Eleven Oaks Realty is proud to present their March 2014 Austin Foreclosure Market Report measuring activity in the single family home foreclosure market.
Austin Bank Owned Properties Sold Down 61%
March 2014 saw a 61% decrease in the number of bank owned homes sold in year over year figures. In March 2013, there were 38 bank owned homes that sold (closed escrow) compared to 15 in March 2014. Bank owned homes (foreclosures) accounted for just 1.8% of the total home sales in Austin, compared to 4.1% of the total sales in March 2013. The overall market saw an 11% decrease in the number of homes sold compared to last year’s numbers.
Austin Bank Owned Homes Under Contract Down 68%
Also trending downward was the number of bank owned homes, foreclosures, that accepted a contract. In March 2014, there were 14 bank owned homes that accepted a contract (pending) compared to 44 homes in March 2013 marking a 68% (30 home) decrease in year over year numbers. Bank owned homes accounted for only 1.4% of the homes that went under contract in March 2014 compared to 3.7% of homes that went under contract in March 2013. The full market saw a 7% decrease in the number of homes that went pending compared to last year at this time, showing just how small a percentage the distressed market takes in Austin.
Austin Bank Owned Listed for Sale Down 72%
In March 2014, we saw a 72% (28 home) decrease in the number of bank owned homes, foreclosures, listed for sale. In March 2013, there were 39 foreclosures (homes owned by the bank) listed for sale compared to just 11 in March 2014. Because our market in Austin is on such an upward trend, it seems sellers who are under water are able to sell their homes before they go into foreclosure, which is keeping our bank owned inventory low. As far as proposed “shadow inventory,” I believe if banks had homes to sell in Austin, they would. Austin is the perfect market for banks to regain some of their losses. This is a very strong market and banks would be eager to unload any inventory they might have.
Austin Bank Owned Homes Currently for Sale Down 71%
The number of bank owned homes in Austin currently on the market went from 99 in March 2013, to 29 in March 2014 marking a 71% (70 home) decrease. The full market was down 10%, which is only a small fraction of the bank owned market. Number of bank owned homes for sale made up just 1.1% of the market in March 2014. It seems buyers are recognizing deals with buying bank owned homes and moving them off the market as quickly as they are listed.
Austin Bank Owned Homes that Didn’t Sell Down 75%
In March 2014, banks took 1 home off the market that didn’t sell compared to 4 in March 2013. As with the overall market, buyers are snatching up bank owned home inventory where even the ones in poor condition are selling (for the right price). Bank owned homes taken off the market in March 2014 were 0.7% of the total homes that were taken off the market. It seems there really is a demand for bank owned homes and banks price their homes to sell quickly.
What Do Austin Foreclosure Numbers Mean for Buyers?
As we’ve been saying for months, if you are pursuing foreclosures in Austin as part of your home buying strategy, make it just that – part of your strategy. With so few bank owned homes on the market in Austin, you should open up your search to both homes owned by the bank and homes owned by traditional sellers. Remember, the traditional seller has to compete with bank owned properties if they want to get their homes sold.
Looking to Buy a Foreclosure in Austin?
With a combined 55+ years of experience, our team knows how to get banks to accept your offers, even in a competitive market like we’re seeing here in Austin. For more, check out Guide to Buying Foreclosures in Austin and our Buying a Home in Austin Guide. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation conversation. Together we can come up with the best strategy for you to buy a bank owned home in 2014.