Eleven Oaks Realty is proud to present their January 2016 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 1%
The biggest story in this month’s Austin Real Estate Price Report comes by way of median home prices. For the 17th month in a row, the median price of a home in Austin outpaced the previous year. This month we saw only a slight increase, but an increase nonetheless. The median price of an Austin home in January 2015 was $316,000 compared to $318,000 in January 2016, marking a 1% 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 17 straight months of pricing increases, it doesn’t look like we’re going to see a slowdown anytime soon. If you want to buy a home in Austin and are waiting until prices slow down, you might be waiting a while. Even though prices are going up, that doesn’t mean you can’t get a good deal now if you are patient and time the market right. The best deals are found during Winter and right after school starts. Start your search immediately and you’ll catch the tail end of the Winter “slow” season.
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 Up 14%
In January 2016, it took 54 days to sell a home in Austin, on average, compared to 47 days in January 2015, marking an 14% (6 day) increase in year over year numbers. Though prices are going up, it is taking sellers a bit longer to sell this year than last. This year buyers are a little more careful in making their selections. This increased time to sell gives proactive buyers better chances to get the house they want simply by being decisive.
Number of Homes Taken Off the Market Up 28%
In January 2016, there were 208 homes taken off the market compared to 162 in January 2015. This marked a 28% (46 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. In appreciating markets, we often see sellers testing the market. When they can’t get their price, they take their home off the market. Given the buyer demand we’re seeing in this market, homes that are priced right will have no trouble finding a buyer.
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 8%
In January 2016, Austin saw an 8% decrease in the number of homes sold from January 2015 to January 2016. In January 2016, we saw 493 homes sell in Austin compared to 533 in January 2015 marking an 8% (40 home) decrease in year over year numbers. We did see a significant drop off from last month’s numbers, which is what we would expect for typical January trends.
Austin Housing Inventory Down 17%
In January 2016, we saw 1.9 months of inventory on the market, compared to 2.3 months of inventory in January 2015, marking a 17% decrease in year over year numbers. We’re starting 2016 with a pretty lean inventory pool. If buyer demand continues to pick up, we would expect a pretty competitive Spring market.
Austin Homes Under Contract Up 16%
In January 2016, 883 homes went pending (under contract) in Austin compared to 758 in January 2015, marking a 16% (125 home) increase in year over year numbers. It seems the Spring market is kicking off a bit earlier this year than last year. If you’re looking to get your home on the market, you may not have to wait until April or May to find a qualified buyer.
4% Increase in Number of Homes on the Market
In January 2016, we had 2,797 homes for sale in Austin, compared to 2,688 in January 2015, showing a 4% (109 home) increase in year over year numbers.
Number of Homes Listed for Sale Up 8%
In January 2016, we saw 992 homes introduced to the market compared to 922 in January 2015, marking an 8% (70 home) increase. Again this month sellers weren’t afraid to put their homes on the market in the traditionally slower months. And, as we saw with the median price increase, they were rewarded for it.
Supply Up 4% and Demand is Down 8%
This month we saw a 4% increase in supply (number of properties for sale) and a 8% decrease in demand (number of sold properties). This increase in supply and decrease in demand gives buyers a short time to capitalize on market forces that slightly favor them.
Median for Sale Up 5% vs Median Sold Price Up 1%
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 1% increase in the median sold price of a single family home in year over year numbers. It seems buyers were more successful negotiating better deals in January than they have been in previous months.
Source: Clarus Market Metrics, ACTRIS Sold Data
January 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 January 2016 Austin home sales below. The most expensive home that sold in January 2016 sold for $4,503,000 and the least expensive home sold for $95,000. Homes ranged in size from 672 sqft – 9,685 sqft with an average size of 2,168 sqft. The average price per square foot for a home that sold in Austin in January 2016 was $193.49 with the lowest being $53.61/sqft and the highest being $583.94/sqft. It took, on average, 50 days to sell a home in Austin and sellers received, on average, 96.04% 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||January 2016|
|Property Type||Single Family Homes||Number Sold||508|
|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 8% and supply is up 4%. Per normal seasonal trends, we will only have about a month or two left with market forces that favor buyers. In January buyers were able to negotiate better deals with sellers. Now as we see more inventory come online, it will seem like buyers have more time and choices. But, don’t get complacent. Set alerts, scout homes as soon as they are listed and pull the trigger when you see one that meets your needs.
If you haven’t started your home search, now is the ideal time to do so. Waiting until 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 seasonal slow down can help make the home buying process less stressful and more favorable financially. 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. What you might lose on the selling side, you’ll make up on the buying side. Though it is taking a few more days to sell than last year, buyers are willing to pay more. 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 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.