August 2014 Austin Real Estate Price Report

Eleven Oaks Realty is proud to present their August 2014 Austin Real Estate Price Report measuring activity in the Austin single family home market.

Number of Sold Homes in Austin Down 18%

The biggest story in this month’s Real Estate Price Report comes by way of number of properties sold. As predicted in our July 2014 Austin Real Estate Price Report, the number of sold homes went down significantly compared to last year’s numbers. In August 2014, Austin saw an 18% decrease in the number of homes sold from August 2013 to August 2014. In August 2014, we saw 1,001 homes sell in Austin compared to 1,222 in August 2013. It seems this year’s price increases have scared some buyers away. This year’s Spring housing market not only brought a lot of activity to the market, but also significant price increases. More buyers this year seemed to get frustrated with multiple offers and overbids and have decided to put their house hunt on hold.

What does this mean to buyers? If you got frustrated with multiple offers and overbids in the Spring, don’t do what many of the unsuccessful home buyers did and give up. Yes, Spring was an incredibly frustrating time to be in the market to buy a home, but Spring is behind us and there are opportunities out there for buyers. We have more inventory than we’ve had in months, more homes being introduced to the market and homes are taking longer to sell. Translation – things have slowed down. Get back out there and devote some time to house hunting. Next year when your friends who decided to put off their search are out there freaking out with multiple offers and overbids, you can enjoy all of the awesome things Austin has to offer in Spring.

What does this mean to sellers? Though the market has slowed a little, that doesn’t mean selling your home will be impossible. You’ll see later in our report, there has been a significant increase in the number of homes taken off the market, which shows buyers aren’t afraid to walk away from a house that they feel is overpriced. But, buyers are also willing to pay more for a house then they were at this time last year. Prepare your home to meet the market and price it right, and you will have no trouble finding a buyer.

Number of Homes Taken Off the Market Up 44%

For the first time in months, we saw a significant increase in the number of homes taken off the market in Austin. In August 2013, there were 253 single family homes taken off the market compared to 365 in August 2014, marking a 44% increase. Many of these homes were taken off the market due to seasonal trends and others unrealistic sellers who thought their homes were worth much more than they are. For most families, August is a transition month. Kids are going back to school and parents who haven’t sold their homes yet don’t want to disrupt the kid’s schedules and decide to put off their sale until next year. On the flip side, there are also sellers who have tried to test the market to see if they can get a certain number for their homes. If they can’t, they simply take their home off the market. Of course there are other reasons homes don’t sell, but my suspicion is most of the 365 homes that were taken off the market fall under one of these two categories.

Having trouble selling your home? Check out our Austin Home Not Selling resources page to find out why.

Austin Median Home Price Up 15%

This month we saw a sizable increase in the median sold price of a home in Austin. In August 2013, the median sales price for homes in Austin was $279,250 compared to $320,000 in August 2014, marking a $40,750, or 15% increase. Buyers are willing to pay more for a home this year then they were last year at this time, which shows their confidence in the direction of the market. This increase is also a positive indication for sellers who are looking to sell soon. 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.

Austin Housing Inventory Up 3%

In August 2014, we saw 2.5 months of inventory on the market, compared to 2.4 months of inventory in August 2013, marking a 3% increase in year over year numbers. Though inventory is up slightly from last year, we are still in a seller’s market with less than 3 months of inventory currently on the market.

Time to Sell Home in Austin Up 5%

In August 2014, it took 34 days to sell a home in Austin, on average, compared to 32 days in August 2013, marking a 5% increase in year over year numbers. This upward trend starting back in May is expected as we head into the seasonal slow down we expect to see from August – December.

Austin Homes Under Contract Up 3%

In August 2014, 979 homes went pending (under contract) in Austin compared to 946 in August 2013, marking a 3% increase in year over year numbers. This slight uptick is more confirmation though our market slowed a bit in August, we would expect to see a stronger September than we did last year.

Number of Homes on the Market Up 8%

In August 2014, we had 3,743 homes for sale in Austin, compared to 3,452 in August 2013, showing an 8% increase in year over year numbers. More sellers have decided to take advantage of increased prices and not take the risk of waiting until Spring. With talk of interest rate hikes and the uncertainty in world politics, it might be a safer bet to sell now and not take the chance on waiting for a frenzied Spring market that might never come.

Number of Homes Listed for Sale Down 2%

In August 2014, we saw 1,280 homes introduced to the market compared to 1,306 in August 2013, marking a 2% decrease.

Supply Up 8% and Demand is Down 18%

This month we saw an 8% increase in supply (number of properties for sale) and an 18% decrease in demand (number of sold properties). This stat is yet another indicator it’s time to buy a home in Austin. With more choices and less competition, buyers are getting more time to make up their minds and more choices than they got just a few months ago. Sellers should recognized buyers have more options and take the extra time to prepare their homes to meet the market. The better value they can make their homes, the more money they’ll receive.

Median for Sale Up 8% vs Median Sold Price Up 15%

This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 8% increase in the median for sale price and a 15% increase in the median sold price of a single family home in year over year numbers. Sellers think their homes are worth more than they did last year and buyers seem to be willing to oblige them.

Source: Clarus Market Metrics, ACTRIS Sold Data

August 2014 Real Estate Price Report – Strictly Numbers

For those of you who prefer to see the actual numbers, we’ve included the figures for August 2014 Austin home sales below. The most expensive home that sold in August 2014 sold for $3,450,000 and the least expensive home sold for $41,200. Homes ranged in size from 576 sqft – 8,659 sqft with an average size of 2,274 sqft. The average price per square foot for a home that sold in Austin in August 2014 was $177.34 with the lowest being $15.85/sqft and the highest being $693.20/sqft. It took, on average, 29 days to sell a home in Austin and sellers received, on average, 97.98% of their original list prices.

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 (again) is – it’s time to buy. Inventory is creeping up and buyers have less competition with a decrease in demand. It seems this Spring market was intimidating to many would be home buyers, and many have put off their search. If you’d still like to own a home in Austin, take advantage of the slow down in the market and continue your search. You’ll find it is a much less frustrating market. When your friends start their home searches again next Spring, you’ll be all settled in your new home. For more info about buying a home, visit Buy a Home in Austin.

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 strong offers. With 2.5 months of inventory, we are still in a strong sellers market, just not as strong as the Spring 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. If you just want to test the market, wait until Spring. 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, check out Sell My Austin Home.

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.