The Dream Home Realty Group is proud to present their October 2012 Austin Real Estate Price Report measuring activity in the Austin single family home market.
Austin Housing Inventory Down 43%
The biggest story in this month’s numbers is the same as its been for the past several months – we’re low in inventory. In October 2012, we saw a 43% decrease in months supply of inventory from already very low September 2012 numbers to 2.6 months of inventory. October 2011 saw 4.6 months of inventory, a two month increase from October 2012. As we predicted last month, it seems the Summer boom has continued well into Fall in 2012. By what we’ve been seeing during the first part of November, it doesn’t appear to be slowing down either.
What does this mean to buyers? If you’re in the middle of your home search, you’ll still need to be proactive. Buyers are still getting good deals on homes, but they need to be ready to jump on an opportunity when they first see it. We still haven’t seen the Fall slow down, which means buyers are still out in full force. Make your house hunt a priority and you’ll increase your chances of finding the right house and getting it at the right price before anyone else snatches it up.
21% Fewer Homes on the Market than October 2011
In October 2012, we had 3,303 homes listed for sale in Austin, compared to 4,155 in October 2011. The story is not much different from last month. Buyers continue to snatch up inventory quickly, especially in neighborhoods with the best schools. With record numbers of people moving to Central Texas, there aren’t enough homes to meet the demand. If you’re thinking of selling, think about doing so sooner rather than later to take advantage of the increased demand.
Austin Median Home Price Up 14%
This month, we saw a significant 14% increase in the median home price in Austin with an $33,725 increase in year over year numbers. The median home price in October 2011 was $236,225 vs $269,950 in October 2012. Median sold price is a tricky stat. It is more of a reflection of the price range of homes that are selling rather than a measure of the increase or decrease in home values. With an increased median price, it simply means more homes in the higher price ranges are selling, versus homes in the lower price ranges. We’d have to do a neighborhood analysis to determine how much a particular home has gained or lost in value over a particular time period.
Number of Sold Homes in Austin Up 35%
In October 2012, we saw a 35% increase in the number of homes sold from October 2011 numbers. In October 2012, we saw 822 homes sell in Austin compared to 602 in October 2011. October 2012 saw more home sales than September 2012 and appear to be creeping back towards the Spring numbers. As we mentioned in last month’s report, the market did not appear to be slowing down like it usually would during the Holidays. These numbers seem to prove that prediction.
24% More Austin Homes Under Contract
In October 2012, there were 825 homes that went pending compared to just 663 in October 2011 marking a 24% increase. This significant increase from last year’s figures is another indicator that this market remains strong, even through the usual, slower times.
Number of Homes Listed for Sale Up 11%
In October 2012, we saw an 11% increase in the number of homes being introduced to the market than in October 2011. In October 2012, there were 916 homes listed for sale in Austin compared to 823 in October 2011. We’ve been saying for the last couple of reports, it’s time for sellers to consider putting their homes on the market to take advantage of the increased demand and it seems some of them have.
Number of Homes Taken Off the Market Down 29%
With such low inventory levels, homes that might not necessarily have been sold in a normal market are selling causing a remarkable 29% decrease in the number of homes that were taken off the market in year over year numbers. In October 2011, 469 homes were taken off the market and in October 2012, only 33 were taken off the market. Sellers seem more realistic in their pricing and buyers seem more willing to shell out the cash needed to get into the homes they want. If demand continues to stay strong, I would expect the number of homes taken off the market to continue to decrease.
Did your home expire? Check out our Austin Home Not Selling resources page to find out why.
Time to Sell Home in Austin Down 27%
In October 2011, it took, on average, 71 days to sell a home in Austin while in October 2012, it is taking around 52 days, 5 days less than it took in September 2012. A normal market is considered 90 days, so 52 days is fairly low. In neighborhoods where schools are superior, we’re seeing this number down under 14 days with the best homes being sold in the first couple of days from when it was listed.
Supply is Down 21% and Demand is Up 35%
This month we’ve seen a 21% decrease in supply (number of properties for sale) and a remarkable 35% increase in demand (number of sold properties). Yet another indicator more residents are deciding to stay put while others continue to move to Austin in record numbers, even during the traditionally slow Fall/Winter months.
Median for Sale Up 16% vs Median Sold Price Up 14%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 16% increase in the median for sale price and a 14% increase in the median sold price of a single family home in year over year numbers. Sellers appear to be more successful at getting buyers to come up to their price, even though they are setting higher list prices, an indication of the strength of the market.
