Eleven Oaks Realty is proud to present their November 2014 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 14%
For the third month in a row, the biggest story in this month’s Austin Real Estate Price Report comes by way of median home price. Though we are seeing the seasonal slow down in the Austin housing market as compared to Spring, we continue to see an increase in the median sold price. In November 2013, the median sales price for homes in Austin was $272,750 compared to $310,000 in November 2014, marking a $37,250, or 14% increase. Though it is taking longer to sell and demand is down, sellers who are patient are ultimately getting more for their homes than they would have last year.
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? Even though prices are up from last year, they are down from Spring 2014 and Winter is still the best time to buy a home in Austin. We are seeing fewer multiple offers, which means buyers have the opportunity to negotiate price and terms compared to Spring. Economists predict the Spring 2015 housing market will be strong for the third year in a row. Historically buyers who have bought in Winter have paid less than they would have in Spring. If you want to be a home owner in 2015, now is the time to start your search.
What does this mean to sellers? Though activity is down, buyers are still willing to pay more for homes this year than they were last year. If you’re looking to trade up, take advantage of the increased time to sell and higher prices. What you might miss on the selling side, you’ll make up on the buying side. And, you’ll get more time to make your decision. Trading up during Spring can be tricky to time and most end up having to find some sort of temporary rental when their house sells faster than they can find one to buy. If you’re strictly selling and can wait until Spring, you’ll likely get more for your home. If you can’t, now is still a strong market. And remember, you only need one buyer. If you’re looking to sell before the Spring, here are some tips for selling in Winter.
Number of Homes Taken Off the Market Up 21%
For the fourth straight month, we saw a significant increase in the number of homes taken off the market in Austin. In November 2013, there were 271 single family homes taken off the market compared to 328 in November 2014, marking a 21% (57 home) increase city wide. If we did some further analysis, we would likely find many of these homes were overpriced and instead of lowering their price, sellers decided to take them off the market and try again when the market picks up in Spring. If you don’t have to sell and you’re just testing the market, Spring is the best time to do so. 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.
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 8%
This month we saw a small decrease in the number of homes that sold in Austin. It seems fewer buyers are looking to buy this November compared to last November. In November 2014, Austin saw a 8% decrease in the number of homes sold from November 2013 to November 2014. In November 2014, we saw 705 homes sell in Austin compared to 766 in November 2013 marking an 8% (61 home) decrease in year over year numbers.
Austin Housing Inventory Down 6%
In November 2014, we saw 2.4 months of inventory on the market, compared to 2.5 months of inventory in November 2013, marking a 6% decrease in year over year numbers. Inventory has continues to decrease steadily, which is to be expected with seasonal housing market trends. We have about a month’s more inventory than we had during Spring, which explains the seemingly more availability for buyers. We are still in a pretty strong seller’s market and I would anticipate that to continue as Austin gains population.
Time to Sell Home in Austin Up 5%
In November 2014, it took 45 days to sell a home in Austin, on average, compared to 42 days in November 2013, marking a 5% (2 day) increase in year over year numbers. The upward trend we’ve been seeing since May is typical of the time of year. I would expect this number to trend downward as we head into January and February and more buyers enter the market.
Austin Homes Under Contract Up 11%
In November 2014, 806 homes went pending (under contract) in Austin compared to 726 in November 2013, marking an 11% increase in year over year numbers. The number of homes that go under contract in November are an indicator of what December will bring. It seems December’s closed figures should be a little bit stronger than last year.
Number of Homes on the Market Up 8%
In November 2014, we had 3,030 homes for sale in Austin, compared to 2,807 in November 2013, showing an 8% (223 home) increase in year over year numbers. It seems more sellers are confident in the direction of the market and are looking to cash out.
Number of Homes Listed for Sale Down 3%
In November 2014, we saw 759 homes introduced to the market compared to 782 in November 2013, marking a 3% decrease.
Supply Up 8% and Demand is Up 8%
This month we saw an 8% increase in supply (number of properties for sale) and an 8% decrease in demand (number of sold properties). With a decrease in demand and an increase in supply, it is clear now is the time for buyers who are looking for the best deals to buy. Buyers have more choices, more time to make a decision and less competition when buying in Winter.
Median for Sale Up 10% 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 10% 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 is another indicator that buyers are willing to pay more for homes they feel are a value.
Source: Clarus Market Metrics, ACTRIS Sold Data
November 2014 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for November 2014 Austin home sales below. The most expensive home that sold in November 2014 sold for $3,500,000 and the least expensive home sold for $88,500. Homes ranged in size from 528 sqft – 10,879 sqft with an average size of 2,192 sqft. The average price per square foot for a home that sold in Austin in November 2014 was $183.71 with the lowest being $49.72/sqft and the highest being $972.30/sqft. It took, on average, 41 days to sell a home in Austin and sellers received, on average, 96.17% 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||Nov 2014|
|Property Type||Single Family Homes||Number Sold||707|
|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 (again) is – it’s time to buy. In most markets, these numbers would signify it is time to sell, but because our market has been so strong for 3 years, buyers have to take the opportunities when they can get them. Winter has been the best time for buyers to get the best deals on homes, and this Winter is no exception. With supply up 8% and demand down 8%, buyers have more choices and less competition. If you’re looking to buy, 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 make the process as stress free as possible. For more info about buying a home, visit Buy a Home in Austin.
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 strong offers, as indicated by the increased median sold price. With 2.4 months of inventory, we are still in a strong seller’s market, just not as strong as the Spring market. If you’re looking to trade up, take advantage of the market advantages for buyers. What you might not get on the selling end will usually be recovered on the selling end. 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. If you just want to test the market, wait until Spring. 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, check out Sell My Austin Home.
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.