Real Estate Information Archive

This summer has been a GREAT real estate market in Austin, TX!  Supported by the fact that home sales improved over 2010 in virtually every category.

Nearly every area of Austin, nearly every type of housing, nearly every price range saw improved home sales over last year.

It is often national financial factors that cause improvement, and Austin home buyers recognize interest rates below 4% may be very temporary, while knowing that Austin's soft real estate prices are temporary as well.

The combination of low mortgage rates and low home prices puts more buyers in the market as first time buyers, but has also created something many buyers never expected - the ability to buy a home prevously out of reach.

Having just closed a Cedar Park home where the payment was approximately $361 less than the buyer expected to pay for a home like this, its easy to see that a few years from now many home buyers will look back and feel very fortunate that they were able to take advantage of this time in Austin real estate history, while many more buyers will wish they had!

Tell anyone you know... timing may be be this good!

Make it a Powerful Day!

According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®, 1,690 single-family homes were sold in the Austin area in April 2011, 16 percent fewer than the same month of the prior year when the federal homebuyer tax credit expired. At the same time, the median price for Austin area homes was $196,400, three percent more than April 2010.

 Each month of 2011 has been compared to 2010, when the  homebuyer tax credits were in place, a slightly unfair comparison of course. That’s particularly true for this month, since the tax credit  expired on April 30, 2010, creating a surge in demand that month.

Here's some good news for 2011... in April, homes spent an average of 88 days on the market, 28 percent longer than April 2010, but the shortest “days on market” figure in the Austin area since September 2010.

Additionally in April 2011, the number of homes that were placed for sale fell 25 percent, and the number of homes actively on the market was down 10 percent.  The most telling stat though are pending sales, which were down 27 percent compared to April 2010.

Sixteen percent fewer homes were sold in April 2011 than April 2010... not a bad stat since we were without the benefit of a tax credit.

IN addition, prices for Austin area homes continue to rise in many areas, and overall, appreciation is slight, but its a whole lot better than none at all!

Here is a summary:

According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®, 1,112 single-family homes were sold in the Austin area in February 2011, a figure that is statistically unchanged from February 2010.

In the same time period, the median price for single-family homes in Austin was $193,000, up two percent from February 2010, and homes spent an average of 98 days on the market, 27 percent longer than February 2010. In addition, new listings were down 24 percent in February 2011 compared to February 2010 and active listings were down eight percent.

The fact that all fewer homes were on or entering the market in February is a good sign for home sellers because it means that buyers may encounter more competition for properties heading into the summer selling season, and that positive for home prices.

At the same time, increases in the days on market for Austin homes means sellers should prepare to be patient if they want to earn full value for their properties... nearly 100 days is the average, 27% longer than this time last year.

In February 2011, pending sales for single-family homes were down 11 percent when compared to February 2010.

Additionally, leasing activity in the Austin area increased in February with 1,117 properties leased, up five percent from the same month last year. The median lease price in February 2011 was $1,200, nine percent more than in February 2010.

February 2011 Statistics

• $271,752,784 – Total dollar volume of single-family properties sold, statistically unchanged from February 2010.
• $193,000 – Median price for single-family homes, two percent more than February 2010.
• 1,112 – Single-family homes sold, statistically unchanged from February 2010.
• 98 – Days on market, 27 percent longer than February 2010.
• 2,335 – New single-family home listings on the market, 24 percent less than February 2010.
• 8,605 – Active single-family home listings on the market, eight percent less than February 2010.
• 1,543 – Pending sales for single-family homes, 11 percent less than February 2010.
  
  

Homes in Austin, Texas are selling a a better pace than most places in the U.S., and for that we are thankful. We have certainly been affected by Short Sales and Foreclosures in Austin... there is no question that home sellers are feeling the sting of the recession and home buyers are taking advantage of a good home buying market.

Many of my sellers are making the lower home prices they are forced to accept a little less painful by taking advantage of the current market in order to lessen their losses.  What do I mean? Well let's look at a few alternatives:

First, some of the home sellers I have represented have chosen to keep thier current home as a rental because the current value of that home is less than they are willing to, or can actually accept. Also, because the Austin rent market is very strong right now, the chances of renting the home quickly and at top dollar is better than ever.  Think about it, when mortgage are difficult to obtain, what happens, well rental homes are in more demand.

