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Market News and Trends

Austin/Central Texas Market Status — Existing Homes


Several days ago, the National Association of Realtors® reported the latest data about residential resales:

Existing-Home Sales Slow in June 2010 but Remain Above Year-Ago Levels

Typically, the Austin/Central Texas market is behaving differently.  In this case, sales of existing homes in June 2010 were down compared to June 2009, even with the  effect of the recently expired tax incentives for homebuyers.  The good news is that last year was strong in Texas, relative to the news-making markets in California, Arizona, Nevada, Florida, and Michigan:

Austin Resale Homes Sold June 2008 - June 2010
Of course, there is real reason for concern about the next three months in particular:  Note the fall-off in sales last December, January, and February, after the expiration  of the previous homebuyer tax credits.

Other market behavior here is reason for confidence in the performance of our market over the next year:

Austin Resale Supply and Demand June 2008 - June 2010
As you can see, listing inventory has grown in recent months — a normal seasonal trend, maybe exaggerated this year by pent-up desire to sell by homeowners frustrated  over the past couple of years.  The magnitude of that change is fairly benign at just 9% compared to June 2008.  At the same time, buyer demand is down by 9% over two  years, but June 2010 sales were still 20% higher than October 2009, when purchases driven by last year’s tax credits peaked — not bad for a market in which seasonal  demand has been significantly distorted by external incentives.

Look at what that demand did to the median sale price here in June 2010:

Austin Median Resale Home Prices June 2008 - June 2010

The ramp in 2nd quarter 2010 looks huge, but note that the June 2010 median price was only up 5% compared to June 2008, and just 3.7% from June 2009.  That pace of  growth is entirely reasonable and sustainable.  Will we see some softness over the next few months?  I wouldn’t be at all surprised, but look at one last market statistic and  you’ll see continuing strength in our market:

Austin Resale Homes Avg DOM June 2008 - June 2010
The average resale home that closed in June 2010 was on the market for just 70 days!  The five states that have so heavily influenced national news about real estate in the  last two years would undoubtedly envy that market velocity.  Yes, it is up from 51 days in June 2008, but the average over 24 months was 66 days on market.

That’s  not a market where houses are “flying off the shelf,” but it is not one where inventory sits for months and months, either.  With about 7 months’ supply available, the  Austin/Central Texas market remains reasonably balanced :  buyers have plenty of choices, but a well-prepared and well-priced home will sell in a reasonable time.  That’s  the way this is supposed to work.

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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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