Eleven Oaks Realty is proud to present their October 2015 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 8%
The biggest story in this month’s Austin Real Estate Price Report comes by way of median home prices. For the 14th month in a row, the median price of a home in Austin outpaced the previous year. The median price of an Austin home in October 2014 was $309,375 compared to $335,000 in October 2015, marking an 8% increase in year over year numbers. We keep hearing that prices are going to start dropping, but that’s yet to be the case. Buyers continue to make strong offers on homes.
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? Though prices are up from last year, we are seeing a less frenzied market than we saw during Spring. Last month we saw an even steeper decrease in demand than we saw the same time last year. It seems the Holidays are distracting potential buyers. With less demand and the same amount of supply, buyers should be able to get better deals for homes, especially if they make home buying a priority and scout homes as quickly as they can. The less buyers you have to compete with, the more chance you’ll have at negotiating a great deal.
What does this mean to sellers? If you need to sell this Winter, don’t be too discouraged. Though there are fewer buyers in the market, the buyers that are looking this Winter are serious. And, as we see with this month’s median home sales figures, they are willing to pay more than they were last year. Position your home as a value and you’ll have no trouble finding a buyer.
Time to Sell Home in Austin Up 4%
In October 2015, it took 43 days to sell a home in Austin, on average, compared to 41 days in October 2014, marking a 4% (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 8% more than they would have gotten last year.
Number of Homes Taken Off the Market Up 2%
In October 2015, there were 318 homes taken off the market compared to 311 in October 2014. This marked an 2% (7 home) increase in year over year numbers. As we head into the Holidays, we’ll expect to see more homes taken off the market. Sellers who have the time to wait until next year will take a break from the home selling process until the New Year. This way they can enjoy the holidays without having to interrupt their plans.
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 14%
In October 2015, Austin saw a 14% decrease in the number of homes sold from October 2014 to October 2015. In October 2015, we saw 808 homes sell in Austin compared to 942 in October 2014 marking a 14% (134 home) decrease in year over year numbers. This year, we saw a quicker drop off in home sales. I would expect number of sales to decrease over the next three months.
Austin Housing Inventory Down 7%
In October 2015, we saw 2.5 months of inventory on the market, compared to 2.7 months of inventory in October 2014, marking a 7% decrease in year over year numbers. Though we saw a slight dip from September to October, I would expect inventory to increase in November and December as demand and supply decrease.
Austin Homes Under Contract Up 5%
In October 2015, 925 homes went pending (under contract) in Austin compared to 879 in October 2014, marking a 5% increase in year over year numbers. Though we had fewer closed sales in October, we had more buyers get homes under contract.
No Change in Number of Homes on the Market
In October 2015, we had 3,556 homes for sale in Austin, compared to 3,559 in October 2014, showing essentially no change (3 homes) in year over year numbers.
Number of Homes Listed for Sale Down 3%
In October 2015, we saw 1,101 homes introduced to the market compared to 1,135 in October 2014, marking a 3% (34 home) decrease. We’re down almost 600 homes since the peak in July 2015, which is to be expected this time of year.
Supply Saw No Change and Demand is Down 14%
This month we saw no change in supply (number of properties for sale) and a 14% decrease in demand (number of sold properties). It seems this Winter sellers might have to compete to get the attention of the buyers in the market.
Median for Sale Up 13% vs Median Sold Price Up 8%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 13% increase in the median for sale price and an 8% increase in the median sold price of a single family home in year over year numbers. Sellers are confident they can get more this year and are pricing higher. Though buyers are willing to pay more than last year, they aren’t willing to pay as much as sellers are asking. If you like a house that’s priced too high, try to negotiate with the seller. You just might be successful.
Source: Clarus Market Metrics, ACTRIS Sold Data
October 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 October 2015 Austin home sales below. The most expensive home that sold in October 2015 sold for $6,500,000 and the least expensive home sold for $95,000. Homes ranged in size from 431 sqft – 10,890 sqft with an average size of 2,268 sqft. The average price per square foot for a home that sold in Austin in October 2015 was $192.00 with the lowest being $44.35/sqft and the highest being $714.53/sqft. It took, on average, 44 days to sell a home in Austin and sellers received, on average, 95.92% of their original list prices.
| Beds | Baths | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Min | 1 | 1 | 431 | $79,000 | $38.57 | $95,000 | $44.35 | 73.86% | 54.55% | 0 |
| Max | 8 | 10 | 10,890 | $7,250,000 | $813.93 | $6,500,000 | $714.53 | 125.70% | 146.27% | 481 |
| Avg | 3 | 3 | 2,268 | $463,978 | $196.36 | $450,733 | $192.00 | 98.24% | 95.92% | 44 |
| Median | 3 | 3 | 2,045 | $339,995 | $165.75 | $335,000 | $164.34 | 98.67% | 97.30% | 23 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | October 2015 |
| Property Type | Single Family Homes | Number Sold | 814 |
| 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 14%, with no change in supply, so buyers will be able to negotiate better deals. Sellers who have their homes on the market during the Holidays are generally motivated to sell. Though it will seem like you have more time to make decisions about houses, the most successful home buyers will make home buying a priority. Set alerts to be notified as soon as a home 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. 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.
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