Eleven Oaks Realty is proud to present their November 2013 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Time to Sell Home in Austin Down 26%
The biggest story in this month’s Austin real estate price report comes by way of the time it takes to sell a home in Austin. A nice change of pace from the inventory conversation we’ve been having for the past several months. In November 2013, it took just 43 days to sell a home in Austin, on average, compared to 58 days in November 2012. We’ve seen these numbers trending downward all year, why is it such a big deal this month? Glad you asked! We usually see a seasonal slowdown starting in November until about January/February due to the holidays. Like last year, we aren’t seeing the predicted slowdown either from the data or out in the market. While November numbers are still a bit early to predict what the numbers will show in December and January, it will be interesting to see what December’s numbers show.
What does this mean to buyers? Again, make home buying a priority! Other buyers are out scouting homes as soon as they hit the market and are making decisions faster then they ever have. Set aside time to look at homes and be prepared to make a decision quickly, especially if you’re looking in one of the more competitive micro markets. We’ve seen a lot of great deals lately. Historical numbers show buyers who buy in the winter months pay less than they would if they waited for the busier Spring/Summer months. Take advantage of low interest rates (which are predicted to go up) and be settled in your home before the rush starts.
What does this mean to sellers? Don’t wait! Experts predict interest rates are expected to go up in the coming months and mortgage regulations will tighten. Yes, we’ve been hearing this rate increase story for months as well, but it looks like this time it might be for real. The past few months we’ve seen rates inching up, not down. Buyers today have confidence in the market and are ready to make a purchase. Take advantage of low inventory and get your home ready to go on the market.
10% Fewer Homes on the Market Compared to November 2012
In November 2013, we had 2,726 homes for sale in Austin, compared to 3,015 in November 2012. We continue to see fewer homes on the market. We aren’t seeing fewer homes listed on the market, which speaks to the amount of buyer demand.
Austin Housing Inventory Down 18%
Though not the lead story this month, we are still seeing very little inventory in the market. In November 2013, we saw 2.3 months of inventory compared to 2.8 months back in November 2012 which is another indicator we will not see the predicted slowdown during the winter months.
Austin Median Home Price Up 5%
This month, we saw a 5% increase in the median home sale price of a home in Austin. In November 2013, the median home price was $271,812 compared to $259,000 in November 2012. 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 check out our Austin Home Values Report.
Number of Sold Homes in Austin Up 2%
In November 2013, Austin saw a 2% increase in the number of homes sold from November 2012 to November 2013 numbers. In November 2013, we saw 754 homes sell in Austin compared to 737 in November 2012. Statistically speaking, this is not a significant finding. But, it still speaks to the prediction we will not see the expected seasonal winter slow down.
4% More Austin Homes Under Contract
In November 2013, there were 742 homes that went pending compared to 716 in November 2012 marking a 4% increase in year over year numbers. Though not as significant as last month’s 18% increase in homes that went under contract, still a sign of a strong market.
No Change in the Number of Homes Listed for Sale
In November 2013, we saw 778 homes introduced to the market compared to 777 in November 2012. Even though buyer demand remains high, sellers are holding on to their properties. Numbers in the next few months will be very telling to determine whether sellers were just waiting until after the holidays to list their homes or if they are staying put.
Number of Homes Taken Off the Market Down 3%
In November 2013, we saw 303 homes taken off the market compared to 311 homes in November 2012, which only marks a 3% decrease. With 303 homes that couldn’t find a buyer in a market with such strong buyer demand, it looks like some sellers are still thinking we are in the Spring 2013 frenzy. Though buyers want to buy homes, they are still looking for value. Homes that don’t offer a value aren’t moving.
Did your home expire? Check out our Austin Home Not Selling resources page to find out why.
Supply is Down 10% and Demand is Up 2%
This month we saw a 10% decrease in supply (number of properties for sale) and a 2% increase in demand (number of sold properties). Though demand is down this month, it still outpaces inventory, so if you’re looking to sell, strike will the tables are still tipped in your favor and before the Winter slowdown.
Median for Sale Up 12% vs Median Sold Price Up 5%
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 only a 5% increase in the median sold price of a single family home in year over year numbers. As we saw last month, sellers are pricing their homes higher and buyers are appealing to sellers higher prices to a point, but are still negotiating.
Source: Clarus Market Metrics, ACTRIS Sold Data
November 2013 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 2013 Austin home sales below. The most expensive home that sold in November 2013 was $4,345,000 and the least expensive home sold for $68,000. Homes range in size from 624 sqft – 10,306 sqft with an average size of 2,238 sqft. The average price per square foot for a home that sold in Austin in November 2013 was $161.33 with the lowest was $51.83/sqft and the highest being $774.23/sqft. It took, on average, 39 days to sell a home in Austin and sellers received, on average, 96% 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||November 2013|
|Property Type||Single Family Homes||Number Sold||770|
|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 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 still hovering near two months, a home that’s priced right will have no problem finding a buyer. Though not as strong as we saw in Spring 2013, buyer demand is strong, especially when you consider we are entering our slow period. By the time your house is ready to put on the market, buyers will be back out after their Holiday home buying break. 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 still below 5%, which is incredibly affordable. Waiting to see what the mortgage markets do in the beginning of 2014 with increased regulations might end up costing you. 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 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.