Eleven Oaks Realty is proud to present their May 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 21st month in a row, the median price of a home in Austin outpaced the previous year. The median price of an Austin home in May 2015 was $360,000 compared to $365,000 in May 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 21 straight months of price increases, it doesn’t look like we’re going to see a pricing slow down any time soon. Though this month’s increase isn’t as drastic as some of the previous months, prices are still up. If you’re looking to buy a home in Austin, it doesn’t appear waiting is a good strategy. Summer is when we’ll see the most inventory, so start your search now if you have a specific neighborhood you want to target. Be proactive and decisive and you should have no trouble finding a home.
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.
14% Increase in Time to Sell Home in Austin
In May 2016, it took 33 days to sell a home in Austin, on average, compared to 29 days in May 2015, marking a 14% increase in year over year numbers. Though it is taking a few days longer for homes in Austin to sell, buyers are willing to pay more money making the wait worth while.
Number of Homes Taken Off the Market Up 6%
In May 2016, there were 216 homes taken off the market compared to 203 in May 2015. This marked a 6% (13 home) increase in year over year numbers. We’ve seen this trend of an increasing number of homes taken off the market for several months now. It seems that sellers opt to take their homes off the market rather than reduce their asking prices to try to find 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.
No Change in the Number of Sold Homes in Austin
In May 2016, Austin saw no change in the number of homes sold from May 2015 to May 2016. In May 2016, we saw 1,101 homes sell in Austin compared to 1,105 in May 2015 marking a 4 home decrease in year over year numbers.
Austin Housing Inventory Down 14%
In May 2016, we saw 1.7 months of inventory on the market, compared to 2.0 months of inventory in May 2015, marking a 14% decrease in year over year numbers. Inventory in the Austin real estate market is very lean, which is making buyers feel the pinch.
Austin Homes Under Contract Up 19%
In May 2016, 1,363 homes went pending (under contract) in Austin compared to 1,145 in May 2015, marking a 19% (218 home) increase in year over year numbers. For the last few months we’ve seen an increase in the number of homes that accepted a contract, but not too much of an increase in the number of homes that sold. Could be that the new lending rules are requiring longer escrow periods, which is spreading out the closed sales. Or, it could also mean that more deals are falling out of escrow. It will be interesting to see what next month’s figures show.
8% Increase in Number of Homes on the Market
In May 2016, we had 3,908 homes for sale in Austin, compared to 3,618 in May 2015, showing an 8% (290 home) increase in year over year numbers. Though we are seeing an increase in the number of homes on the market, we’re still seeing extreme seller’s market levels of inventory, especially in highly desirable neighborhoods.
Number of Homes Listed for Sale Up 4%
In May 2016, we saw 1,563 homes introduced to the market compared to 1,497 in May 2015, marking a 4% (66 home) increase. It seems this year sellers are just as confident as they have been in years past at their ability to find a buyer for their home.
Supply Up 8% and Demand Saw No Change
This month we saw an 8% increase in supply (number of properties for sale) and no change in demand (number of sold properties). It seems buyers have a slight advantage from last year in terms of number of choices they might have in a particular neighborhood.
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. Even though supply is up and demand saw no change, buyers are still making very competitive offers on homes.
Source: Clarus Market Metrics, ACTRIS Sold Data
May 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 May 2016 Austin home sales below. The most expensive home that sold in May 2016 sold for $5,360,000 and the least expensive home sold for $72,500. Homes ranged in size from 452 sqft – 7,939 sqft with an average size of 2,258 sqft. The average price per square foot for a home that sold in Austin in May 2016 was $207.76 with the lowest being $43.71/sqft and the highest being $861.78/sqft. It took, on average, 33 days to sell a home in Austin and sellers received, on average, 98.35% of their original list prices.
| Beds | Baths | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Min | 1 | 1 | 452 | $74,500 | $43.71 | $72,500 | $43.99 | 66.68% | 60.59% | 1 |
| Max | 6 | 8 | 7,538 | $5,499,000 | $861.78 | $5,360,000 | $839.99 | 113.56% | 161.49% | 724 |
| Avg | 4 | 3 | 4,348 | $465,590 | $207.76 | $458,411 | $205.49 | 99.26% | 98.35% | 33 |
| Median | 3 | 3 | 4,053 | $369,500 | $173.91 | $365,000 | $173.09 | 99.89% | 99.39% | 8 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | May 2016 |
| Property Type | Single Family Homes | Number Sold | 1107 |
| 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. Supply is up, which will give buyers slightly more choices than they had in previous years. Though we still have very limited inventory, the decreased demand might give buyers the slight edge they need to be successful in this market if they can be decisive. Though the average time on market is about a month, the best homes are selling quickly. Be proactive with your search. Go inside homes as soon as they’re listed. If the home is the perfect match for you, make an offer. Don’t wait too long or the home might be gone.
If you haven’t started your home search, get started now. Though we’re starting to see multiple offers, it doesn’t seem to be at the level it was last year. Could be buyers are waiting until later in the buying season to start their search. By starting yours now, you may be able to find something and close before the market really heats up. 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, we’re entering the best time of year to do so. Early Summer has historically brought sellers more money than any other time of year. As more buyers enter the market, they’ll have to be more competitive in their offers to be successful. Time to sell is at just over one month 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.
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 1.7 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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