Austin Real Estate Market is Hotter than a Texas Summer

For the past five continuous months the overall real estate market has been a rare Extreme Sellers Market.  How rare?  In the prior 85 months, spanning 7 years, the Austin market has been in an Extreme Seller’s Market only three months, and all three months were in 2006.

Demand remains strong as people continue to move to the Austin area.  Demand is also increasing as current residents consider home ownership.  They are concerned about raising interest rates, rising rental rates and rising homes values.

Supply, the number of homes for sale, remains at record lows.  There are fewer homes for sale in July than any time in the last 7 years.  There are 22.9% fewer homes for sale than last year.  As a result, the average home stays on the market only 40 days, 24% fewer days than a year ago and also the lowest number of days in 7 years.

The average home sold price in June has increased 8.1% from a year ago.

For homes priced below $500,000, 88% of the Austin market, is in an Extreme to “Very” Extreme Sellers Market.  (See Price Band Chart for market conditions above $500,000.)

There is a seasonal demand and supply in the real estate market.  Comparing today’s conditions to historical patterns gives you insight into your selling and buying decisions.  Typically, the highest number of sales and the  highest inventory occurs in the Spring, reaching their highest levels in May or June.  Sales and Inventory then begin to decline and reach their lowest yearly levels in late Fall.  (See eight year Homes Sold per Month chart.)

As we look at the trends and market conditions we expect slow changes in the market in coming months.  Demand should slightly decrease for the next 5 months.  However, usually the number of homes for sale also decrease slightly until January.  This could continue the Extreme Sellers Market for the rest of the year, resulting in rising home prices.

Want to see more? Check out the full July market report.  Want to know the value of your home?  Call us for a personal market evaluation.   512-345-1252 or email us at homes@westaustin.com