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Market News and Trends

Austin-Area Market Conditions — Dramatic Variations


Yesterday I wrote about the Austin/Central Texas markets for new homes and for existing homes:

New Home Sales — U.S. and Austin/Central Texas

Austin/Central Texas Market Status — Existing Homes

I commented about the general health of the Austin Metro real estate market, with an average of just 70 days on the market.

That average statistic hides huge variation, and Days On Market is just one measure of market velocity:

Austin-area Market Velocity 07-28-10

Note that in the overall market that averages 70 days on market, we have residential market segments ranging from 40 to 98 days on market — 145% variation!

When lot/land listings are added, the variation is even more extreme:   from 31 days to 219 days on market.

As an even more dramatic depiction of the variations of market health in this small sample of  segments within the Austin/Central Texas real estate market, consider the  supply/demand picture.  At one end of the market, we have an important part of the Southwest Austin market (Area SWW) where existing inventory represents a 3.5 month supply — decidedly a seller’s market.

At the other extreme, the market for 1/2 to 1 acre lots along the north shore of Lake Travis but without lake frontage, current listing inventory will last almost 8 years based on current demand!

As I have pointed out before it is interesting, and sometimes even instructive, to compare market averages nationally and within regions, states, and metro areas.  However, averages always obscure important details.

The data in the table above is a very small sample, and just one way to slice the Austin-area market.  There are probably even more extreme examples of fast-moving and horribly over-supplied market segments, but I have included some where I have been working lately.  The  important point is:  When you read about the health of a local or regional real estate market, do not assume that all properties compete in the same market conditions.  This kind of market knowledge and market analysis is an important reason — whether you’re buying or selling — to have an experienced real estate  professional representing your interests in any property transaction.

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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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