Austin Real Estate Market Update: April 2013

Austin Real Estate Market Update: April 2013

22nd Straight Month of Sales Volume Increases 

Real estate market reports lag by about 30 days.  Therefore, in April, we are furnished with the sale and lease data from March.  March 2013 marked the highest level of home sales in Austin for any similar time period since 2007.  In general, the Austin Housing Market is enjoying its best year (to date) since 2007, which is largely considered the last banner year for residential real estate sales.

According to the recently released Austin Housing Market Report, 2,166 single-family homes were sold in the Austin area in March 2013, which is 16 percent more than March 2012, 35 percent more than March 2011 and 22 percent more than March 2010. On average, homes spent 64 days on the market, which is a decrease of 20 days from one year prior.

In March 2013, the median price for Austin-area homes increased to $220,000, which is 10 percent more than the same month in 2012. The last and only other time we peaked at $220,000 was in July 2010.  Additionally, the market featured 2.6 months of inventory in March 2013, which is 1.8 months less than March 2012.

Significant Austin Real Estate Metrics: 

5,218 – active single-family home listings, 28 percent fewer than March 2012.

2,754 – pending sales for single-family homes, 18 percent more than March 2012

97.4 – percentage of list price garnered at sale

30.4 – percent fewer homes for sale compared to March 2012

Townhouses & Condominiums
The volume of townhouses and condominiums (condos) purchased in the Austin area in March 2013 was 275, which is 27 percent more than March 2012. In the same time period, the median price for condos was $181,750, which is three percent less than the same month of the prior year. When compared to March 2012, these properties spent one percent less time on the market, or an average of 87 days.

Leasing
In March 2013, a total of 1,205 properties were leased in Austin, which is nine percent more than March 2012. The median price for Austin-area leases was $1,380, which is six percent more than the same month of the prior year.

For a full rundown of Austin Real Estate Statistics, visit: www.EyeonAustinRealEstate.com

Homes for Sale in Austin (Supply vs. Demand)

Homes for Sale in Austin (Supply vs. Demand)

60% fewer Homes Available in Austin Compared to 2009

March is historically the month of the year when the local real estate market awakens from its winter slumber.  Buyers start to get the itch to strike a deal and homeowners prepare to put their homes on the market.  As a result, we typically see a bump in housing inventory around March each year.

It seems in recent years that the market upswing is beginning earlier and earlier in Austin.  This year it basically started at the flip of the calendar.  The first quarter of 2013 was about as crazy as any market in recent (and not so recent) history.

Taking all of that into consideration, I thought it might be interesting to take a look at the months of available inventory in March for each of the past 5 years as a means to depict where the market is headed.  Months of available inventory is defined as the total number of available properties for sale divided by the average number of sales for the twelve months prior.  A market with 6-6.5 months of available inventory is considered a market that is in equilibrium between seller supply and buyer demand.

Online Graphing

March Heat Map: Median Price Changes (2012 vs. 2013)

March Heat Map: Number of Sales Comparison (2012 vs. 2013)

The numbers in the graph above represent the entire Austin/Central Texas MLS area which covers Travis, Williamson, Hays, Caldwell and Bastrop counties.  Quite frankly, some of those sub-markets in the outlying counties are not in high demand which in turn inflates the overall inventory picture.  In other words, in areas where the bulk of the home buyers are searching , the available inventory is actually much lower – in fact, comically low in some spots.  Here is a closer look at some market niches and price points.

Austin Metro Areas (within 30 mins of downtown)
Inner Core Neighborhoods: 1.5 months
Next Layer Neighborhoods: 1.1 months
Immediate Suburbs of Austin: 1.5 months

Austin Area School Districts
Eanes ISD: 3.8 months
Round Rock ISD: 1.3 months
Leander ISD: 1.8 months
Austin ISD: 1.1 months
Lake Travis ISD: 5.7 months

Specific Price Ranges
Under $250K: 1.7 months
$250-500K: 2.9 months
$500-750K: 5.1 months
$750K-1M: 7.6 months
$1M+: 15 months

What do these numbers tell us?  Well, that largely depends on which side of the fence you find yourself on.  If you are a home seller in one of the higher demand areas listed above (see close-in neighborhood or lower price range), you are poised to capitalize on a market far stronger than any we’ve seen in the past 5 years.  In fact, in some areas it might be the first time that you’ll actually see a net positive sale.  If you are curious about what your house might sell for in today’s market conditions – we’d like opportunity to provide a complementary home market valuation.

If you are buyer looking in the same area described above, you better get your game face on because the competition is going to be steep.  If you want to be seen as a serious player, you are going to have to bring a strong offer, even possibly above the asking price.  If you are ready to get serious about your Austin home search, you’ll want to take advantage of our members only MLS access where you can receive daily listing alerts via email.

If you are a buyer who needs to sell your house first, then you better have a very good idea about where you plan to end up because your could sell very quickly and it might be a challenge to find your landing spot if you haven’t been proactive.  Find out the secrets of getting the timing right when buying and selling a home at the same time.

The bottom line is that each market niche and price point brings its own unique opportunities and challenges.  It’s important that you align yourself with a real estate agent and firm that has a strong track record of delivering great service and results for clients.  We have a friendly associate that can assist with just about any Austin-area real estate opportunity.  Whatever stage of life you find yourself in, we’d love the opportunity to help you get from where you are to where you want to be.

