Eleven Oaks Realty is proud to present their October 2014 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 15%
For the second 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 still seeing a slower housing market as compared to Spring, we continue to see an increase in the median sold price of a home in Austin. In October 2013, the median sales price for homes in Austin was $274,007 compared to $315,000 in October 2014, marking a $40,993, or 15% increase. Though we are seeing price reductions in many segments of the market, the final sales prices are still significantly higher than last year. Even though we’re seeing less activity, buyers are still willing to pay more for a home in Austin than they were last year, which should be delightful news for sellers.
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? We are in the midst of the best time to buy a home in Austin. Though prices are up from last year, buyers are getting more time to make their decision and are able to negotiate. If you experienced any of the Spring home buying market, you know buyers sometimes only had hours to make a decision and there was really no negotiation. This market, though still very strong, is a more business like market to buy.
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 39%
For the third straight month, we saw a significant increase in the number of homes taken off the market in Austin. In October 2013, there were 263 single family homes taken off the market compared to 366 in October 2014, marking a 39% (103 home) increase city wide. Again, it is clear that sellers who are unrealistic with pricing will not be successful in this market. Though buyers are willing to pay more for homes that they feel are priced competitively, they aren’t willing to overpay. Sellers who set their prices too high, or who didn’t take the time to make their home a value to a buyer, are seeing how price sensitive buyers are.
Having trouble selling your home? Check out our Austin Home Not Selling resources page to find out why.
Number of Sold Homes in Austin Up 4%
This month we saw a slight increase in the number of homes that sold in Austin. Though the market has slowed since Spring, it is moving a bit faster than it was last year at this time. In October 2014, Austin saw a 4% increase in the number of homes sold from October 2013 to October 2014. In October 2014, we saw 902 homes sell in Austin compared to 864 in October 2013.
Austin Housing Inventory Down 1%
In October 2014, we saw 2.3 months of inventory on the market, compared to 2.3 months of inventory in October 2013, marking a 1% decrease in year over year numbers. Inventory has decreased steadily since August, 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 13%
In October 2014, it took 42 days to sell a home in Austin, on average, compared to 37 days in October 2013, marking a 13% (5 day) increase in year over year numbers. This upward trend starting back in May is expected as we head into the seasonal slow down through December. If this year is like past years, we should expect to see see a continual increase in inventory through December, with a decrease starting in January.
Austin Homes Under Contract Up 8%
In October 2014, 943 homes went pending (under contract) in Austin compared to 871 in October 2013, marking an 8% increase in year over year numbers. As expected, we saw a bump in sales from September numbers, which we expect before the slower November and December months. It seems some buyers have learned the secret of buying during the slower period of the year. Come Spring, they’ll be happy they bought now.
Number of Homes on the Market Up 10%
In October 2014, we had 3,477 homes for sale in Austin, compared to 3,159 in October 2013, showing a 10% (318 home) increase in year over year numbers.
Number of Homes Listed for Sale Up 12%
In October 2014, we saw 1,129 homes introduced to the market compared to 1,007 in October 2013, marking a 12% increase. It seems more seller have confidence in the strength of the market and are choosing not to wait until Spring to sell.
Supply Up 10% and Demand is Up 4%
This month we saw a 10% increase in supply (number of properties for sale) and a 4% increase in demand (number of sold properties). This stat is yet another indicator it’s time to buy a home in Austin. Though we still see low inventory, we see more choices for buyers than they had in Spring. Demand is up since last year, but, supply is up more, which is another indicator now’s the time for buyers. Buyers who take advantage of the seasonality in the market can get a better deal on a home than their friends will next Spring.
Median for Sale Up 7% vs Median Sold Price Up 15%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 7% increase in the median for sale price and a 15% 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
October 2014 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for October 2014 Austin home sales below. The most expensive home that sold in October 2014 sold for $4,231,561 and the least expensive home sold for $44,500. Homes ranged in size from 624 sqft – 8,915 sqft with an average size of 2,234 sqft. The average price per square foot for a home that sold in Austin in October 2014 was $177.10 with the lowest being $17.12/sqft and the highest being $782.46/sqft. It took, on average, 40 days to sell a home in Austin and sellers received, on average, 96.68% 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||Oct 2014|
|Property Type||Single Family Homes||Number Sold||912|
|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. With new listings up 12% and time to sell up 13%, buyers are getting more choices and more time to make their decisions. 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 price. With 2.3 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.