You're reading...
Market News and Trends

Austin Market Price Distribution


I comment frequently about home prices in the Austin area (most recently in Market Dashboard – 2017 recap), but it has been a while since I shared the overall distribution of residential sale prices across the Austin metropolitan area.

We’ll come to the data a little later, but this chart shows the important trends in pricing of houses, condominiums, and townhouses in the 5-county metro area:

Here are the highlights:

  • The decline in sales below $150,000 was obvious for all seven years shown in the graph above.
  • The $150,000 to $200,000 price range still contributed about 20% of all sales through 2015, but had slipped a little even then.  Then sales in that price range plummeted in 2016 and 2017.
  • The percentage contribution of all other price ranges has been rising steadily throughout the period shown.
  • Sales between $400,000 and $500,000 represented 10% of all home sales for the first time in 2016.
  • Homes sold in the $500,000 to $750,000 range reached 10% of total sales in 2017.

With those high points identified, here are more details:

In the top half of that table, I highlighted the years in which each price range peaked over the past seven years.  Note an important difference in 2016 and 2017 — double peaks, in the $200,000 to $250,000 range and between $300,000 and $400,000.  Unless new home builders get very busy building under $250,000 (unlikely), I don’t expect we will see that happen again in 2018.

In Home prices are up in Austin, but … I discussed the ten year period that ended in 2014.  At that time, you could still shop under $200,000 and see a little more than half of the area’s active listings.  In 2017, you had to be looking at homes up to $300,000 to see half of all listings.  I fully expect that point to move up to the $300,000 to $400,000 range in 2018.

In Market Dashboard – 2017 recap), you saw that I expect 2018 to be another fast-paced year for Austin-area real estate.  With that in mind, we’re not done yet with upward pressure on home prices, and I would expect 5% to 6% increases generally, about the same as the last couple of years.

Advertisements

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.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: