July 2014 Austin Real Estate Price Report

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

Austin Housing Inventory Up 15%

For the first time in months, we actually saw a significant increase in Austin housing inventory. In July 2014, we saw 2.2 months of inventory on the market, compared to 1.9 months of inventory in July 2013, marking a 15% increase in year over year numbers. Though inventory is up from last year, we are still in a seller’s market with less than 3 months of inventory currently on the market.

What does this mean to buyers? If you were frustrated by the multiple offers and overbids that were common during the Spring housing market, now is your chance to become a homeowner. August has notoriously been a great month for home buyers in Austin, as this is about the time when most buyers give up. Smart home buyers start their home search in August because they know when you have less competition, you’ll get a better deal.

What does this mean to sellers? Understand the market is still strong, but also understand you won’t have the frenzy you would have had during Spring. It will take longer to sell your home and you’ll need to make sure your house appears as a value compared to the other homes on the market. Ideally, the best time to sell a home in Austin is March-May. But, if you can’t wait that long, remember you only need to find 1 buyer, not 100. And, with inventory still at less than 3 months, we are still in a strong seller’s market.

Austin Median Home Price Up 6%

In July 2013, the median sales price for homes in Austin was $302,000 compared to $319,000 in July 2014, marking a $17,900, or 6% increase. It seems buyers are willing to pay more for a home than they were last year, but not as much as they were willing to pay in May and June. This is yet another indicator of the best time to sell a house in Austin is March-May keeping in mind June closings likely found their buyer in May. 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.

Number of Homes Taken Off the Market Up 24%

Like last month, we saw an increase in the number of homes take off the market. In July 2013, there were 215 single family homes taken off the market compared to 266 in July 2014, marking a 24% increase. Looking at the dynamics of the market, this increase should not come as a surprise to anyone. After two very strong years in Austin’s real estate market, we are seeing some sellers looking to test the market. They want a certain dollar amount for their home and put them on the market to see if they can get it. Usually they wait a couple of months and then, when they don’t get an acceptable offer, take their homes off the market. In this market, motivated sellers find buyers, no matter what condition their home is in. Every home in Austin will sell if exposed to the right buyers at the right price.

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

Time to Sell Home in Austin Up 2%

In July 2014, it took 30 days to sell a home in Austin, on average, compared to 29 days in July 2013, marking a 2% increase in year over year numbers, which is not even enough to be significant. Clearly, motivated buyers are still out there. They are making strong offers, just not as fast as they were back in the Spring, which is another seasonal trend we would expect.

Austin Homes Under Contract Down 5%

In July 2014, 1,077 homes went pending (under contract) in Austin compared to 1,132 in July 2013, marking a 5% decrease in year over year numbers. It seems our seasonal August downturn will be a little bit more pronounced this year than it was last year.

Number of Homes on the Market Up 6%

In July 2014, we had 3,687 homes for sale in Austin, compared to 3,491 in July 2013, showing a 6% increase in year over year numbers. It seems more sellers are looking to capitalize on the hot market than they were last year. We have also noticed more sellers who are getting relocated out of the area this year than they were last year. Perhaps the strength of the Austin job market has attracted recruiters attention and they are poaching our highly trained employees.

Number of Sold Homes in Austin Down 11%

In July 2014, Austin saw an 11% decrease in the number of homes sold from July 2013 to July 2014 numbers. In July 2014, we saw 1,102 homes sell in Austin compared to 1,241 in July 2013. Fewer homes sold this year than last year, but they sold for more.

Number of Homes Listed for Sale Up 8%

In July 2014, we saw 1,519 homes introduced to the market compared to 1,405 in July 2013, marking an 8% increase. More inventory means more choices for buyers.

Supply Up 6% and Demand is Down 11%

This month we saw a 6% increase in supply (number of properties for sale) and an 11% 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 get.

Median for Sale Up 8% 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 an 8% 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 think their homes are worth more than they did last year and buyers agree, though are still negotiating to some degree.

Source: Clarus Market Metrics, ACTRIS Sold Data

July 2014 Real Estate Price Report – Strictly Numbers

For those of you who prefer to see the actual numbers, we’ve included the figures for July 2014 Austin home sales below. The most expensive home that sold in July 2014 sold for $4,150,000 and the least expensive home sold for $44,740. Homes ranged in size from 570 sqft – 8,014 sqft with an average size of 2,275 sqft. The average price per square foot for a home that sold in Austin in July 2014 was $180.96 with the lowest being $17.21/sqft and the highest being $1,245.39/sqft. It took, on average, 26 days to sell a home in Austin and sellers received, on average, 98.45% 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 is it’s time to buy. Inventory is creeping up and buyers have more choices. 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 less than 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.