Source: Clarus Market Metrics, ACTRIS Sold Data
October 2012 Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual hard numbers, we’ve included the figures for October 2012 Austin home sales below. The most expensive home that sold in October 2012 was $4,200,000 and the least expensive home sold for $54,180. Homes range in size from 531sqft-10,654sqft with an average size of 2,349sqft. The average price per square foot was $150.43 with the lowest being $35.11/sqft and the highest being $690.96/sqft. It took, on average, 57 days to sell a home in Austin and sellers received, on average, 94.84% of their list prices.
| Beds | Baths | SqFt | Listing Price | LP/SqFt | Selling Price | SP/SqFt | SP/LP | SP/OLP | DOM | |
|---|---|---|---|---|---|---|---|---|---|---|
| High | 7 | 7 | 10,654 | $4,200,000 | $781.69 | $4,200,000 | $690.96 | 113.7% | 128.1% | 550 |
| Low | 1 | 1 | 531 | $58,000 | $36.78 | $54,180 | $35.11 | 72% | 9.8% | 0 |
| Average | 3 | 2 | 2,349 | $385,828 | $155.48 | $371,124 | $150.43 | 97.21% | 94.84% | 57 |
| Median | 3 | 2 | 2,046 | $275,000 | $131.35 | $269,950 | $129.35 | 97.7% | 96.4% | 31 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | October 2012 |
| Property Type | Single Family Homes | Number Sold | 822 |
| Source: | ABoR Sales Data | Area | Austin |
October 2012 Days on Market Report
The overwhelming majority (49.76%) of the 822 homes that sold in Austin in October 2012 (409) sold in less than 30 days and received, on average, 98.31% of their list prices. As homes stayed on the market for longer, sellers received less than their list prices with homes that have been for sale for 120 days or more receiving, on average, 95.2% of their list prices. The lesson here? Homes that are priced right from the beginning sell quickly and for list price.
| 0-30 Days | 31-60 Days | 61-90 Days | 91-120 Days | 120+ Days | |
|---|---|---|---|---|---|
| No. of Listings | 409 | 144 | 98 | 61 | 110 |
| Breakdown % | 49.76% | 17.52% | 11.92% | 7.42% | 13.38% |
| Avg % SP/LP | 98.31% | 96.71% | 96.63% | 95.61% | 95.2% |
October 2012 Price Analysis Report
The majority of the homes that sold in Austin in October 2012 were priced below $400,000, 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 $400k.
| Price Range | Quantity | Average DOM |
|---|---|---|
| $149,999 or under | 115 | 52 |
| $150,000 – $199,999 | 152 | 39 |
| $200,000 – $249,999 | 105 | 40 |
| $250,000 – $299,999 | 97 | 47 |
| $300,000 – $349,999 | 52 | 47 |
| $350,000 – $399,999 | 58 | 45 |
| $400,000 – $449,999 | 58 | 68 |
| $450,000 – $499,999 | 31 | 58 |
| $500,000 – $549,999 | 24 | 84 |
| $550,000 – $599,999 | 24 | 76 |
| $600,000 – $699,999 | 33 | 77 |
| $700,000 – $799,999 | 20 | 68 |
| $800,000 – $899,999 | 13 | 130 |
| $900,000 – $999,999 | 12 | 122 |
| $1,000,000 or over | 28 | 155 |
| Total | 822 | 57 |
October 2012 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 October 2012 was $371,124 and the median price was $269,950.
| Summary | List Price | Sale Price |
|---|---|---|
| High | $4,200,000 | $4,200,000 |
| Low | $58,000 | $54,180 |
| Average | $385,828 | $371,124 |
| Median | $275,000 | $269,950 |
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 should have no problem finding a buyer. Buyers again came out in record numbers yet again in October 2012 with an almost 24% increase in the number of contracts received by sellers. As we head into December, buyers will be distracted with the Holidays. But, the serious buyers who are motivated to find a house will not let that stop them. 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. As more and more inventory gets snatched up, you’ll find less and less available. Waiting until Spring when there are more choices is what most inexperienced buyers choose to do. If demand continues to increase, this could mean much fewer choices (coupled with much higher prices) for those who wait. Smart buyers know Winter is the best time to find a good deal on a house. Historically, buyers have been able to negotiate great deals from sellers who need to sell during Winter. 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 Buy a Home in Austin.
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@AustinRealEstateHomesBlog.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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