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Market News and Trends

Austin market stays strong


As always, I study market conditions in Austin and Central Texas real estate, and I continue to see significant contrasts between our area and conditions elsewhere around the United States:

NationalOn Tuesday, the National Association of Realtors® reported that sales of existing homes were down 2.2% in May compared to April (May Shows a Continued Strong Pace for Existing-Home Sales). They indicated that sales last month would have been weaker without tax incentives for homebuyers.

Austin:  In the Austin metro area sales of existing homes were UP 1% last month, and the median sale price was up 2.5% from April. That makes four consecutive months in which both unit sales and median prices increased month-to-month.

Austin Existing Home Sales

 NationalToday, the U.S. Commerce Department reported that sales of new homes in May were down 33% from April (Sales of new homes drop by record amount to record low). 

AustinNew home sales were DOWN in the Austin metro area, too, but by only 11% — just 1/3 the decline experienced nationally. I heard a radio report yesterday (that I have not yet been able to validate in print) that builders in our area are concerned about having enough lots available to support forecasted demand in the next year.

Now, isn’t that a good problem to have in this economic climate?

Austin New Home Sales

 In total, residential sales in the Austin area were essentially flat from April to May (up 13 units).
The median sale price was 7.4% higher in May than it was in January 2010, and was down 1% from May 2009.

National:  The NAR report also noted that 31% of May sales were foreclosures and short sales.

Austin:  In Austin, 14% of homes sold last month were foreclosures and short sales — less than half the national total.

So, is everything coming up roses in Austin real estate? Are we enjoying another 2006? Certainly not, but Central Texas remains one of the strongest real estate markets in the United States.  Compare these charts to everything you read and hear about the national real estate market:

Austin Residential Supply and DemandAustin Average Days On Market

Last month, the average home sold in Austin was on the market for just 73 days! Many (maybe most) U.S. metro areas envy that pace of activity. And it’s not because  homeowners are giving up and giving their houses away — median prices have been rising! In addition, based on sales volume last month, our current listing inventory represents just seven months’ supply.   Most analysts consider 6 to 6 1/2 months’ inventory to be a “balanced” market, so froma supply-and-demand perspective we’re in great shape.

Aside from being a great place to live, the Austin area continues to buck the nation’s economic trends, too. Please stay informed, and keep up with national news, but  check back here too, and I’ll keep reporting on the local market.

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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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