Eleven Oaks Realty is proud to present their September 2019 Austin Real Estate Price Report measuring activity in the Austin 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 September 2018 was $379,990 compared to $412,990 in September 2019, up 9% ($33,000) in year over year numbers. This marks another record setting month of price increases in the city of Austin. At nearly 10%, the increase is significant in just one year’s time.
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 areas, 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? We are seeing a delayed spring/summer busy season this year. If you haven’t sold your home yet and are hoping to, now is not the worst time to do so. With supply down and demand up, we are seeing buyers be more aggressive to get the homes they want. Position your home to sell, price it well and you’ll have no trouble finding a buyer before the end of the year.
10% Decrease in Time to Sell Home in Austin
In September 2019, it took 49 days to sell a home in Austin, on average, compared to 44 days in September 2018, marking a 10% (5 home) decrease in year over year numbers. This year has been an interesting year. Our summer pop came at the end of the summer, and it seems to still be going on. Buyers are making decisions quickly and snapping up inventory quicker this year than last. Could be buyers are more decisive, but it also could be they are frustrated from not finding anything over the summer. Either way, buyers are motivated and ready to move on something that works for them.
Number of Homes Taken Off the Market Saw a 17% Decrease
In September 2019, there were 277 homes taken off the market compared to 230 in September 2018. This marked a 17% decrease in year over year numbers. With a big bump in the number of homes sold and decrease in inventory, it’s no wonder more houses are selling. Even homes that are a bit overpriced are selling because there aren’t as many choices. If you’re looking to sell, now is the time to consider it.
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 9%
Austin saw a 9% increase in the number of homes sold from September 2018 to September 2019. In September 2019, we saw 957 homes sell in Austin compared to 879 in September 2018 marking a 9% (78 home) increase in year over year numbers. Another indicator that summer demand is still here. We’re seeing more homes sell later in the year than we did over the summer. Looks like buyers were just patiently waiting for something that better suited their needs and those homes didn’t show up until the end of the busy season.
36% Decrease in Austin Housing Inventory
In September 2019, we saw 2.0 months of inventory on the market, compared to 3.1 months of inventory in September 2018, showing a 36% decrease in year over year numbers. We are back down to where we would typically see inventory at the beginning of the summer. It will be interesting to see how long this decrease lasts and if we will slow down at all for winter.
Austin Homes Under Contract Up 20%
In September 2019, 1,050 homes went pending (under contract) in Austin compared to 878 in September 2018, marking a 20% (172 home) increase in year over year numbers. We didn’t see too much of a drop off from August to September and quite a bump from last year’s figures. Another data point that suggests the busy season is still upon us. It will be interesting to see if this momentum continues through next month.
13% Decrease in Number of Homes on the Market
In September 2019, we had 3,375 homes for sale in Austin, compared to 3,885 in September 2018, showing a 13% (510 home) decrease in year over year numbers. If we continue to see a decrease in inventory, we’ll be in an even more extreme seller’s market.
2% Increase in Number of Homes Listed for Sale
In September 2019, we saw 1,043 homes introduced to the market compared to 1,018 in September 2018, marking a 2% (25 home) increase in year over year numbers. While not a significant increase, it does show that a few sellers are noticing the lack of inventory in the market and taking advantage. If we continue to see demand climb and supply stay the same, we should be going into some pretty lean inventory months.
Supply Down 13% and Demand Up 9%
This month we saw a 13% decrease in supply (number of properties for sale) and a 9% decrease in demand (number of sold properties).
Median for Sale Up 5% 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 5% 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, proving buyers are willing to make strong offers on homes that fit their needs.
Source: Clarus Market Metrics, ACTRIS Sold Data
September 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 September 2019 Austin home sales below. The most expensive home that sold in September 2019 sold for $4,607,500 and the least expensive home sold for $157,000. Homes ranged in size from 650 sqft – 8,981 sqft with an average size of 2,202 sqft. The average price per square foot for a home that sold in Austin in Septmeber 2019 was $238.32 with the lowest being $86.93/sqft and the highest being $861.54/sqft. It took, on average, 35 days to sell a home in Austin and sellers received, on average, 96.97% 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||968|
|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. If that continues without any new inventory, we’ll be in an even more extreme seller’s market by next month. With just about 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.