Featured Listing: 2702 Melba Pass (Cedar Park)

MLS#5849117
One Story
4 Bedrooms
2 Bathrooms
2 Living Areas
2196 SF (per tax)
Covered Porch
Storage Building with Electricity
Recent Interior Updates
Full Appliance Package

Link to Virtual Tour

Cedar Park, TX:  This charming white stone one story home features an open floor plan and sits on a nice lot with mature trees.  Inside, the kitchen opens to the main living area giving it a great sense of space.  The breakfast area opens to a large bay window with views of the backyard.  The sizable master suite features a bathroom with double vanity and a separate walk in shower & closet.  Behind the home is a large covered and screened in patio perfect for entertaining.  Additionally there is an exterior building with electricity, perfect for added storage or a workshop.  The interior of the home has been recently refreshed with  new carpet in the bedrooms and living room, new tile in the kitchen and master bathroom and interior paint.  On the exterior, trim and fascia have been repaired and repainted and the roof shingles were replaced within the past 5 years.  This house is within walking distance to the community park and neighborhood elementary school.  Less than two miles to both Cedar Park Middle School and Cedar Park High School.  Great space, great flexibility, great location.

Offered at $220,000 – visit the listing page for more details on 2702 Melba Pass


Better Austin Living Newsletter: March 2013

Better Austin Living Newsletter: March 2013

The most recent edition of the Better Austin Living Newsletter went out recently.  You can read an electronic copy here

Articles in this issue include: 11 Ways to Increase Productivity: 4 Items You Should Leave Home Without, Why Too Little Sleep Can Equal Weight Gain, Strategies for Sticking to Your New Years Resolutions, How to Figure Out Whether to Stay Home or Go to Work When Sick, and From My Nightstand Article.

As always, if you do not receive a copy of the Better Austin Living Newsletter in the mail and you wish to be included in the monthly mailing, fill out the brief form at the bottom of this page.

this newsletter is a fantastic and simple way to introduce me to your friends and family. I greatly appreciate your referrals.  If you don’t have the print (mailed) version handy, fear not, you can always pass along the electronic version (pdf) with the click of a button. I’m sure your contacts will enjoy reading the articles and get as much out of it as you do. Thanks for not keeping me a secret.

Austin’s Caught Home Buying Fever

Austin’s Caught Home Buying Fever

I was in a conversation with a colleague of mine the other day that has been in the mortgage business for almost 25 years and she said to me, “Ryan, I’ve seen some hot markets but I’ve never seen anything like this.”

That’s what I’ve been telling people too.  I can honestly say that this is the craziest 2-3 month period I’ve seen in the Austin housing market since I’ve been licensed as a Realtor.

Looking back and measuring forward, I suppose it really started about September of last year.  In the more median price ranges, I started to see multiple offers become the norm rather than the exception and houses selling above the asking price was not uncommon.  At that time, I figured it simply had to do with supply and demand in the more affordable areas being a little out of whack for the time of year.  I was not prepared for what has transpired over the past couple months and I don’t think that anyone could have predicted it.

I mentioned in my last Real Estate Newsletter that the Austin housing market has seen 19 straight months of year over year sales volume increases.  Sales rose close to 19 percent overall in 2012 and the median price was up about 6 percent as well.  But the most telling number was and continues to be the lack of available housing inventory to satisfy what appears to be an intense and on going demand from a formidable buyer pool.

Because real estate prices rely upon historical data, meaning today’s closings were listed a minimum of 1-2 months ago and priced using data that was derived from sales in the previous 3-6 months, its always very difficult to project at what point things are going to boom (or bust for that matter).

I’ve been working with a handful of buyers looking in the “inner loop neighborhoods” of Austin.  My clients’ house hunting efforts which started at a more leisurely pace just after the New Year have been throttled up to warp speed.  We’ve watched a number of attractive homes sell from “coming soon” signs in the front yard and others that actually make it to the market have multiple offers by sundown on the first day of listing.  That is not an exaggeration.  It’s equal parts frustrating, maddening and intriguing.

I’m also seeing sellers start to list ahead of the “now” pricing curve in anticipation of the next round of closings in the area bumping up appraisal prices.  I’m really interested to see where some of these houses that I thought were “overpriced” at the time ultimately end up selling at.

On more than one occasion, I’ve had to rationalize with a buyer-client of mine as to why it’s not a prudent decision to overbid (to win in multiple offer situations) on a house that is already 15K over the recent comparable sale prices.  Bottom line is that said clients could and probably would find themselves in a situation 2-3 weeks down the line where they’ve spent money on property inspections, paid for a loan appraisal (out of pocket) and been left with a value that is still $10,000 light.  Guess who’s going to make up that difference?  Chances are, not the seller unless they are hard pressed to get out of the house quickly.

In talking with mortgage lenders, these unsubstantiated contract prices are happening a lot right now.  Until the market sees a couple rounds of new closings at the higher competitive prices, it’s going to continue to be an issue.  And that’s why I feel strongly that buyers right now need to seek counsel from both an informed buyer’s agent and a more than competent lender so that they make the best decision with a long term perspective.  We do not want to see what happened in 2006-2007 transpire all over again.

Yet with every story, there is always the other side.  For home sellers right now, it’s an intriguing opportunity to tap into an overzealous buyer pool.  Selling is not rocket science, particularly in a market as enticing as this one.  However, like anything else worth doing, its worth doing the right way.  Here is a glimpse into our proven home marketing systems that help owners sell their homes more strategically and profitably.