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Market News and Trends

What price range is selling?


Ours is a numbers-intensive business, and I find that discussing market statistics with my clients gives them a much better basis for making informed decisions, whether they are considering buying or selling.  I have written previously about my Austin Market Dashboard, which I keep updated every month on my website.  Until now that page has included two sets of graphs that distill supply and demand and market pricing so that trends are visible.

Now I have added a table that I think helps to translate a statistical measure that our industry uses routinely into something that may be more meaningful to consumers:  the Sales Price Distribution for 1998 through 2009. 

The top half of that page shows what percentage of each year’s sales were in the price ranges shown.  I have highlighted the price bands that represented 10% or more of each year’s total sales.

The bottom half of the sales distribution chart just accumulates the percentages from the top half, and the bold line across the table and answers the question, “If a homebuyer wanted to look at 1/2 of all the homes available, how high would the price range have to be?”  Our industry talks all the time about “median price” as if everybody understands what we’re talking about.  This chart puts that conversation in layman’s terms. 

A couple of comments:

  • In 2000, shopping up to the high $150,000s in the Austin metro area would have covered a little more than 50% of all residential listings.  Ten years later, in 2009, that bar had moved to almost $200,000.
  • Even during the housing downturn, the sales price distribution in the Austin area is almost unchanged in the past three years.  The same is true for much of Central Texas, even beyond Austin’s sprawling MSA.

I have said and written frequently that Austin was shielded from many of the worst effects of the recession, but not entirely.  Certainly demand has declined — the number of homes sold in 2009 was down 30% from the peak in 2006.  Even with sales soft, however, Austin area prices have held their own, and continued to increase slowly in some important market segments.

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About Bill Morris, Realtor

More than thirty years of business experience (high tech, client service, business organization and start-up, including many years in real estate) tell me that service is the key to success and I look forward to serving you. I represent both buyers and sellers throughout the Austin metropolitan area, which means first-hand market knowledge is brought to bear on serving your needs: -- Seller Representation is a comprehensive process that begins with thorough market analysis and consultation, continues with properly staging the home to achieve the highest price possible in a reasonable time on market, a complete program of marketing and promotion, ongoing updates and communication, closing coordination, and follow-up throughout (and after) the sale. -- Buyer Representation is also full service: shopping, previewing, price and market consultation, contracting, negotiating, coordination of inspections, appraisals, repairs, and closing details, and follow-up beyond the closing of your purchase to ensure your lasting satisfaction. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That's why I constantly research the market and property values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.

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