November 2012, we saw a 51% decrease in months supply of inventory from already very low October 2012 numbers to 2.3 months of inventory. November 2011 saw 4.8 months of inventory, a two and a half month increase of inventory from November 2012. This year we haven’t noticed the usual Winter slow down we’ve seen over the past several years. Instead, we are hovering around Spring numbers and continue to see heightened activity for this time of year. With the number of people relocating to Austin it is not surprising we are seeing a shortage of inventory as we have more buyers than sellers. But, what is surprising is the time of year people have chosen to relocate. Most people relocate at the end of the school year when it’s easier for their kids to make the transition. This year, the school schedule does not seem to have an effect on their move.
What does this mean to buyers? If you’re in the middle of your home search, you’ll still need to be proactive. Buyers are still getting good deals on homes, but they need to be ready to jump on an opportunity when they first see it. Though we haven’t yet seen the slow down we usually see in Winter, December has still been the best time to buy a home. It will be interesting to see if this year’s December figures continue to prove that.
21% Fewer Homes on the Market than November 2011
In November 2012, we had 2,959 homes listed for sale in Austin, compared to 3,736 in November 2011. As you can see below in the properties listed for sale numbers (which are up in year over year numbers), we have less properties for sale, but that’s not because we have fewer homes being listed. We actually have 9% more homes being listed than we had last year at this time. Buyers are still out in full force and they are still snatching up homes in record time, especially in neighborhoods with the best schools and with the best amenities. With record numbers of people moving to Central Texas, there aren’t enough homes to meet the demand. If you’re thinking of selling, think about doing so sooner rather than later to take advantage of the increased demand.
Austin Median Home Price Up 4%
This month, we saw a 4% increase in the median home sale price of a home in Austin. In November 2012, the median home price was $259,500 compared to just $250,000 in November 2011. Median home price helps us see the distribution of homes being 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 email us at info@11OaksRealty.com.
Number of Sold Homes in Austin Up 15%
In November 2012, we saw a 15% increase in the number of homes sold from November 2011 numbers. In November 2012, we saw 684 homes sell in Austin compared to 595 in November 2011. This month we only saw a small decrase in home sales from September 2012 and October 2012 numbers, indicating yet again the number of buyers that have turned out to take advantage of extremely low mortgage interest rates.
37% More Austin Homes Under Contract
In November 2012, there were 790 homes that went pending compared to just 576 in November 2011 marking a significant 37% increase. This remarkable increase from last year’s numbers is yet another indicator of the strength of the market and predicts December 2012 will be another strong month.
Number of Homes Listed for Sale Up 9%
In November 2012, we saw a 9% increase in the number of homes being introduced to the market than in November 2011. In November 2012, there were 775 homes listed for sale in Austin compared to 713 in November 2011. We’ve been saying for the last couple of reports, it’s time for sellers to consider putting their homes on the market to take advantage of the increased demand and it seems some of them have. These savvy sellers have decided to brave the winter selling months so they could take advantage of extremely low interest rates and fewer number of buyers in the market when they find their new home. Usually we recommend that sellers wait until Spring if they can, but this year is different. With the increased activity in the market, don’t wait to sell your home, especially if you have to buy a new home in the Austin area.
Number of Homes Taken Off the Market Down 18%
With such low inventory levels, homes that might not necessarily have been sold in a normal market are selling causing a significant 18% decrease in the number of homes that were taken off the market in year over year numbers. In November 2011, 393 homes were taken off the market and in November 2012, 327 were taken off the market. Sellers seem more realistic in their pricing and buyers seem more willing to shell out the cash needed to get into the homes they want. If demand continues to stay strong, I would expect the number of homes taken off the market to continue to decrease compared to last year’s figures. We usually see an increase in the number of homes that expire in December because a lot of listing agreements are written to go to the end of a calendar year. It will be interesting to see if that trend continues this year.
Did your home expire? Check out our Austin Home Not Selling resources page to find out why.
Time to Sell Home in Austin Down 23%
In November 2011, it took, on average, 73 days to sell a home in Austin while in November 2012, it is taking around 56 days. A normal market is considered 90 days, so 56 days is fairly low. In neighborhoods where schools are superior, we’re seeing this number down under 14 days with the best homes being sold in the first couple of days from when it was listed.
Supply is Down 21% and Demand is Up 15%
This month we’ve seen a 21% decrease in supply (number of properties for sale) and a 15% increase in demand (number of sold properties). Yet another indicator more residents are deciding to stay put while others continue to move to Austin in record numbers, even during the traditionally slow Winter months.
Median for Sale Up 17% vs Median Sold Price Up 4%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 17% increase in the median for sale price and a 4% increase in the median sold price of a single family home in year over year numbers. Sellers appear to be more successful at getting buyers to come up to their price, even though they are setting higher list prices, an indication of the strength of the market.
