Eleven Oaks Realty is proud to present their November 2015 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 14%
The biggest story in this month’s Austin Real Estate Price Report comes by way of median home prices. For the 15th month in a row, the median price of a home in Austin outpaced the previous year. This month, we saw a pretty significant increase when you consider the median price has been going up for some time. The median price of an Austin home in November 2014 was $309,500 compared to $351,990 in November 2015, marking a 14% 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? Even though we’re in the slower months, you’ll still have some stiff competition. Will it be as competitive as what you’ll see during Spring? Likely not. But, the numbers show there are still strong buyers who are willing to pay for a home they like. At the same time, it is also taking them longer to make decisions. So, being decisive, scouting properties as soon as they are listed and making offers, will help give you the competitive edge to be successful and not pay more than you have to.
What does this mean to sellers? If you need to sell this Winter, you should be pleased to see median home prices are back up to Spring/Summer highs. Though it is taking longer to sell, sellers are getting more than they were last year at this time. Interest rates are predicted to rise and if it happens before you get your house listed, it could impact your home sale. If you’re thinking of selling in Spring, talk to a Realtor now to get a sense for timing and what you need to do to prepare your home to meet the market. This way, you can take advantage of demand when it is at it’s peak.
Time to Sell Home in Austin Up 5%
In November 2015, it took 48 days to sell a home in Austin, on average, compared to 46 days in November 2014, marking a 5% (2 day) increase in year over year numbers. Though it is taking slightly longer to sell, most sellers would be happy to wait and get 14% more than they would have gotten last year.
Number of Homes Taken Off the Market Up 34%
In November 2015, there were 366 homes taken off the market compared to 274 in November 2014. This marked a 34% (92 home) increase in year over year numbers. It seems more sellers took their homes off the market before Thanksgiving than usual. In appreciating markets, we often see sellers testing the market. When they can’t get their price, they take their home off the market. Given the buyer demand we’re seeing in this market, homes that are priced right will have no trouble finding a buyer.
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 7%
In November 2015, Austin saw a 7% decrease in the number of homes sold from November 2014 to November 2015. In November 2015, we saw 687 homes sell in Austin compared to 738 in November 2014 marking a 7% (51 home) decrease in year over year numbers. This month we continue the trend of seeing a decreasing number of homes sell, both in year over year and month to month numbers.
Austin Housing Inventory Down 12%
In November 2015, we saw 2.5 months of inventory on the market, compared to 2.8 months of inventory in November 2014, marking a 12% decrease in year over year numbers. Last month, we predicted we would see an increase in inventory in November. However, it seems the opposite has happened. I believe most of the inventory decrease had to do with the number of homes that were taken off the market as opposed to homes that sold.
Austin Homes Under Contract Up 10%
In November 2015, 814 homes went pending (under contract) in Austin compared to 743 in November 2014, marking a 10% increase in year over year numbers. Similar to October, we had fewer closed transactions and more homes that went under contract. This discrepancy could be due to the new lending regulations extending escrow periods past 30 days.
3% Increase in Number of Homes on the Market
In November 2015, we had 3,204 homes for sale in Austin, compared to 3,120 in November 2014, showing a 3% (84 home) increase in year over year numbers.
Number of Homes Listed for Sale Up 9%
In November 2015, we saw 818 homes introduced to the market compared to 751 in November 2014, marking a 9% (67 home) increase. It seems this year sellers were more confident in their ability to find a buyer at this historically slower time of year.
Supply Up 3% and Demand is Down 7%
This month we saw a 3% increase in supply (number of properties for sale) and a 7% decrease in demand (number of sold properties). With an increase in supply and decrease in demand, sellers who need to sell quickly will have to make their homes appear as a value.
Median for Sale Up 12% 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 12% increase in the median for sale price and an 14% increase in the median sold price of a single family home in year over year numbers. For the first time in a few months, the median for sale price is less than the median sold price.
Source: Clarus Market Metrics, ACTRIS Sold Data
November 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 November 2015 Austin home sales below. The most expensive home that sold in November 2015 sold for $4,375,000 and the least expensive home sold for $103,000. Homes ranged in size from 100 sqft – 6,717 sqft with an average size of 2,251 sqft. The average price per square foot for a home that sold in Austin in November 2015 was $210.08 with the lowest being $71.47/sqft and the highest being $4,432.50/sqft. It took, on average, 42 days to sell a home in Austin and sellers received, on average, 95.78% 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 2015|
|Property Type||Single Family Homes||Number Sold||694|
|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 buy. Demand is down 7% and supply is up 3%. Buyers will be able to negotiate better deals with motivated sellers who need to move on before Spring. Though it will seem like you have more time to make decisions, the most successful home buyers will make home buying a priority. Set alerts to be notified as soon as a home that fits your criteria hits the market. If it is a fit, check it out in person as quickly as you can. Most importantly, don’t be afraid to make aggressive offers, even though the median price has gone up. You just might get your offer accepted.
If you haven’t started your home search, now is the ideal time to do so. Waiting until Spring might give you more choices, but you’ll have to be more competitive to be successful. If this Spring is like the last three, expect multiple offers and overbids. Starting your search now during the seasonal slow down can help make the home buying process less stressful and more favorable financially. 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.
If you need to sell, it’s not the worst time to do that either. Though it is taking a few more days to sell than last year, buyers are willing to pay more. Spend a little extra time preparing your home to sell so it really stands out as a value when it hits the market. Don’t expect as many showings as you would get in Spring, but remember you only need one person to fall in love with your house.
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 2.5 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. For more info about our Home Selling Program and why it is the best in Austin, check out Sell My Austin Home.
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.