Eleven Oaks Realty is proud to present their February 2015 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Time to Sell Home in Austin Up 30%
The biggest story in this month’s Austin Real Estate Price Report comes by way of time to sell a home. In February 2015, it took 49 days to sell a home in Austin, on average, compared to 38 days in February 2014, marking a 30% (11 day) increase in year over year numbers. Though this could be a sign of the market slowing down, I think it has more to do with inventory being so lean that buyers snatched up homes that have been on the market a while. When buyers chose homes that have been sitting on the market, it brings the average up. Next month’s figures will help us determine whether my theory is correct or if the market really is slowing down.
What does this mean to buyers? Before you pump the brakes on your home search thinking the market is slowing down, remember these are last month’s numbers. The activity we have seen in the market in the last few weeks has been much stronger. I think next month’s numbers will confirm what we’ve been seeing and the market is actually picking up. That being said, the earlier in Spring you can find a house, the less likely chance you’ll face multiple offers and overbids. March is usually the sweet spot where you’ll see more inventory but not as many buyers as you’ll see in April and May. Get started now and avoid the big rush.
What does this mean to sellers? Get your homes ready to sell now. The busy Spring home buying season is just around the corner and if this year is anything like last year (and it’s leaning that way), sellers will get more for their homes than at any other time of year. Preparing your home to sell for top dollar usually takes a month or so, so now is the perfect time to start.
Austin Median Home Price Up 4%
For the sixth month in a row, the median price of a home in Austin outpaced last year. The median home price of an Austin home in February 2014 was $297,500 compared to $310,000 in February 2015, marking a 4% increase in year over year numbers. Even though we have more supply and less demand this month, buyers are still 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.
Number of Homes Taken Off the Market Up 32%
For the seventh straight month, we saw a significant increase in the number of homes taken off the market in Austin. In February 2014, there were 114 single family homes taken off the market compared to 146 in February 2015, marking a 28% (32 home) increase city wide. If we did some further analysis, we would likely find many of these homes were overpriced and instead of lowering their price, sellers decided to take them off the market and try again when the market picks up in Spring. If you don’t have to sell and you’re just testing the market, Spring is the best time to do so. 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 10%
This month, the number of homes sold in Austin were just slightly above January 2015 numbers, which is to be expected as we head into Spring and demand picks up. But, it seems this year the market is picking up steam at a slower pace than last year. In February 2015, Austin saw a 10% decrease in the number of homes sold from February 2014 to February 2015. In February 2015, we saw 653 homes sell in Austin compared to 726 in February 2014 marking a 10% (73 home) decrease in year over year numbers.
Austin Housing Inventory Up 2%
In February 2015, we saw 1.9 months of inventory on the market, compared to 1.8 months of inventory in February 2014, marking an 2% increase in year over year numbers. Inventory figures, though up from last year, are not up enough to make the finding statistically significant. We are seeing inventory numbers inch down and is a trend we would expect to continue through Spring.
Austin Homes Under Contract Up 11%
In February 2015, 898 homes went pending (under contract) in Austin compared to 809 in February 2014, marking an 11% increase in year over year numbers. This is an indicator next month’s sold figures should be stronger than this month’s.
Number of Homes on the Market Up 13%
In February 2015, we had 2,729 homes for sale in Austin, compared to 2,412 in February 2014, showing a 13% (317 home) increase in year over year numbers. It seems more sellers are confident they can get what they want from their homes and are putting them on the market a bit earlier than they were last year.
Number of Homes Listed for Sale Up 5%
In February 2015, we saw 1,030 homes introduced to the market compared to 985 in February 2014, marking a 5% (45 home) increase.
Supply Up 13% and Demand is Down 10%
This month we saw a 13% increase in supply (number of properties for sale) and a 10% decrease in demand (number of sold properties). The increase in supply and decrease in demand is a trend we’ve seen for a few months now. If you’re a buyer, take advantage of more choices. As we head deeper into Spring and demand picks up, supply will also decrease, which will probably create another frenzy to buy. If you can find something now, you’ll avoid the inevitable price increases that come from multiple offers and overbids.
Median for Sale Up 10% vs Median Sold Price Up 4%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 10% increase in the median for sale price and a 4% increase in the median sold price of a single family home in year over year numbers. Though sellers are pricing their homes higher than last year, buyers are still willing to pay more, which should be great news for sellers.
Source: Clarus Market Metrics, ACTRIS Sold Data
February 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 February 2015 Austin home sales below. The most expensive home that sold in February 2015 sold for $5,800,000 and the least expensive home sold for $40,000. Homes ranged in size from 580 sqft – 7,904 sqft with an average size of 2,151 sqft. The average price per square foot for a home that sold in Austin in February 2015 was $186.29 with the lowest being $15.38/sqft and the highest being $1,278.45/sqft. It took, on average, 43 days to sell a home in Austin and sellers received, on average, 98.24% 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||Feb 2015|
|Property Type||Single Family Homes||Number Sold||666|
|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 the same as last month – it’s time to buy, but also time to get ready to sell. 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 supply up 13% and demand down 10%, buyers will have more choices and be able to negotiate better deals. 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 stronger offers than they were last year. With 1.9 months of inventory, we are still in a strong seller’s market, just not as strong as the Spring market, but that’s coming before you know it. If you’re looking to trade up, take advantage of the market forces that make it easier for buyers. What you might not get on the selling end will usually be recovered on the buying 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.