Austin Market Update – July 2016

Rather watch than read? Click the Image for the video!
Rather watch than read? Click the Image for the video!

The Austin Board of Realtors just released the official numbers for the month of July and in the City of Austin, the average sales price hit $345,000 in July 2016, a 4.6 percent increase from last year, while the number of homes sold in July declined by 7.3 percent. Housing inventory rose slightly from 2.1 months in July 2015 to 2.4 months in July 2016 and homes spent four more days on the market than the previous year.

What do those numbers mean? Well, home values in Central Texas continue to increase, which is great news for homeowners, but I believe those rising prices are starting to have cooling effect on the number of homes sold because of affordability. Home buyers, especially first time home buyers are being pushed further and further from Central Austin because they can’t afford the high prices. This will effect demand in Austin which should slow rising home values in Austin.
If you want to know more about the market in Williamson County, check out this post. If you have any questions about real estate or are thinking of buying a home, drop me a note or call me and I’d be happy to help!

Record Breaking Year for Milwood in 2013!

The real estate market in Milwood has seen consecutive years of growth in 2011, 2012 and 2013, but 2013 was more than just a good year, it was a record breaking year in two key areas! Home prices have been recovering since seeing their peak in 2008 and subsequent slide, but 2013 marks the first year we are breaking pre-recession levels and the highest average sales price in Milwood EVER! The housing market in Milwood saw improvement in more than just average sales prices – here is a break down of each of the key numbers…

Historic Avg Sales Price Trend

Like noted before, the average sales price in Milwood in 2013 was higher than in 2009 ($187,945) and the highest ever. The 2009 record was actually shattered, with the average sales price for a home in Milwood coming in at $214,285, 12.4% higher than 2009 and 17.9% higher than 2012! The number of homes sold in Milwood also increased to 264, a 15.2% increase over 2012 when 229 homes sold.

The average price per square foot of homes sold usually gives us a better overall idea of appreciation/depreciation in an area that the average sales price. In 2013, the average price per square foot of a home sold in Milwood was $115.23, an increase of 9.1% over 2012 when that number was only $105.59.

The other record broken in 2013 was the average number of days each home took to sell (average DOM) in Milwood. The previous record was in 2007 when the average DOM was 30 days. That number had climbed to 58 days in 2011 and came down a lot in 2012 to 38 days. In 2013, the record set in 2007 was broken with an average DOM of only 18 days, 12 days quick than 2007 and 20 days quicker than last year!

If you would like information more specific to your home, drop me a note and I would be happy to get that for you. Thinking of selling this year and taking advantage of this record breaking market? To receive your copy of my Strategic Guide for Savvy Home Sellers – Timing the Market in 2014 fill our the form below…

by Kyle Pfaffe, REALTOR®      e: KylePfaffe@kw.com      m: 512-636-9707      w: AustinHomes4You.com
    

Housing Market Recap for 2013

The Austin Board of REALTORS recently released the housing market’s final statistics for 2013. The trend of strong growth continued last year with improvements in every key area of measurement. The number of homes sold in 2013 grew +19% over 2012, to 30,710 homes with an average sales price of $284,614 – 7.6% higher than last year. Two of the most significant metrics are average price per square foot – a better measurement of property appreciation than average sales price – and average day on market – the average amount of time homes sold for in Austin. The average price per square foot of homes sold in Austin in 2013 grew 9.4% versus 2012 to $133/sq.ft. Also, homes in Austin sold in 2013 in an average of 47 days, down 27% from 2012 the average time to sell was 65 days.

Downtown Austin

The strong 2013 housing market should see continued growth in 2014 as the demand for homes continues to rise while inventory of homes available for purchase struggles to catch up. These numbers are reflective of

the Austin area housing market as a whole and certain neighborhoods saw slightly stronger or weaker growth than the average. For specific information on your neighborhood, drop me a note and I’ll be happy to help! Considering selling this year? Check back for my upcoming post on knowing the BEST time to sell in 2014 (Can’t wait? Just give me a call…).

by Kyle Pfaffe, REALTOR®      e: KylePfaffe@kw.com      m: 512-636-9707      w: AustinHomes4You.com

The Kyle Pfaffe Real Estate Team

September Real Estate Update for Austin, TX

The Austin Board of Realtors recently finalized their numbers for September and those numbers bring more good news for the overall health of the Austin area housing market. In the Austin
area, 2,391 single-family homes were sold in September, a 34% increase vs 2012 and the most sales for September since 2005! The number of days a home was on the market in the Austin area in September was down 22% vs last September and sold in only 44 days. The median sales price this September rose more than 13% from last year to $223,000.

Downtown Austin

Almost more significant are the statistics surrounding the Austin areas housing inventory and will have a impact as we close out the year. This September, Austin had 2,487 new single-family homes come on the market, 17% more than last September, and a total of just under 6,000 total active single-family home listings, 12% less than last year this same month. All of this results in 2.7 months supply of single-family homes, 1 month less than September 2012. In a market balanced between supply and demand, there is about 6.5 months of supply. At only 2.7 months supply, Austin’s  market continues to be a strong seller’s market and is desperate for new listings!

If you would like information specific to your neighborhood, drop me a note and I would be happy to help. If you are considering selling your home and taking advantage of this great seller’s market, let me know and I would love to discuss how I can help sell your home for the highest net to you!

by Kyle Pfaffe, REALTOR®      e: KylePfaffe@kw.com      m: 512-636-9707      w: AustinHomes4You.com

The Kyle Pfaffe Real Estate Team

Milwood Homes Are Selling Faster Than Ever in 2013!

