May Austin Real Estate Market Report Summary
The Austin real estate market continues to boom, and in fact, is hitting record sales. Between January and the end of April, more homes sold in 2016 than any time in Austin history. 2016 even surpassed the prior two highest years of 2006 and 2007. For homes sales by zip code and price band, take a look at our latest real estate market report.
4,764 homes are currently pending, the highest number of pendings in Austin history for any month. Inventory is higher this year and that is helping boost those pending numbers. In fact, if we had more inventory, we know we’d have more home sales as we are still seeing multiple buyers compete for our listings and other buyers competing with our buyers for homes. There are currently more homes for sale than the previous three years. There are 13.88% more homes for sale now than last year at this time.
Austin has two types of markets though: Under $1,000,000 it is a Seller’s Market, where demand outpaces the number of homes for sale. Over $1,000,000 it is an “Extreme Buyer’s Market.”
- 47% of all Austin homes listed for sale are priced under $400,000. At all price ranges under $400,000 the market is an “Extreme Seller’s Market” resulting in High Appreciation. There are now only 119 homes listed under $100,000 in the entire Austin area, representing 2% of all homes listed.
- 40% of all Austin homes listed for sale are priced between $400,000 and $1,000,000. At all price ranges in this price band, the market is defined as a “Normal Seller’s Market”, with Moderate Appreciation.
- 13% of the Austin homes listed for sale are priced over $1,000,000. In every price band over $1,000,000 thee are so few sales compared to inventory that it is defined as an “Extreme Sellers Market” with High Depreciation.
Interests rates remain at record lows. Only three times in history have rates been any lower. Conventional rates are running around 3.6% and qualifying is easier this year than last year because some of the lending guidelines have been relaxed.
Of the homes that sold in April, the average number of days they had been on the market was 44 days. This is 13.73% LESS than a year ago.
Historically during May and June, the number of homes sold each month increases, pending sales start leveling off, the total number of homes for sale increases, and the average days a home is on the market before being sold decreases.
Historically starting in July or August, the number of homes sold each month, the number of pending sales, and the number of homes for sale begins to decline. Days on the market for homes sold begin to increase.
Affordability in Austin Five years ago in 2011, 41% of all home for sale were priced under $200,000. Today only 10% of all home for sale are priced under $200,000. And 5 years ago there were more choices for buyers with 3931 homes to choose from. Today there are only 525 listed for sale under $200,000.
It is still a great time to buy or sell a home in Austin, Texas! We would love to assist you with all of your real estate needs.
Posted by Laura Duggan, West Austin Properties, 3312 River Road, Austin, Texas 78703, 512-750-2425.