Eleven Oaks Realty is proud to present their September 2015 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Median Home Price Up 6%
The biggest story in this month’s Austin Real Estate Price Report comes by way of median home prices. For the 13th month in a row, the median price of a home in Austin outpaced last year. The median price of an Austin home in September 2014 was $311,000 compared to $329,400 in September 2015, marking a 6% increase in year over year numbers. Though prices continue to increase, buyers continue to make strong offers and drive prices up even more. It will be interesting to see how long these increases last. With the strength of the job market and the number of people moving to Austin, my suspicion is price increases are here for the long haul.
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? Though prices are going up, we are entering the perfect time of year to buy a house if you want to get the best deal possible. November, December and January are the three best months to buy a home in Austin. Why? Because sellers who are putting up with the disruption of the home selling process through the Holidays are motivated to sell. Will you have as many choices as you will in Spring? Likely not. Will you encounter less competition? Absolutely. If you want to be a home owner in the coming months, start your search now. You’ll face fewer multiple offer situations and have a bit more time to make a decision.
What does this mean to sellers? If you’re thinking about selling, there are still strong buyers in the market. Are there as many as there were during Spring? No. But, there are still buyers who can’t wait until Spring to find a home. Though you probably won’t get as much interest as you would during Spring, you only need one person to fall in love with your house. Selling now will put the money in your pocket before the end of the year, so you can move on with the next phase of your life.
Time to Sell Home in Austin Up 9%
In September 2015, it took 44 days to sell a home in Austin, on average, compared to 40 days in September 2014, marking a 9% (4 day) increase in year over year numbers. Though it is taking a bit longer to sell a home in Austin than last year, buyers are still willing to pay more than they were in 2014. For most sellers, the few extra days is a good trade off for more money in their pocket at closing.
Number of Homes Taken Off the Market Up 18%
This month, we are back to a significant increase in the number of homes taken off the market in Austin. In September 2015, there were 361 homes taken off the market compared to 306 in September 2014. This marked an 18% (55 home) increase in year over year numbers. As the market continues to strengthen, we still have sellers testing the market. Sellers who, if they don’t get their price, will simply take their homes off the market and try again next year. Even though buyers are willing to pay more than they were last year, they aren’t willing to pay way over market.
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 Up 1%
In September 2015, Austin saw a 1% increase in the number of homes sold from September 2014 to September 2015. In September 2015, we saw 942 homes sell in Austin compared to 936 in September 2014 marking a 1% (6 home) increase in year over year numbers.
Austin Housing Inventory Down 8%
In September 2015, we saw 2.5 months of inventory on the market, compared to 2.7 months of inventory in September 2014, marking an 8% decrease in year over year numbers. Though inventory has steadily increased since Spring, it is still at seller’s market levels. If you want to sell, now is not a bad time to consider it.
Austin Homes Under Contract Up 6%
In September 2015, 941 homes went pending (under contract) in Austin compared to 884 in September 2014, marking a 6% increase in year over year numbers. As expected, the number of homes under contract has dropped since Spring peaks. But, we are still up a bit from last year, showing how strong our market continues to be.
Number of Homes on the Market Up 2%
In September 2015, we had 3,687 homes for sale in Austin, compared to 3,614 in September 2014, showing a 2% (73 home) increase in year over year numbers.
Number of Homes Listed for Sale Up 6%
In September 2015, we saw 1,115 homes introduced to the market compared to 1,051 in September 2014, marking a 6% (64 home) increase. This confirms what we have been seeing in the market. It seems more sellers are confident with the strength of the market to list their homes now rather than waiting until Spring.
Supply Up 2% and Demand is Up 1%
This month we saw a 2% increase in supply (number of properties for sale) and a 1% increase in demand (number of sold properties).
Median for Sale Up 13% vs Median Sold Price Up 6%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 13% increase in the median for sale price and a 6% increase in the median sold price of a single family home in year over year numbers. Sellers are confident they can get more this year and are pricing higher. Though buyers are willing to pay more than last year, they aren’t willing to pay as much as sellers are asking. If you like a house that’s priced too high, try to negotiate with the seller. You just might be successful.
Source: Clarus Market Metrics, ACTRIS Sold Data
September 2015 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for September 2015 Austin home sales below. The most expensive home that sold in September 2015 sold for $2,700,000 and the least expensive home sold for $80,000. Homes ranged in size from 532 sqft – 7,153 sqft with an average size of 2,231 sqft. The average price per square foot for a home that sold in Austin in September 2015 was $195.71 with the lowest being $32.00/sqft and the highest being $675.32/sqft. It took, on average, 38 days to sell a home in Austin and sellers received, on average, 96.33% 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||September 2015|
|Property Type||Single Family Homes||Number Sold||948|
|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 sell. The seasonal slow down hasn’t quite hit yet and even though we have more inventory than we had during Spring, demand is still strong. Recently, there has been increasing talk of imminent mortgage interest rates hikes, which will likely have an effect on home prices. Get your home on the market before Thanksgiving and take advantage of favorable market forces.
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 2.5 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. Historically, homes that sold in Spring sell for more than at any other time of the year. For more info about our Home Selling Program and why it is the best in Austin, check out Sell My Austin Home.
If you’re looking to buy, don’t throw in the towel. We are entering one of the best times of year to buy. November and December have always been ideal months to buy a home if you’re looking to get the best deal. Most people don’t want to be bothered with house hunting over the Holidays, which means less competition and less chance of multiple offers. Interest rates are lower than they have been in a few years, but are predicted to increase. With interest rates being a significant factor in determining affordability, waiting until Spring could mean you can afford a lot less. 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.
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.