Based on recent reports from several sources, the Austin housing market is hotter that the Texas summer sun! Movoto revealed that the median days on market is tight at 42, which is just 7 days shy of last year’s 49. In reviewing the data, it may be advisable for prospective buyers to get in while they can. Because of extremely low inventories with the single-family market, it is a very positive time for sellers right now. Not to mention, mortgage rates are still very low.
Why the Sizzle?
The city has experienced a 22.06 percent increase in population in the last 13 years. Austin has been in the news frequently and made scores of “Best Places” type lists for everything from block parties to walk scores. Austin’s low unemployment rate, positive job growth, and diverse economic opportunities is attracting almost more new residents than the city can keep up with. Movoto’s trend report for Austin noted that, “People are holding on to their real estate and waiting it out for the larger closing check.” The sellers are certainly in the driver’s seat, since in the y-o-y analysis, there has been a decrease of over 55 percent in the number of listings.
Trulia’s latest findings, which were gathered for the period from April 13th through June 13th, confirm the Movoto data. Austin’s median sales price rose by 64.6 percent in one year and is now at $190,516. The increase reflects a dollar amount of $74,738. That information was derived from 60 home sales. The average price per square foot also increased by 27.6 percent and stands now at $111.
It is difficult to know for certain if sales, which were down by 21.1 percent, dipped because of lack of inventory or higher prices. It is encouraging to note that the average listing price in Austin only rose slightly. In Trulia’s report from July 10th, it averaged $599,524, which shows an uptick of 1.5 percent or $9,128 in the week-over-week overview.
Investors and those looking for a bargain may still be in luck. Currently, there are over 600 properties in some stage of foreclosure, REO, or other distressed sale. The bottom line is that interested sellers should move in before prices rise further and inventory dwindles more. There is also concern about rising mortgage rates. Trulia’s report mentioned that, “popular neighborhoods in Austin include Steiner Ranch and Downtown, with average listing prices of $511,914 and $858,943.”
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If you’re interested in purchasing or refinancing a home in Austin, give us call at 972-591-3097 or complete the quote form on the right. One of our loan professionals will contact you with pricing product information.