Eleven Oaks Realty is proud to present their October 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 October 2018 was $385,000 compared to $420,000 in October 2019, up 9% ($35,000) 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? We’ve been doing this report for several years and can count the months where we didn’t see an increase in median price in year over year numbers. Some months have seen a bigger increase than others, but we’ve seen steady increases for years. And, with the influx of buyers from more expensive housing markets, we don’t see those prices going down any time soon. New Austin residents are still amazed at what they can buy here compared to where they came from. They’re used to spending a lot more of their monthly income on housing and often they can buy here for less than their rent was where they came from. Barring any sort of economic crash, the Austin housing market should continue to pick up steam. We aren’t seeing the activity we saw four years ago with multiple offers, overbids and buyers in a frenzy, but we are seeing serious buyers making competitive offers fairly quickly after homes are listed. Still a very strong market, however.
What does this mean to sellers? With supply down and demand up, we are still seeing buyers in the market who are ready to make offers. And, sellers who aren’t monitoring the market aren’t seeing the differences in this year’s market versus years previous. If you haven’t sold your home yet and are hoping to, now is not the worst time to do so. Buyers are still willing to make strong offers and they are motivated. Prepare your home to sell, make it a value compared to what else is out there and you’ll have no trouble finding a buyer by year’s end.
19% Decrease in Time to Sell Home in Austin
In October 2019, it took 40 days to sell a home in Austin, on average, compared to 50 days in October 2018, marking a 19% (10 home) decrease in year over year numbers. As we come to the end of 2019, we are seeing an interesting trend. We usually see activity die down, but this year, we are seeing an uptick in activity as we close out the year. It will be interesting to see what happens during the holidays.
Number of Homes Taken Off the Market Saw a 9% Decrease
In October 2019, there were 268 homes taken off the market compared to 295 in October 2018. This marked a 9% decrease in year over year numbers. As demand goes up, more sellers are able to get their homes sold, which means fewer have to take their homes off the market. If this trend continues, we should see inventory levels decrease over the next two months.
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 Up 11%
Austin saw an 11% increase in the number of homes sold from October 2018 to October 2019. In October 2019, we saw 1,011 homes sell in Austin compared to 912 in October 2018 marking an 11% (99 home) increase in year over year numbers. Yet another indicator that the busy season has not quite hit us yet. This month’s numbers were about at the same level as we saw at the start of spring.
30% Decrease in Austin Housing Inventory
In October 2019, we saw 2.1 months of inventory on the market, compared to 3.0 months of inventory in October 2018, showing a 30% decrease in year over year numbers. Though we would typically expect to be inching towards a balanced or buyers market, we are seeing strong seller’s market numbers. If demand continues to stay strong, we would expect extreme seller’s market levels next month.
Austin Homes Under Contract Up 8%
In October 2019, 932 homes went pending (under contract) in Austin compared to 866 in October 2018, marking an 8% (66 home) increase in year over year numbers. Again, our pending sales are inching back up to where they were in early spring, which shows buyers have not given up for the year.
16% Decrease in Number of Homes on the Market
In October 2019, we had 3,183 homes for sale in Austin, compared to 3,781 in October 2018, showing a 16% (598 home) decrease in year over year numbers. With a significant decrease in supply, buyers should be feeling the pinch of fewer choices, which explains why prices are on the rise. If you’re looking to sell, this winter might not be a bad time to get it done.
2% Decrease in Number of Homes Listed for Sale
In October 2019, we saw 1,032 homes introduced to the market compared to 1,049 in October 2018, marking a 2% (17 home) decrease in year over year numbers. Savvy sellers are seeing the opportunity in this market, while other, misinformed sellers, are waiting until the spring home buying season.
Supply Down 16% and Demand Up 11%
This month we saw a 16% decrease in supply (number of properties for sale) and an 11% increase in demand (number of sold properties).
Median for Sale Up 7% 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 7% 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
October 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 October 2019 Austin home sales below. The most expensive home that sold in October 2019 sold for $7,125,000 and the least expensive home sold for $85,000. Homes ranged in size from 450 sqft – 9,593 sqft with an average size of 2,180 sqft. The average price per square foot for a home that sold in Austin in October 2019 was $249.27 with the lowest being $82.39/sqft and the highest being $3,996.07/sqft. It took, on average, 40 days to sell a home in Austin and sellers received, on average, 96.5% of their original list prices.
|Beds||Baths||SqFt||List Price||LP/SqFt||Sold Price||SP/SqFt||SP/LP||SP/OLP||ADOM|
|Property Type||Single Family Homes||Number Sold||1,016|
|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 sell. Demand is up and supply is down – both pretty significantly. Plus, new listings are also down, so we are in a strong seller’s market, heading towards an extreme seller’s market. 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 before we get to the holidays.
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 interest rates are at near record lows. Though you have more competition for fewer listings and might have to pay more for the house, your payment will likely be less. 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.