Eleven Oaks Realty is proud to present their March 2011 Austin Real Estate Price Report measuring activity in the Austin single family home market.
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Inventory At Its Lowest Level in Over 2 Years
The big story for March 2011’s Austin Real Estate Price Report is again inventory. In year over year numbers, Austin’s single family home inventory was down 15% in March. In March of 2010 there was just about 4 months supply of inventory on the market and March 2011 kept 3.5 months of inventory. This marks the lowest inventory levels that we’ve seen in over two years. Seller alert! If you’re waiting to sell a home, you’re making a mistake. Low inventory means less competition. Why wait until the summer when your home will be one of the many that’s on the market?
Supply and Demand Down 15%
Again, it seems both buyers and sellers are waiting to see what the market does before they make a move. Both supply and demand for housing was down 15% this month, showing a decrease in overall market activity.
Median Sold Price Up 1%
With such a small change, we can essentially call this a constant. Though we’d like to see this number increase every year to help home owners build equity, we can be thankful we are still in the positive as opposed to losing value.
Median for Sale Saw No Change vs Median Sold Price Up 1%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw no change in the median for sale price of a single family home in year over year numbers, indicating sellers seem to be in tune with the market. The median sold price was up 1%, which I would call constant.
Number of Sold Properties Down 16%
The number of sold single family homes in Austin was down 16%, indicating buyers are still sitting on the fence. But, with interest rates down to historically low levels, that may be a mistake. Interest rates are expected to increase over the coming months, meaning you’ll be able to afford less of a home. A 1% difference in interest could mean several hundred dollars in your monthly payment. Buying now could mean the difference of affording your ideal neighborhood to settling for an inferior neighborhood when prices and interest rates increase.
Number of Under Contract Down 3%
Another indicator that buyers are still on the fence, the number of under contract single family homes in Austin is down 3% in year over year numbers.
15% Fewer Homes on the Market
15% fewer homes were on the market in March 2011 as compared to March of 2010. The spike in home sales in January took a lot of homes off the market and sellers have not replaced this inventory to meet the demand, causing fewer listings.
Newly Listed Homes Down 16%
Sellers also seem to be holding onto their homes in anticipation of where the market will go. Is this a good strategy? Probably not if you need to sell your current home to buy your new home. Interest rates and prices are down, which is the winning combination if you’re a buyer. What you sacrifice on the selling end will equal itself for what you’ll gain on the buying end. Plus, with less inventory, you’ll be competing with fewer properties.
Number of Expired Properties Down 9%
With 15% fewer homes for sale, a 9% drop in the number of expired listings is to be expected.
Average Days on Market Up 18%
It is taking longer for sellers to sell their homes, with an 18% increase in year over year average days on market numbers. But, with median home prices staying constant, it doesn’t seem sellers are sacrificing too much on price. Its just taking longer than it did a year ago to sell which is to be expected with fewer buyers in the market and fewer transactions.
Source: Clarus Market Metrics, ACTRIS Sold Data
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 its time to sell. With inventory at its lowest levels we’ve seen in the last 2+ years, a home that’s priced right should have no problem finding a buyer. Let me again stress, IF its priced right. Buyers aren’t throwing money at sellers, but they are buying.
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 and Seller Resources for more tips.
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