Eleven Oaks Realty is proud to present their September 2014 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 9%
The biggest story in this month’s Austin Real Estate Price Report comes by way of median home price. Though this month saw decreased market activity, we continued to see an increase in the median sold price of a home in Austin. In September 2013, the median sales price for homes in Austin was $285,916 compared to $312,000 in September 2014, marking a $26,084, or 9% increase. This increase is an indication that buyers are willing to pay more for a home than they were at this time last year.
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 entering the best time to buy a home in Austin. With decreased activity, homes taking longer to sell and demand down, you won’t see the frenzy you will see starting mid-January. Though median price is up compared to last year, it is down compared to May and June of this year. Buyers who buy during the “off-season” will thank themselves as they will have paid less than they would have if they had waited until home buying season. There is still time to buy before it gets busy again and if I was a home buyer, this would be the time I would look to buy.
What does this mean to sellers? Buyers are willing to pay more for homes this year than they were last year. If you’re thinking of selling and can’t wait on the Spring housing market, you’ll want to get your home on the market before we see a slow down over the Holidays. With less than 2.5 months of inventory, homes that are priced right will find a buyer quickly in this market. Though buyers aren’t jumping at everything like they were a few months ago, they are paying a premium for homes they see as a value. Make your home a value to a buyer and you’ll have no trouble selling.
Number of Homes Taken Off the Market Up 44%
For the second straight month, we saw a significant increase in the number of homes taken off the market in Austin. In September 2013, there were 245 single family homes taken off the market compared to 354 in September 2014, marking a 44% (109 home) increase city wide. It is clear now 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 Down 2%
As expected from our August 2014 Real Estate Price Report, we saw a decrease in the number of homes sold in Austin in September 2014. September 2014 closings likely went pending (under contract) in August and though we did see a slight increase in pending sales in August, it wasn’t sizable. It seems buyers were more affected by the usual August/September slow down than they were last year and put their house hunts on hold while they got the kids ready for school and took their last Summer vacations. In September 2014, Austin saw a 2% decrease in the number of homes sold from September 2013 to September 2014. In September 2014, we saw 902 homes sell in Austin compared to 924 in September 2013.
Austin Housing Inventory Down 9%
In September 2014, we saw 2.3 months of inventory on the market, compared to 2.6 months of inventory in September 2013, marking a 9% decrease in year over year numbers. September’s figures are hovering between June and July 2014 inventory numbers. which is to be expected in the seasonal trend. We should see another decrease in October followed by an increase in November and December as buyers take breaks for the Holidays. Nonetheless, 2.3 months of inventory is an extreme seller’s market. Though we’ve seen a pretty strong seller’s market for the past few years, there is no guarantee how long this will last. If you are thinking of selling or trading up, take advantage of the market and get into your new home before Christmas.
Time to Sell Home in Austin Up 12%
In September 2014, it took 39 days to sell a home in Austin, on average, compared to 35 days in September 2013, marking a 12% (4 day) increase in year over year numbers. This upward trend starting back in May is expected as we head into the seasonal slow down from August – December.
Austin Homes Under Contract Up 13%
In September 2014, 945 homes went pending (under contract) in Austin compared to 835 in September 2013, marking a 13% increase in year over year numbers. We usually see a bump of activity in September/October before we head into the November/December Holiday slowdown and it seems this year’s uptick was a bit stronger than last year’s.
Number of Homes on the Market Up 9%
In September 2014, we had 3,506 homes for sale in Austin, compared to 3,230 in September 2013, showing a 9% increase in year over year numbers.
Number of Homes Listed for Sale Up 7%
In September 2014, we saw 1,043 homes introduced to the market compared to 976 in September 2013, marking a 7% increase. It seems more sellers are trying to get their homes sold before the Holiday slow down than at this time last year.
Supply Up 9% and Demand is Down 2%
This month we saw a 9% increase in supply (number of properties for sale) and a 2% decrease 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 the previous months of this year. 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 8% 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 an 8% increase in the median for sale price and a 9% increase in the median sold price of a single family home in year over year numbers. Sellers think their homes are worth more than they did last year and buyers agree. This slight discrepancy also shows buyers are willing to pay for for homes they see as a value.
Source: Clarus Market Metrics, ACTRIS Sold Data
September 2014 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for September 2014 Austin home sales below. The most expensive home that sold in September 2014 sold for $4,800,000 and the least expensive home sold for $26,660. Homes ranged in size from 360 sqft – 10,844 sqft with an average size of 2,002 sqft. The average price per square foot for a home that sold in Austin in September 2014 was $180.32 with the lowest being $50.37/sqft and the highest being $802.45/sqft. It took, on average, 32 days to sell a home in Austin and sellers received, on average, 97.58% 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||Sept 2014|
|Property Type||Single Family Homes||Number Sold||916|
|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. We saw supply again increase this month and demand was down slightly, which tells me buyers will have less competition than they did in previous months. Combine that with the increased time to sell and buyers are also getting more time to make their decision, which helps give them the confidence they are making the right decision. If you’re looking to buy, we can help. 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 sellers market, just not as strong as the Spring 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. 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.