Eleven Oaks Realty is proud to present their November 2019 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 9%
The biggest story this month: median home prices in Austin up again this month. We sound like a broken record, but month after month, the median price in Austin increases. The median price of an Austin home in November 2018 was $379,950 compared to $415,000 in November 2019, up 9% ($35,050) in year over year numbers. For another month, Austin home prices are on a significant upswing, which should make home owners happy.
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? If you’re waiting for prices to go down, it seems you’ll be waiting a while. We’ve been doing this report for years and can count the number of months that we didn’t see an increase in median price from year to year on one hand. Austin is a booming town with high paying jobs and transplants pouring into the area. Transplants from more expensive cities see Austin real estate as cheap. They spend more in rent on a two bedroom apartment where they’re from than they do on a 5 bedroom luxury home here. So, they are happy to pay the prices that locals feel are astronomical. If you’re looking to buy, get in the market now while interest rates are still low. Waiting might mean paying more for less.
What does this mean to sellers? With supply down and prices up, sellers are poised to get top dollar for their homes as long as they position them as a value. Motivated buyers are in the market and are willing to pay more than they were last year. Though it’s taking 47 days to sell, sellers are getting more for their homes. Start the sales process early and you’ll be successful.
6% Decrease in Time to Sell Home in Austin
In November 2019, it took 47 days to sell a home in Austin, on average, compared to 50 days in November 2018, marking a 6% (3 home) decrease in year over year numbers. This year homes are selling faster than they were this time last year. It will be interesting to see if we see that trend continue into next month.
Number of Homes Taken Off the Market Saw a 12% Decrease
In November 2019, there were 275 homes taken off the market compared to 311 in November 2018. This marked a 12% decrease in year over year numbers.
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 Saw No Change
Austin saw essentially no change in the number of homes sold from November 2018 to November 2019. In November 2019, we saw 810 homes sell in Austin compared to 806 in November 2018 marking a 4 home increase in year over year numbers. We saw a decrease in home sales from October’s numbers which is to be expected this time of year.
35% Decrease in Austin Housing Inventory
In November 2019, we saw 2.1 months of inventory on the market, compared to 3.2 months of inventory in November 2018, showing a 35% decrease in year over year numbers. As we head into winter, we would expect inventory to increase, but we continue to dip into deeper seller’s market numbers.
Austin Homes Under Contract Up 8%
In November 2019, 815 homes went pending (under contract) in Austin compared to 752 in November 2018, marking an 8% (63 home) increase in year over year numbers. Though only a small increase, we are seeing stronger demand this year than last.
20% Decrease in Number of Homes on the Market
In November 2019, we had 2,789 homes for sale in Austin, compared to 3,487 in November 2018, showing a 20% (698 home) decrease in year over year numbers. Again we saw a significant decrease in supply, which will put pressure on buyers who need housing. The pinch will come from fewer choices versus more competition.
13% Decrease in Number of Homes Listed for Sale
In November 2019, we saw 757 homes introduced to the market compared to 866 in November 2018, marking a 13% (109 home) decrease in year over year numbers. With fewer new listings, inventory remains low. If this continues, we’ll be in extreme seller’s market territory.
Supply Down 20% and Demand Saw No Change
This month we saw a 20% decrease in supply (number of properties for sale) and no change in demand (number of sold properties).
Median for Sale Up 76% vs Median Sold Price Up 9%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 6% increase in the median for sale price and a 9% increase in the median sold price of single family homes in year over year numbers, proving buyers are willing to make strong offers on homes that fit their needs.
Source: Clarus Market Metrics, ACTRIS Sold Data
November 2019 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 2019 Austin home sales below. The most expensive home that sold in November 2019 sold for $3,800,000 and the least expensive home sold for $98,000. Homes ranged in size from 400 sqft – 6,330 sqft with an average size of 2,165 sqft. The average price per square foot for a home that sold in Austin in November 2019 was $247.81 with the lowest being $68.77/sqft and the highest being $1,190.25/sqft. It took, on average, 40 days to sell a home in Austin and sellers received, on average, 96.75% of their original list prices.
|Single Family Homes
|ABoR Sales Data
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. Though demand is unchanged, supply is down pretty significantly, which is causing inventory levels to plummet down to strong seller’s market numbers. Plus, with new listings are also down, we’ll continue to get deeper into a seller’s market if demand doesn’t slow. With two months of inventory on the market, buyers are having to make concessions if they want to find a home. If they find the perfect home, they’ll make an aggressive offer to ensure they are the winning bidder. Savvy sellers who are following the market will see now is the perfect storm. Most sellers are programmed to wait until spring, which might be a good strategy. However, if you want to get a good price for your home and take advantage of extremely low mortgage interest rates, get the process started now and you’ll take advantage of the winter buying market as well.
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. 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, keep in mind you typically get a better deal on a house in winter than you would on the same house in spring. With less competition, sellers are more motivated to make a deal. Also, interest rates are at historic lows. Combine a more competitive price and lower interest rates, your payment will likely be less than it would if you bought in spring. Talk is rates are bound to go up at some point. Interest rates are the single biggest driver of increases in payments. You could end up paying less per month for a more expensive home. Plus, you have this odd time of year on your side. Buyers who think we are approaching the slow time of year will become complacent. If you set alerts, check out new listings as soon as they’re listed and are prepared to make offers, you’ll beat other buyers to the best homes. And, if you’re ready to act, you can make an offer before the competition has time to see it. The best homes are still selling quickly, especially since there are fewer overall choices. You’ll want to give yourself ample time to make a decision. Get your search set up and start looking at new listings now. If you’re looking to buy, we can help you be successful. 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.
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.