December 2013 Austin Real Estate Price Report

Eleven Oaks Realty is proud to present their December 2013 Austin Real Estate Price Report measuring activity in the Austin single family home market.

9% Fewer Austin Homes Under Contract

The biggest story in this month’s Austin Real Estate Price Report comes by way of homes that accepted a contract (went pending). In December 2013, there were 546 homes that went pending compared to 601 in December 2012 marking a 9% decrease in year over year numbers. Last month, we saw an increase in the number of homes that accepted a contract and we thought that meant we would not see the usual winter slow down. However, as we were out in the market, it did appear it had slowed down slightly and the sales data confirms our experience. In 2012, we saw no slow down during the holidays and though inventory remains low and the market remains strong, 2013 home buyers decided to put their home search on hold to spend time with family.

What does this mean to buyers? There is room to negotiate. Sellers who expected the market to be as strong as it was in Spring 2013 are having to realign their expectations. We are seeing more price reductions and most homes are selling for less than list price. Take advantage of this slow down before the rush comes in Spring 2014. Historically, buyers who buy during winter months have gotten better deals than those who wait until Spring and Summer. Be proactive and patient. As we get further into January, more homes will get listed.

What does this mean to sellers? Take this time to prepare your home to get on the market when the busy Spring buying season starts. Declutter, paint, complete the repairs you put off over the holidays, improve your home’s curb appeal and start monitoring the market more closely with our Austin Home Values tool. Preparing your home to meet the market now, so you’re ready when the market takes off again.

Austin Housing Inventory Down 13%

Though we saw a decrease in the number of homes that accepted a contract in December 2013, we also saw a slow down in the number of homes that were listed. As such, inventory is still incredibly low. In December 2013, we saw 2.4 months of inventory compared to 2.8 months back in December 2012. To put these numbers in perspective, a balanced market is considered 6 months of inventory with anything below 3 considered a seller’s market, so this market “slowdown” is relative.

Austin Median Home Price Up 14%

This month, we saw a 14% increase in the median home sale price of a home in Austin. In December 2013, the median home price was $290,000 compared to $255,000 in December 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 Home Values Report.

Time to Sell Home in Austin Down 11%

In December 2013, it took 52 days to sell a home in Austin, on average, compared to 58 days in December 2012. Though a decrease from last December’s numbers, 52 days is a significant increase from the 27ish days it was taking during the Spring/Summer months. Again, nothing to be alarmed about as a “normal” market is 90 days and we are still well below that. But, it does show buyers are being pickier and waiting for the right house to come up, not just buying anything like they were in Spring 2013.

12% Fewer Homes on the Market Compared to December 2012

In December 2013, we had 2,210 homes for sale in Austin, compared to 2,534 in December 2012. We continue to see fewer homes on the market, an indication that sellers are either waiting until Spring to list or are staying put. The majority of buyers in Austin are coming from those relocating to Austin and those currently renting. Low interest rates, good jobs and seemingly affordable real estate has encouraged those with means to buy a home.

Number of Sold Homes in Austin Down 4%

In December 2013, Austin saw a 4% decrease in the number of homes sold from December 2012 to December 2013 numbers. In December 2013, we saw 806 homes sell in Austin compared to 843 in December 2012. Though not a statistically significant finding, it confirms the slow down we saw in the market last month.

Number of Homes Listed for Sale Down 10%

In December 2013, we saw 489 homes introduced to the market compared to 546 in December 2012. It appears sellers who might be considering selling their homes are waiting until after the Holidays. This could explain why there weren’t as many sales in December 2013 as we’d expected. Buyers appear to be more picky about what they want and sellers aren’t giving them enough choices.

Number of Homes Taken Off the Market Up 33%

In December 2013, we saw 344 homes taken off the market compared to 258 homes in December 2012, which is a 33% increase. This change marks the highest difference in year over year numbers we saw in all of the data calculated. Some of the homes taken off the market could be a function of the end of year listing agreements expiring. Many agents who get listings often put an end date at the end of the calendar year. Sometimes home sellers need a break from always having their homes ready to show and wait until Spring to realist. It will be interesting to see what the numbers of new listings over the next few months show.

Did your home expire? Check out our Austin Home Not Selling resources page to find out why.

Supply is Down 12% and Demand is Down 4%

This month we saw a 12% decrease in supply (number of properties for sale) and a 4% decrease in demand (number of sold properties).

Median for Sale Up 14% 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 14% 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.

Source: Clarus Market Metrics, ACTRIS Sold Data

December 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 December 2013 Austin home sales below. The most expensive home that sold in December 2013 was $3,590,000 and the least expensive home sold for $41,000. Homes ranged in size from 536 sqft – 8,814 sqft with an average size of 2,260 sqft. The average price per square foot for a home that sold in Austin in December 2013 was $163.12 with the lowest being $21.15/sqft and the highest being $600/sqft. It took, on average, 42 days to sell a home in Austin and sellers received, on average, 97.37% 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 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 it’s time to buy. Those of you that are from areas with more normal markets may be surprised by the recommendation. I could name 100 cities where if you had the same numbers, it would be time to sell. However, with Austin on pace to continue to grow, companies hiring employees with well paying jobs and low interest rates expected to rise, we encourage buyers in the market now to make home buying a priority and find something before the market heats up again. We aren’t seeing the crazy overbids and lines in front of new listings that we saw during the busy months. But, in my opinion, it is only a matter of weeks before those days are back. If you’re thinking of buying a home, we can help! We know the market and can help you get a great deal. For more info about our Home Buyer Representation Program, check out Austin Buyer Representation.

If you’re a seller, use this time to get your home ready for the busy Spring home buying market. For whatever reason, Spring/Summer has always been the busiest time to buy a home. With only a few weeks left before it officially starts, now is the time to get your home ready to show. For more info about selling your home, visit 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.