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.
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).
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.
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.
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
How was the Real Estate Market in Austin for 2012?
The real estate market in Austin, TX saw incredible growth in 2012. After an extremely busing January, I finally had time to put this information together and wanted to get it out as soon as I could with it being late already. The graph below gives a good summary of most of the information I have put together.
In 2012, the number of homes sold increased 19% to 10,406 from only 8738 in 2011. The average sales price increase was equally as impressive – in 2012 the average sale price was $342,206 versus $320,868 in 2011, a 6.7% increase. In 2012, the average price per square foot grew to $145.72, a 5.9% increase from the $137.58 average price per square foot from 2011. While each of these numbers illustrate the rapid change in the Austin real estate market in 2012, none are quite as significant as the average time a home was on the market before it sold. The average days on market shrunk to only 52 days in 2012, a 27% decrease from the average 71 days in 2011.
What do these numbers mean for you if you are looking to buy or sell a home in Austin in 2013? If you are looking to buy a home, home prices are rising and inventory is shrinking, meaning that you might pay more than in 2012 and have less options. Because homes are selling more quickly, you should also move fast to put a strong offer in once you have found a home you really like.
If you potentially looking to sell you home in Austin this year, your equity has likely grown and there is likely a strong demand for your home. You have chosen a great time to sell! Drop me a note to learn about how my progressive marketing plan can go to work for you!
by Kyle Pfaffe, REALTOR® e: KylePfaffe@kw.com m: 512-636-9707 w: AustinHomes4You.com
The Kyle Pfaffe Real Estate Team