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Market News and Trends

Home prices are up in Austin, but …


I wrote recently (Case-Shiller and Market Bubbles) about home price trends in the Austin area and other cities around the country, and promised more information about Austin’s residential market environment.  This post confirms that prices indeed are up here, a predictable result of high demand and limited supply.  It is important to note that changes in average and median prices may or may not reflect actual appreciation of any particular property, but we have certainly seen a shift in demand toward higher priced homes:

Austin Metro Price Distribution 2004-2014

For all of the past ten years, the $200,000 to $249,000 price range has accounted for more than 10% of sales in the Austin metropolitan area.  Growth in that market segment paused during the recent recession, but gained steam again in 2013.  You can see similar growth between $250,000 and $400,000, and note that the more-than-$500,000 segment represented 11.2% of all sales — nearly triple its share in 2004!

It is still possible to buy less expensive homes, but with the rapid growth in population and employment, it is more difficult and competitive, and most often in the suburbs.  Still, through September 2014 more than 1/3 of all homes sold in the metro area were priced under $200,000:

Austin Metro Cumulative Price Distribution 2004-2014

The flip side of that percentage is also important.  Ten years ago, 53.5% of sales were below $160,000.  This year you had to shop up to $250,000 to see the same proportion of the market.

Without doubt, homes are getting more expensive, but drawing conclusions about whether they’re “overpriced” requires more information.  More on that soon ….

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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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  1. Pingback: Another “over-valued” report | Bill Morris on Austin Real Estate - December 19, 2014

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