Eleven Oaks Realty is proud to present their February 2016 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 12%
The biggest story in this month’s Austin Real Estate Price Report comes by way of median home prices. For the 18th month in a row, the median price of a home in Austin outpaced the previous year. We continue to hear stories of how expensive Austin real estate is, but we have yet to see buyers leave the market. And, with the influx of people from more expensive areas of the US, I don’t see this slowing down any time soon. The median price of an Austin home in February 2015 was $309,900 compared to $348,500 in February 2016, marking a 12% increase in year over year numbers.
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? With 18 straight months of price increases, it doesn’t look like we’re going to see a slowdown any time soon. If you want to buy a home in Austin, now is the perfect storm of increased inventory and decreased competition compared to what you’ll face later in Spring. Get your home search started now and be patient. You might not get the first house you make an offer on, but if you are persistent and diligent with your search, you will be successful.
What does this mean to sellers? If you’re thinking of selling, you should be pleased to see competitive buyers continue to strengthen the Austin real estate market. But, even though prices are going up, that doesn’t mean you just pop a sign in your yard today and cash a big check tomorrow. The most successful sellers spend some time preparing their homes to sell. Work with a Realtor to help you make smart improvements and maximize the return on the dollars you spend preparing your home to meet its next owner.
Time to Sell Home in Austin Down 6%
In February 2016, it took 43 days to sell a home in Austin, on average, compared to 46 days in February 2015, marking an 6% (3 day) decrease in year over year numbers. This year buyers have started their home searches a little earlier than previous years. They are making decisions faster and thus time to sell is going down.
Number of Homes Taken Off the Market Up 55%
In February 2016, there were 175 homes taken off the market compared to 113 in February 2015. This marked a 55% (62 home) increase in year over year numbers. The increase in homes taken off the market is a trend we’ve seen in Austin for some time. Typically we see sellers sticking it out through Spring, so this significant increase in homes taken off the market in February is a bit surprising. It will be interesting to see what next months numbers show.
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 3%
In February 2016, Austin saw a 3% decrease in the number of homes sold from February 2015 to February 2016. In February 2016, we saw 672 homes sell in Austin compared to 693 in February 2015 marking a 3% (21 home) decrease in year over year numbers. Even though numbers are slightly down from last year, we did see an increase from last month, which is what we would expect as we head into Spring.
Austin Housing Inventory Down 12%
In February 2016, we saw 1.9 months of inventory on the market, compared to 2.2 months of inventory in February 2015, marking a 12% decrease in year over year numbers. Again this month, inventory is getting pretty lean. Hopefully we’ll see more sellers put inventory on the market to offset the demand that is wiping out our inventory.
Austin Homes Under Contract Up 10%
In February 2016, 934 homes went pending (under contract) in Austin compared to 846 in February 2015, marking a 10% (88 home) increase in year over year numbers. Yet another indicator the Spring market has started early this year.
3% Increase in Number of Homes on the Market
In February 2016, we had 2,898 homes for sale in Austin, compared to 2,810 in February 2015, showing a 3% (88 home) increase in year over year numbers.
Number of Homes Listed for Sale Up 7%
In February 2016, we saw 1,119 homes introduced to the market compared to 1,042 in February 2015, marking a 7% (77 home) increase. Sellers are seeing the lean inventory and increase in sales and are listing their homes sooner than they did last year.
Supply Up 3% and Demand is Down 3%
This month we saw a 3% increase in supply (number of properties for sale) and a 3% decrease in demand (number of sold properties). It seems sellers are quicker to the punch than buyers. If this year is like previous years, I would expect these numbers to flip flop as we head into Spring.
Median for Sale Up 6% vs Median Sold Price Up 12%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 6% increase in the median for sale price and a 12% increase in the median sold price of a single family home in year over year numbers. Again this month buyers are being pretty aggressive with offers, likely due to their limited choices.
Source: Clarus Market Metrics, ACTRIS Sold Data
February 2016 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 2016 Austin home sales below. The most expensive home that sold in February 2016 sold for $2,900,000 and the least expensive home sold for $25,000. Homes ranged in size from 480 sqft – 7,401 sqft with an average size of 2,148 sqft. The average price per square foot for a home that sold in Austin in February 2016 was $203.72 with the lowest being $9.62/sqft and the highest being $843.75/sqft. It took, on average, 51 days to sell a home in Austin and sellers received, on average, 96.73% of their original list prices.
| Beds | Baths | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Min | 1 | 2 | 480 | $32,500 | $12.50 | $25,000 | $9.62 | 28.08% | 28.08% | 0 |
| Max | 6 | 7 | 7,401 | $3,190,000 | $822.92 | $2,900,000 | $843.75 | 126.67% | 145.09% | 632 |
| Avg | 3 | 3 | 2,148 | $428,537 | $206.89 | $419,360 | $203.72 | 98.47% | 96.73% | 51 |
| Median | 3 | 3 | 2,008 | $350,000 | $175.60 | $349,900 | $173.79 | 99.00% | 98.18% | 18 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | February 2016 |
| Property Type | Single Family Homes | Number Sold | 687 |
| 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 3% and supply is up 3%. I would only expect these market forces that slightly favor buyers for another month or so. After that, demand should increase significantly and we’ll see multiple offers and overbids again. Buyers who diligently pursue their home search, scout homes as soon as they are listed and are decisive with making offers will be in homes before their friend start their search.
If you haven’t started your home search, now is the ideal time to do so. Waiting until later in 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 start of the busy season is a great way to get the best of both worlds – choices and less competition. 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 isn’t the worst time to do that either. And, if you plan on buying too, now is the ideal time to do both. Buyers are starting to be more competitive with their offers, which might help you get the extra money you need to move on to your next house. Time to sell is down and inventory is at extreme seller’s market levels. 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 later 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 1.9 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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