Source: Clarus Market Metrics, ACTRIS Sold Data
November 2012 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual hard numbers, we’ve included the figures for November 2012 Austin home sales below. The most expensive home that sold in November 2012 was $4,475,000 and the least expensive home sold for $34,979. Homes range in size from 480sqft-10,011sqft with an average size of 2,295sqft. The average price per square foot was $146.83 with the lowest being $35.81/sqft and the highest being $546.88/sqft. It took, on average, 51 days to sell a home in Austin and sellers received, on average, 95.55% of their list prices.
| Beds | Baths | SqFt | Listing Price | LP/SqFt | Selling Price | SP/SqFt | SP/LP | SP/OLP | DOM | |
|---|---|---|---|---|---|---|---|---|---|---|
| High | 7 | 6 | 10,011 | $4,950,000 | $598.74 | $4,475,000 | $546.88 | 121.1% | 130.1% | 438 |
| Low | 1 | 1 | 480 | $49,000 | $36.76 | $34,979 | $35.81 | 70% | 64.9% | 0 |
| Average | 3 | 2 | 2,295 | $365,440 | $150.36 | $353,864 | $146.83 | 97.84% | 95.5% | 51 |
| Median | 3 | 2 | 2,002 | $263,000 | $131.94 | $260,000 | $129.77 | 98.2% | 96.7% | 26 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | November 2012 |
| Property Type | Single Family Homes | Number Sold | 687 |
| Source: | ABoR Sales Data | Area | Austin |
November 2012 Days on Market Report
The overwhelming majority (53.57%) of the 687 homes that sold in Austin in November 2012 (368) sold in less than 30 days and received, on average, 98.9% of their list prices. As homes stayed on the market for longer, sellers received less than their list prices with homes that have been for sale for 120 days or more receiving, on average, 96.18% of their list prices. The lesson here? Homes that are priced right from the beginning sell quickly and for list price.
| 0-30 Days | 31-60 Days | 61-90 Days | 91-120 Days | 120+ Days | |
|---|---|---|---|---|---|
| No. of Listings | 368 | 101 | 77 | 55 | 86 |
| Breakdown % | 53.57% | 14.7% | 11.21% | 8.01% | 12.52% |
| Avg % SP/LP | 98.9% | 97.19% | 96.5% | 96.39% | 96.18% |
November 2012 Price Analysis Report
The majority of the homes that sold in Austin in November 2012 were priced below $400,000, which is to be expected. You’ll also see that the lower priced homes sold faster than the higher priced homes, which is due largely in part to the increased market for homes below $400k.
| Price Range | Quantity | Average DOM |
|---|---|---|
| $149,999 or under | 96 | 43 |
| $150,000 – $199,999 | 132 | 43 |
| $200,000 – $249,999 | 89 | 51 |
| $250,000 – $299,999 | 93 | 38 |
| $300,000 – $349,999 | 57 | 42 |
| $350,000 – $399,999 | 39 | 38 |
| $400,000 – $449,999 | 38 | 45 |
| $450,000 – $499,999 | 31 | 55 |
| $500,000 – $549,999 | 19 | 61 |
| $550,000 – $599,999 | 15 | 65 |
| $600,000 – $699,999 | 21 | 96 |
| $700,000 – $799,999 | 12 | 73 |
| $800,000 – $899,999 | 12 | 90 |
| $900,000 – $999,999 | 9 | 70 |
| $1,000,000 or over | 24 | 131 |
| Total | 687 | 51 |
November 2012 Summary Price Report
Below you’ll find a breakdown of the sales prices of homes in Austin. The average price of a home that sold in November 2012 was $353,891 and the median price was $260,000.
| Summary | List Price | Sale Price |
|---|---|---|
| High | $4,495,000 | $4,475,000 |
| Low | $49,000 | $34,979 |
| Average | $365,440 | $353,891 |
| Median | $263,000 | $260,000 |
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 (again)…it’s time to sell. With inventory hovering near record lows, a home that’s priced right should have no problem finding a buyer. Buyers again came out in record numbers yet again in November 2012 with a 37% increase in the number of contracts received by sellers. As we head into 2013, buyers who have been waiting for more inventory will start their searches again. Getting your home ready to sell now will mean you are ready when they are. If you’re looking to sell, we can help you get top dollar for your home in the shortest time. For more info about the best home selling program in Austin, visit Sell My Austin Home.
If you’re a buyer, that doesn’t mean sit on the fence and wait. Interest rates are at all time lows, which could mean the difference in hundreds of dollars to your payment. As more and more inventory gets snatched up, you’ll find less and less available. Waiting until Spring when there are more choices is what most inexperienced buyers choose to do. If demand continues to increase, this could mean much fewer choices (coupled with much higher prices) for those who wait. Smart buyers know Winter is the best time to find a good deal on a house. Historically, buyers have been able to negotiate great deals from sellers who need to sell during Winter. If you’re looking to get into the market, the best time to find a great deal is any time you can. For more info about our Home Buyer Representation Program, check out Buy a Home in Austin.
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 Resources and our Seller Resources for more tips.
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