A Strong Austin Real Estate Market Continues
April 21, 2017 by Laura Duggan · Leave a Comment
The Austin Market remains STRONG OVERALL.
Last month, in March, 2,418 homes sold in the Austin area. This is 1% less than 2016. To understand the overall picture, you need to know that for 2016 and 2017 the number of March sales was significantly higher than the previous 7 years. Demand overall remains strong, however, it varies by Price Bands.
There are 13.21% more homes for sale than last year at this time providing more opportunity for buyers. This is good news for buyers who’ve been waiting to dive in and buy a home, especially with the sharp increase in rental rates over the last few years. In many cases, it is less expensive to own than to rent.
The Median home price sold during March 2017 was $296,000, an increase of 5.1% in one year. The prior year the Median price increased 6.7%. Home values have increased nearly 12% in 2 years.
Demand and supply are impacting sellers depending on the Price Band. Homes listed under $400,000 are in an Extreme Seller’s Market and values are increasing. Homes over $2 million are in an Extreme Buyer’s Market and prices are overall stagnant or declining slightly.
In this high demand market, some sellers have a good idea of the value of their homes and some are overestimating their home’s value. For instance:
• Homes that sold in March under $300,000 were on average, originally priced within 5% of sold price with few price reductions. Homes in this price range are more easily matched to current sales in the neighborhood so value can be more accurately determined.
• Homes priced between $700,000- $800,000 and also homes priced between $1,000,000 -$2,000,000 had the highest percentage of price reductions. Probably indicating the homes were initially priced higher that the market was willing to pay.
• Homes overpriced by 10% or more remain on the market longer, generally require only cash offers because these homes will not appraise at the value requested and usually sell for LESS than market value after price reductions.
Every home sale and purchase is influenced in unique ways depending upon the conditions of the home and the supply and demand.
Take a look at our latest market report to see the all of the statistics by area and price band.
Submitted by Laura Duggan, Broker, West Austin Properties, 512-750-2425, laura@westaustin.com
