Eleven Oaks Realty is proud to present their September 2013 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Housing Inventory Down 23%
As it has been for months and months now, the biggest story in this month’s Austin Real Estate Price Report comes by way of inventory. In September 2013, we saw a 23% decrease in the months supply of inventory in year over year numbers. I almost feel like a broken record to report again as we’ve been saying for the past several months, inventory for single family homes in Austin is down in year over year numbers. In September 2012, there were 3 months supply of inventory on the market city wide compared to 2.3 months in September 2013. However, inventory has been slowly creeping up from March 2013 lows, indicating a slight slow down from buyers. With seasonal trends and us heading into the slower winter months, this increase is completely normal and expected.
What does this mean to buyers? Stay proactive and take advantage of the slight slow down we’re seeing. Winter is often the best time to purchase a home in Austin, and though our 80 and 90 degree days make it hard to believe, winter is right around the corner.
What does this mean to sellers? If you need to sell, get your home on the market as soon as possible. As we head into the holidays, we usually see a decrease in the amount of buyer activity in the market. Get your home on the market and price it right so you’ll be out of it before the winter slow down. If you don’t need to sell now, hold on for a few more months and take advantage of the seasonal spring uptick we usually see. More buyers in the market usually translates to higher prices for sellers.
11% Fewer Homes on the Market than September 2012
In September 2013, we had 3,132 homes for sale in Austin, compared to 3,503 in September 2012. 11% isn’t a huge decrease by any means, but it still confirms buyers are in the market and are ready to buy what they feel are good values.
Austin Median Home Price Up 16%
This month, we saw a 16% increase in the median home sale price of a home in Austin. In September 2013, the median home price was $286,500 compared to $246,000 in September 2012. Median home price helps us see the distribution of homes being 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 Neighborhood Market Reports.
Number of Sold Homes in Austin Up 17%
In September 2013, Austin saw a 17% increase in the number of homes sold from September 2012 to September 2013 numbers. In September 2013, we saw 912 homes sell in Austin compared to 778 in September 2012. We expected to see a slow down in September and though we had less sales than in August 2013, we still had 17% more than we had last year. This increase is yet another indication of the number of buyers in the market to buy this year.
7% More Austin Homes Under Contract
In September 2013, there were 856 homes that went pending compared to 803 in September 2012 marking a 7% increase in year over year numbers. The numbers all seem to be telling the same story – homes that are priced right are selling.
Number of Homes Listed for Sale Up 15%
In September 2013, we saw 978 homes introduced to the market compared to 849 in September 2012. This year, more sellers seem to be putting their homes on the market. We’ve been seeing more home owners looking to move up, take advantage of the low interest rates and moving to more expensive neighborhoods. Interest rates are the single most important factor in determining your monthly payment. We usually see home sales numbers go up when interest rates are down. This year has been no different.
Number of Homes Taken Off the Market Up 3%
In September 2013, we saw 285 homes taken off the market compared to 278 homes in September 2012, marking a 3% increase in year over year numbers. Statistically speaking, 3% is not significant, but it does show homes that are priced too high for the market do not sell, even with increased buyer demand.
Did your home expire? Check out our Austin Home Not Selling resources page to find out why.
Time to Sell Home in Austin Down 34%
In September 2012, it took, on average, 53 days to sell a home in Austin while in September 2013, it took around 35 days. A normal market is considered 90 days, so 35 days is incredibly fast, especially considering these are city wide figures. In the more desirable neighborhoods, we’re seeing this number even less than 32.
Supply is Down 11% and Demand is Up 17%
This month we’ve seen an 11% decrease in supply (number of properties for sale) and a 17% increase in demand (number of sold properties). Demand still outpaces inventory, so if you’re looking to sell, strike will the tables are still tipped in your favor and before the winter slowdown.
Median for Sale Up 11% vs Median Sold Price Up 16%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 11% increase in the median for sale price and only a 16% increase in the median sold price of a single family home in year over year numbers. As we saw working in the market in September 2013, it seems buyers are negotiating offers compared to throwing as much money as possible at sellers like we saw earlier in the year.