Milwood

Milwood real estate has shown rapid growth through the first 3 months of 2013. The Austin Board of REALTORS recently finalized their statistics for January through March of this year, giving us the opportunity to look at the real estate market

In Q1 2013, the number of homes sold jumped 38.5% to 54, 15 more than last year. The largest change is the average sales price for Q1; the average home in Milwood sold for $201,752 – an 18% increase over 2012! While not as much of an increase as the average sales price, the average price per square foot increased as well. That number rose to $108.84, a +7.4% change. Perhaps the most significant change this year has been in the average amount of time a home took to sell. In Q1 of 2013, the average home in Milwood sold in only 29 days, a 56.1% decrease vs. last year when homes were on the market over 65 days on average!   in Milwood for the first quarter (Q1) for 2013 vs. the first quarter of 2012.

All of these numbers show strong growth in the Milwood real estate market, but none so strongly predict the future trends as much as the number of active listings vs last year. There are currently 16% less homes available for purchase in Milwood this year vs. 2012. Sales prices and time on the market in Q1 show how values have increased, but the number of listings suggests that low inventory and high turnover will continue to drive prices and home values up!

NOW can be a great time to sell your home in Milwood and take advantage of the strong seller’s market and added equity! If you are considering selling your home this year, drop me a note and we can discuss the value of your home and how I can help you get the most equity possible as you look to move out or move up to another home.

by Kyle Pfaffe, REALTOR®      e: KylePfaffe@kw.com      m: 512-636-9707      w: AustinHomes4You.com

The Kyle Pfaffe Real Estate Team

BUYER BEWARE: When “New” Homes Attack

As I work with a buyer to help them find the best home for them, I try to help them look at the big picture and long-term ramifications of their purchase. Statistics show that families move every 5 years or so and so I try to help my clients look at their home’s value if/when they decide to sell it. I hope that all my clients become clients for life and that I will be the agent helping them sell their home when that time comes.

I was looking in a certain community in Northwest Austin with a client of mine and we were looking at both new construction and resale homes. With the ever increasing demand in Austin, builders can repeatedly raise the prices on their homes because the limited supply of resale homes means that buyers have few options but to purchase a new home. That imbalance can drive a buyer to pay more for a new home that it is really worth. Unless homes appreciate at a much higher rate than historical averages, they will unlikely be able to sell it in the future without selling it for less than they owe on their mortgage (a short sale). New Construction Sale

For example, in the neighborhood we were looking in, new homes were selling on average for over 15% ($51,000) more than resale homes and 13% ($14) more per square foot. Also noteworthy is that resale homes sold 98% of list price while new homes sold for 96% of list price. That would indicated that you can often get a more significant concession from a builder than you can from a home owner who is selling their primary residence. There is a certain dynamic in communities where resale homes are being sold alongside new homes that builders are building brand new – new homes effectively set a “price ceiling” on all homes available for purchase. To illustrate – if a buyer is considering two very similar homes, one is resale and one is new construction, they will almost assuredly be willing to pay a premium for the home that no one has lived in previously. That premium puts a cap on what a homeowner can sell their home for in the same neighborhood.

What does this mean for a buyer who is considering a new home versus a resale home? In our example neighborhood, the new home premium can be as high as $51,000. The average price per square foot for resale homes is $105 with new homes selling for $118 and some now being priced as high as $150! While we can’t exactly forecast what prices will be in 5 years, if the new home premium remains that same, the neighborhood would have to appreciate 15% over that time for our buyer to be able to sell the home for the same price he paid for it. I would hate to come back to my client when he is asking me to sell the home I helped him purchase 5 years ago and tell him that his home is worth less than what he paid.

What I am NOT saying, it that new homes will automatically lose value when you purchase them (like buying a new car) or that your new home is not worth what you just paid for it. What I AM saying is that you should be aware of the dynamic I described in neighborhoods where there are new homes and resale homes being sold side by side and make sure that your REALTOR is helping you properly evaluate the true value of any home you are potentially purchasing. Also, understand that values can be very different in different neighborhoods and this dynamic can be different in each.

If you have questions about any certain neighborhoods or have questions about buying a home, new construction or resale, drop me a note and I would be happy to help however I can.

by Kyle Pfaffe, REALTOR®      e: KylePfaffe@kw.com      m: 512-636-9707      w: AustinHomes4You.com

Austin Home Values Climb Higher and Inventory Shrinks in First Quarter

 

The Austin Board of Realtors recently released the finalized statistics for March 2013 which now gives us a complete look at the Austin real estate market for the first quarter (Q1, January – March). This is a quick look at how Q1 compares to the same time period last year and an update on the Austin market as a whole.

In Q1 of 2013, 2736 homes sold within the Austin city limits. This represents a 20.3% increase versus Q1 of 2012, when only 2275 homes were sold. The average sales price in Austin also grew 8.6% to $321,912 and the average price per square foot rose 10% to $159.50. While prices rose, the average time it took a house to sell in Austin declined 28.8%. The average home in Austin sold in 52 days, 21 days less than during the same time period in 2012.

While the data from home sales give a clear picture of the strength of the Austin market, the number of active listings shows that these trends will likely continue for the foreseeable future. The number of homes for sale in Austin was only 5355 in March. This is a 29.5% decrease versus 2012. With over 1200 people moving to Austin every week, demand continues to strengthen and is driving prices even higher as available inventory continues to shrink. This graph is shows the long term trend in Austin.

Historic Count of Active Listings

Though the overall market is very strong, home values and market activity can change from subdivision to subdivision or even street to street. If you are considering selling your home this year, drop me a note and we can discuss the value of your home and how I can help you get the most equity possible as you look to move out or move up to another home.

by Kyle Pfaffe, REALTOR®      e: KylePfaffe@kw.com      m: 512-636-9707      w: AustinHomes4You.com