That home seller can then purchase a home at today's deflated values, wait until the market recovers, and then sell the rental at the height of the market... the good old "Buy low, Sell High" philosophy actually works!

Second, if renting the current home is not a good alternative, then selling at a lower price than they may have hoped for can be compensated for by buying another home at today's low interest rates and low prices. 

Because Austin home values in every price range has been harshly affected by recessionary factors including unemployment, foreclosures and short sales, a home seller who accepts less than they may have hoped can then buy a home at below market values as well.

Depsite the fact that it is not a great time to "sell" there are compensating factors that make it an acceptable time to sell a home in the Austin real estate market.

Make it a Powerful Day!

Let's get back to the BIG question... is this a good time to sell a home? The answer is yes and no... let's address the "Yes" first.

Statistically, more Austin homes sell in the 2nd quarter of the year than any other, and that includes suburbs and home sales in Round Rock, Geogetown, Cedar Park and other suburbs.

We have seen increased online activity since Jan. 1 compared to 2009 and 2010, and in addition have shown more homes since Jan. 1 than in 2009 or 2010.  The next and most important fact is that we have also sold more homes since Jan. 1 than in either of the last two years.

These are just our company statistics, but if we can interpret this as a trend based on 2 months data it follows that the 2nd quarter will be even better than the first, as is the case for Austin home sales every single year.

The areas that are peforming best at this time are dramatically different in nearly every way... SWW (Far Southwest) is the #1 performing area in Austin real estate and its avg price is over $290k, while MLS area N, the #2 area is directly North and has an average price of $190k, and area 3E, located in NE Austin has an avg price of about $115.

The more pronounced statistic is that 6 of the top 10 areas in the Austin MLS are actualy suburban locations... this is unusual in that these areas nearly always lag behind Austin proper. Though not in the top 5, the MLS area in West Round Rock came in at #6, remaining in the top ranks of the Austin MLS for several months, after years of being a much lower ranked area in terms of home sales.

Perennial high ranked areas located in central Austin rank farther down on the list of Austin MLS areas than I have ever seen... 3 areas that are usually in the top 10, located along Mopac, north of UT, just south of the river, are now found starting at a ranking #32!!

What does it mean?  This points to several market factors:

1 - More "Values", such as foreclosures and short sales are found in suburban neighborhoods.

2 - The high price per square foot asked in close-in locations are in less demand by consumers than in the past.

3 - Higher priced areas have been hit harder by the economy than more affordable suburban areas, thus sales have decreased.

This is a good time to sell, expecially for home owners located in areas just outside the central Austin area, and for those located in suburban areas.

Make It A Powerful Day!

According to Multiple Listing Service statsistics, sales of single-family homes in the Austin area were six percent higher in December 2010 than December 2009 with 1,442 homes sold.  That is GREAT news, putting a halt to the dramatic declines we have seen each of the past several months!

In the same time period, the median price in Austin was $191,760, approximately the same as December 2009, meaning that Austin home prices are still maintaining a reasonable level, while other markets across the country are still falling. 

Homes spent an average of 98 days on the market, 13 percent longer than December 2009, and though this is a negative change, we are ok with homes staying on the market a liitle longer as long as more are selling and they are selling at prices similar to a year ago!

In December 2010, pending sales were up three percent compared to December 2009, indicating stronger demand leading into January than this time last year.

Hefre is the summary and a graph of the December, 2010 Austin real estate statisitcs:

• $191,760 – Median price for single-family homes, unchanged from December 2009
• 1,442 – Single-family homes sold, six percent more than December 2009
• 98 – Days on market, 13 percent longer than December 2009
• 8,182 – Active single-family home listings on the market, one percent more than December 2009
• 1,102 – Pending sales for single-family homes, three percent more than December 2009

It does go back to the basics, but online activity is where it all starts.  The number of people online this week looking at homes in Austin, Round Rock, Georgetown, Cedar Park, Leander, Pflugerville and other Austin suburbs is the highest it has been in over 10 weeks.

I know, activity in November is not all that impressive, but the number of Austin area home buyers looking at homes online fell steadily through the end of the year, as did home sales.

Since the second week in January, we have seen the number of home buyers online increasing, and the number of buyers looking at homes is steadily increasing as well.  Those with homes for sale are realizing this, as home buyers are looking at their homes for the first time in many weeks.

Its not a trend yet, but with interest rates moving up, buyers are responding, as is typical for buyers when mortgage rates look to be increasing. Our advice, unlike most years is to beat the crowd... more homes are placed on the amrket in April and May than any pother tiome of the year.  This means of course, there will be more competition than any other time of year.

To avoid that competition and possibly entice some quality interest rate conscious buyers, going on the market in February or March might we worth considering this year. And no I do not say this every year, as a matter of fact, this is the first time I have made that suggestion other than to take advantage of the tax credit in 2010.

Make it a Powerful Day!

Well the economic indicators and the prognosticators and the real estate experts are all without answers.  Sure they'll give you an answer, but there is no substance to it.

What question are we looking for an answer to? How's the market looking for 2011? We get resonses regarding the employment situation in Austin and central Texas and the year to date sales compared to 2009 and other statistics that have little to do with the question.

Though not infallible, the number of home owners who are unable to make mortgage payments and are lookiung to a Short Sale to get out of their current home addresses several siatuations at once... Employment in our area may be stronger than other areas, but when home owners are unable to meet their mortgage payments, employment situations are the most common reason.

If they cannot make payments and need to sell, but cannot sell their home due to real estate values, that speaks to the real estate market and the lack of appreciation in home values.

When home buyers are looking to purchase homes in the market, Short Sales are an appealing alternative and the number of these homes available has an impact on the choices buyers make.

So, the bottom line is this... there are more Short Sales available in today's market than there were just 2 months ago.  In Round Rock for example, Short Sales consist of 1 of every 11 homes for sale, compared to 1 in 13 the first week in November.  This may not seem like a substantial change, but a 12% increase in just 2 months is something we cannot ignore.

More people are in financial straits than last year and 2011 will be a year when these homes must be sold to make way for market recovery.

Make It A Powerful Day! 

One factor that Austin area home owners must take under consideration when selling their home is this: "How many people will actually see my home on the Internet?"

Most real estate agents cannot tell you this... most will throw statistics at you that have little bearing on how many people saw your home... a common response is "We have over 1,000 people a day through our web site." Great, but how many people see YOUR HOME online?

Another common response is "We place your home on Realtor.com and Zillow and 35 other web sites." Great, but how many people see YOUR HOME online? (By the way, every home placed on the Austin Multiple Listing Service is automatically placed on those same 35 web sites)

Another common response is "Our web site comes up on the first page of Google for several key phrases such as Austin Homes for sale." Great, that is very impressive but how many people see YOUR HOME online?

The internet is the absolute, positive, #1 place where home buyers will see your home, or NOT.  Indirect responses to a legitimate question should be less than acceptable. Especially when the tools and information are readily available to give you the response to that question. 

You see, no matter how many sites your Austin home is placed on, no matter how many people come through their company web site, no matter where their site shows up on Google or Bing, the fact of the matter is the more people who see YOUR HOME the better.

Strategies exist to accomplish more views for a home even if it exists on the very same web sites.  One agent can accomplish 3 times as many views for your home in Round Rock as another, while having your home on the very same web sites!

So don't settle for indirect responses to important questions... get answers to the questions that mean something to you and the successful sale of your home!

Market performance for various property types will differ dramatically based on the current market conditions.  I think most real estate professionals know that condos tend to suffer a little more than single family housing in a market downturn and our current market is no exception. The decrease in sales of condos is more pronounced than that of single family homes in Austin.

The 1 Acre Plus market tends to outperform the typical single family market though, and in every downturn in the past homes on an acre or more have faired well.

Austin's Real Estate market cycle has been the only exception I have seen, as homes on acreage have actually increased in inventory more than the overall market, and deeper price reductions have benn necessary to accomplish sales of these homes.

Just in the last few months and even weeks, we are seeing increased interest in homes on an acre or more.  Have prices improved? Well, no, but with improved sales comes improved prices.  We saw more than twice the number of contracts and and nearly twice the showings on our homes this past week alone!

From Hutto to Libery Hill and Round Rock to Georgetown, homes all over our market are seeing more action, bu especially homes on an acre or more, as these homes were looked at more online and in person than in any 1 week period in over 4 months!

A week, or even a few months does not make a trend, but it is certainly shows that this market is viable.

Another important note is that these buyers are well qualified and for the most part, even those who did not purchase one of our listings, did buy other homes, showing that buyers who are looking at homes right now are serious about buying a home.

Based on activity in November, I predict December to be a very solid sales month for homes in the Austin area!