Source: Clarus Market Metrics, ACTRIS Sold Data
September 2013 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual hard numbers, we’ve included the figures for September 2013 Austin home sales below. The most expensive home that sold in September 2013 was $3,385,000 and the least expensive home sold for $40,000. Homes range in size from 336 sqft-11,018 sqft with an average size of 2,245 sqft. The average price per square foot was $162.47 with the lowest being $23.08/sqft and the highest being $754.94/sqft. It took, on average, 34 days to sell a home in Austin and sellers received, on average, 98.2% of their original list prices.
| Beds | Baths | SqFt | Listing Price | LP/SqFt | Selling Price | SP/SqFt | SP/LP | SP/OLP | DOM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Min | 1 | 1 | 336 | 59900 | 23.08 | 40000 | 23.08 | 0.4742 | 0.4742 | 0 |
| Max | 7 | 9 | 11,018 | 3750000 | 811.07 | 3385000 | 754.94 | 1.6628 | 10 | 698 |
| Average | 3 | 3 | 2,245 | 379745 | 165.31 | 370829 | 162.47 | 0.9855 | 0.982 | 34 |
| Median | 3 | 2 | 2,040 | $299,900 | $142.38 | $300,500 | $140.94 | 100% | 0% | 8 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | September 2013 |
| Property Type | Single Family Homes | Number Sold | 944 |
| Source: | ABoR Sales Data | Area | Austin |
September 2013 Days on Market Report
The majority (66.52%) of the 920 homes that sold in Austin in September 2013 (920) sold in less than 30 days and received, on average, 99.64% of their list prices. As homes stayed on the market longer, sellers received less than their list prices with homes that have been for sale for 120 days or more receiving, on average, 95.99% of their list prices. The lesson here? Homes that are priced right from the beginning sell quickly and for nearly list price.
| 0-30 Days | 31-60 Days | 61-90 Days | 91-120 Days | 120+ Days | |
|---|---|---|---|---|---|
| No. of Listings | 612 | 160 | 72 | 29 | 47 |
| Breakdown % | 0.6652 | 0.1739 | 0.0783 | 0.0315 | 0.0511 |
| Avg % SP/LP | 0.9964 | 0.9643 | 0.9675 | 0.9569 | 0.9599 |
September 2013 Price Analysis Report
The majority of the homes that sold in Austin in September 2013 were priced below $500,000, which is to be expected. You’ll also see that the lower priced homes sold faster than the higher priced homes, which is due largely in part to the increased market for homes below $500k. Homes priced between $500k-$550k sold in the same amount of time as homes priced between $300k-$350k, which might have something to do with the conforming loan limit of $417k.
| Price Range | Quantity | Average DOM |
|---|---|---|
| $149,999 or under | 77 | 25 |
| $150,000 – $199,999 | 145 | 21 |
| $200,000 – $249,999 | 135 | 28 |
| $250,000 – $299,999 | 135 | 22 |
| $300,000 – $349,999 | 85 | 31 |
| $350,000 – $399,999 | 78 | 35 |
| $400,000 – $449,999 | 58 | 39 |
| $450,000 – $499,999 | 48 | 26 |
| $500,000 – $549,999 | 31 | 31 |
| $550,000 – $599,999 | 17 | 51 |
| $600,000 – $699,999 | 30 | 84 |
| $700,000 – $799,999 | 18 | 52 |
| $800,000 – $899,999 | 18 | 58 |
| $900,000 – $999,999 | 13 | 72 |
| $1,000,000 or over | 30 | 105 |
| Total | 920 | 34 |
September 2013 Summary Price Report
Below you’ll find a breakdown of the sales prices of homes in Austin. The average price of a home that sold in September 2013 was $371,515 and the median price was $285,916.
| Summary | List Price | Sale Price |
|---|---|---|
| High | 3750000 | 3385000 |
| Low | 59900 | 40000 |
| Average | 380512 | 371515 |
| Median | 289950 | 285916 |
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 sell, selling when its a buyers market may hurt you on the selling end, but you’ll make it up on the buying 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 (again)…it’s time to sell. With inventory hovering near record lows, a home that’s priced right will have no problem finding a buyer. Buyers again came out in record numbers yet again in September 2013 with a 7% increase in the number of contracts received by sellers in year over year numbers. We saw a small slow down coinciding with school starting in August, but not like we’ve seen in past years. But, sellers are still receiving high offers, with over 99% of list prices received city wide in August. Historically, homes that sell in Winter get less money than homes that sell during the rest of the year, so get your home on the market now and get it sold before we head into the Holidays. If you’re looking to sell, we can help you get top dollar for your home in the shortest time. For more info about the best home selling program in Austin, visit Sell My Austin Home.
If you’re a buyer, that doesn’t mean sit on the fence and wait. Interest rates have jumped up a bit, but seem to have stabilized even given the government shut down. Interest rates have the biggest effect on your monthly payment. Waiting until the market slows down in Winter could mean an increased payment, even if prices go down. If you’re looking to get into the market, the best time to find a great deal is any time you can. For more info about our Home Buyer Representation Program, check out Austin Buyer Representation.
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.
Leave a Reply