Eleven Oaks Realty is proud to present their December 2019 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 8%
The biggest story this month: median home prices in Austin up again this month. For another month, the median price in Austin increases. The median price of an Austin home in December 2018 was $385,000 compared to $417,462 in December 2019, up 8% ($32,462) in year over year numbers. I can’t remember the last time we had a median price decrease. Though we hear talk of a market slow down, I just don’t see it happening for quite some time.
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? Buyers who are waiting for a slowdown in the market might not see one for some time. We’re in the dead of winter and are still seeing median price increases and supply shortages. Austin is booming – with both residents relocating here and investors. High paying jobs and transplants from more expensive cities are giving home buyers the resources they need to buy a home in the Austin area. Though prices in Austin are going up, they are lower than prices in other parts of the country. What some pay in rent for a 2 bedroom apartment could more than cover the cost of a luxury home here. If you’re in the market to buy, you might want to consider doing so sooner rather than later. Interest rates are at all time lows, which will have a greater impact on your monthly mortgage than prices.
What does this mean to sellers? With supply down and demand up, sellers are poised to get top dollar for their homes, even in winter. Though it is taking about 51 days to sell a home in Austin, sellers who are successful get about 8% more than they would have at this time last year. If you’re looking to sell, get your home ready now, so when the spring buyers are out looking, you’ll be ready to offer them an unbeatable offer. Which, does not mean a low price. It means an overall value for a home in great condition.
12% Decrease in Time to Sell Home in Austin
In December 2019, it took 51 days to sell a home in Austin, on average, compared to 58 days in December 2018, marking a 12% (7 home) decrease in year over year numbers. Again this month homes are selling faster than they did this time last month. We are seeing the seasonal increase in time to sell that we typically see at the end of the year. But, it’s still faster than this time last year.
Number of Homes Taken Off the Market Saw a 35% Decrease
In December 2019, there were 242 homes taken off the market compared to 371 in December 2018. This marked a 35% decrease in year over year numbers.
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 Saw an 11% Increase
Austin saw an 11% increase in the number of homes sold from December 2018 to December 2019. In December 2019, we saw 964 homes sell in Austin compared to 868 in December 2018 marking an 11% (96 home) increase in year over year numbers. This year we saw a small bump at the end of the year rather than the typical decrease. It will be interesting to see what happens in January.
28% Decrease in Austin Housing Inventory
In December 2019, we saw 2.0 months of inventory on the market, compared to 2.8 months of inventory in December 2018, showing a 28% decrease in year over year numbers. Though we are in winter, which is typically a slower time of year, we are seeing inventory drop to strong seller’s market levels.
Austin Homes Under Contract Up 1%
In December 2019, 686 homes went pending (under contract) in Austin compared to 682 in December 2018, marking a 1% (4 home) increase in year over year numbers.
22% Decrease in Number of Homes on the Market
In December 2019, we had 2,293 homes for sale in Austin, compared to 2,934 in December 2018, showing a 22% (641 home) decrease in year over year numbers. With a decrease in supply, buyers are feeling the pinch, which is causing them to shell out more money, faster.
5% Increase in Number of Homes Listed for Sale
In December 2019, we saw 536 homes introduced to the market compared to 510 in December 2018, marking a 5% (26 home) increase in year over year numbers. Though we saw a small bump in new listings, it wasn’t enough to offset the increase in buyer demand.
Supply Down 22% and Demand Up 11%
This month we saw a 22% decrease in supply (number of properties for sale) and an 11% increase in demand (number of sold properties).
Median for Sale Up 8% vs Median Sold Price Up 8%
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 an 8% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
December 2019 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for December 2019 Austin home sales below. The most expensive home that sold in December 2019 sold for $4,775,000 and the least expensive home sold for $110,000. Homes ranged in size from 528 sqft – 14,681 sqft with an average size of 2,231 sqft. The average price per square foot for a home that sold in Austin in December 2019 was $249.75 with the lowest being $68.77/sqft and the highest being $1,190.25/sqft. It took, on average, 40 days to sell a home in Austin and sellers received, on average, 96.75% of their original list prices.
| Beds | Baths | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Min | 1 | 1 | 528 | $150,000 | $88.58 | $110,000 | $85.31 | 66.89% | 42.31% | 0 |
| Max | 7 | 11 | 14,681 | $5,474,997 | $2,938.48 | $4,775,000 | $2,595.83 | 120.93% | 140.43% | 579 |
| Avg | 3 | 3 | 2,231 | $562,050 | $255.03 | $547,507 | $249.75 | 98.37% | 96.49% | 47 |
| Median | 3 | 3 | 2,000 | $420,000 | $217.49 | $416,750 | $212.99 | 98.95% | 97.96% | 21 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | Dec-19 |
| Property Type | Single Family Homes | Number Sold | 978 |
| 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. Demand is up 11%, while supply is 20%, which is causing inventory levels to plummet down to strong seller’s market numbers. Even though new listings are up, it is not enough to meet the renewed demand. If supply does not increase signifcantly, we’ll continue to plummet deeper into extreme seller’s market territory, especially as we head into the busy spring months. With two months of inventory on the market, buyers are having to make concessions if they want to find a home. If they find the perfect home, they’ll make an aggressive offer to ensure they are the winning bidder. Savvy sellers who are following the market will see now is the perfect storm. Most sellers are programmed to wait until spring, which might be a good strategy. However, if you want to get a good price for your home and take advantage of extremely low mortgage interest rates, get the process started now and you’ll take advantage of the winter buying market as well.
If you’re a seller who needs to sell now, work with a professional Realtor who can help you position your home as the best value on the 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. 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, keep in mind you typically get a better deal on a house in winter than you would on the same house in spring. With less competition comparatively, sellers are more motivated to make a deal. Also, interest rates are at historic lows. Combine a more competitive price and lower interest rates, your payment will likely be less than it would if you bought in spring. Talk is rates are bound to go up at some point. Interest rates are the single biggest driver of increases in payments. You could end up paying less per month for a more expensive home. Plus, you have this odd time of year on your side. Buyers who think we are approaching the slow time of year will become complacent. If you set alerts, check out new listings as soon as they’re listed and are prepared to make offers, you’ll beat other buyers to the best homes. And, if you’re ready to act, you can make an offer before the competition has time to see it. The best homes are still selling quickly, especially since there are fewer overall choices. You’ll want to give yourself ample time to make a decision. Get your search set up and start looking at new listings now. If you’re looking to buy, we can help you be successful. 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.
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.
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