2015 Year End Statistics

Contact me to discuss your 2016 real estate plans.

Bryan
bryfair@kw.com

infographic_dec15

 

 

2015 Year-End Totals

29,068 – Single-family homes sold, five percent more than 2014.
$263,900 – Median price for single-family homes, nine percent more than 2014.
$333,558 – Average price for single-family homes, eight percent more than 2014.
49 – Average number of days that single-family homes spent on the market, two days more than 2014.
36,810 – New single-family home listings on the market, four percent more than 2014.
6,044 – Active single-family home listings on the market, five percent more than 2014.
29,839 – Pending sales for single-family homes, five percent more than 2014.
$9,695,852,178 – Total dollar volume of single-family properties sold, 13 percent more than 2014.

Leave a comment

Do I need a Realtor when buying a builder home?

This is a reprint from an agent in Florida about working with builders. I do think there are some good points. Contact me if you are looking to build. Our local builders are very professional and also appreciate when a buyer has realtor representation in a transaction.
Bryan Faircloth
bryfair@kw.com

1. If you don’t have an agent – Builder makes more money

As you ride around new neighborhoods looking at homes you stop and go into a model home. There to greet you is a sales person there who works for the builder. Now here is the secret – the builder has budgeted for there to be both a commission for their agent and an agent to represent the buyer. Now if you work directly with the company agent then the Builder makes more money because they didn’t have to pay an additional Realtor fee. So the truth is if you allow me to represent you, it cost you nothing since the Builder has in their budget my fees.

2. Price is Negotiable

I know you look in a window in a model home and there is a floor plan and a price. Most people assume that is the price. But the secret is that just like existing homes for sale this is a negotiable price also. Granted there won’t be as much bargaining room, but the home is for sale and the Builder wants to sell it. One thing to remember is that Builders are in the business and understand they can’t over price homes. But, the answer is always NO until you ask.

3. They will include Options

New Homes now have larger windows and more of them. But, they don’t have blinds. Many lawns front and rear have sprinkler systems. But, they don’t have privacy fences. Kitchens are now more upscale with better appliances and granite counters. But, you will need a refrigerator. However, builders often will give you some or all of these if you pay the stated price. Why? They need to maintain the values since they will build more homes and have to sell them for the same or a slightly increased price. Window treatments, fences and refrigerators don’t show up in the price on the settlement statement. If you have a good Realtor representing you they should know what options the builder is offering and the total amount offered.

4. They will pay some or all of your Closing Cost

Almost daily I get emails from Builder Reps stating that if I bring them buyers they will pay much of your closing cost. However, if you are just riding around and enter a model home you don’t know this and may not know to ask. Builders know which Realtors bring the most buyers to them and keep them informed of special pricing, feature options and closing cost offered. Many of them have preferred finance companies that offer them additional fees paid for the buyer. Some of the time this is mentioned, but again the answer is NO unless you ask.

5. The Longer a Home is in the Inventory – The More Discounts

A builders favorite kind of buyer is one who selects a lot and a model to be built on that lot. Then the builder has a firm contract for price and terms and knows that when a home is completed there is a closing. The builder gets their money and the buyer gets their home. However, in today’s market this is far more rare. Most of the time the builder constructs several Spec homes (homes for sale but with not contract to close). As time goes on and these homes don’t sale they cost the builder more and more money. Also, most builders are like you and your credit cards. You have a limit they will allow you not to go over. Builders are similar. Their lenders will only allow them to borrow so much money for spec homes. Then they have to sell some to allow more money to be released. This is when the most discounts, options and closing cost are offered. Every week I get emails with the list of homes offering the best homes to select for the most savings.

Here is the REAL SECRET. If you select me to be your Realtor for a new home it cost you nothing. The builder has budget to pay me already. And, you get my knowledge of location, pricing and homes available for the most savings.

Posted in For Buyers, For Sellers, Marketing Reports | Leave a comment

Northwoods At Avery Ranch-why move there in 2016

Hello friends and clients,
More info available at www.BryanSellsAveryRanch.com – bryfair@kw.com

One of my favorite areas of NW Austin consists of the 78717 zip code. This would include Avery Ranch, Davis Springs, and now Northwoods at Avery Ranch. Northwoods is another new community being built out in the sought after Avery Ranch subdivision. The homes in Northwoods begin with the Cottages built by Grand Haven Homes, who is also building the newest Avery Ranch neighborhood, Pearson Place. Other builders going into the Avery Station/Northwoods area include David Weekley, Scott Felder and Standard Pacific. In addition, D.R. Horton continues to build in the western part of the development and has really opened up their latest section with newly released lots. Oh yeah, there is also a pretty good golf course right there as well.

To decide what builder is best for you, choose ME as your buyer representative and get your best deal possible.

Bryan

Leave a comment

Austin Area December 2015 Housing Statistics

webheader_dec2015

AUSTIN, Texas – Jan. 21, 2016 – Austin-area single-family home sales and prices set all-time records in 2015, as well as records for the month of December 2015, according to the December 2015 and Year-End 2015 Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®.

Aaron Farmer, 2016 President of the Austin Board of REALTORS®, explained, “Demand for Austin-area real estate was stronger than ever in 2015, primarily due to our region’s job and ongoing population growth. However, low housing inventory levels, rising home prices and high housing development costs have brought Austin’s housing affordability issues to critical levels. Median price for single-family homes in the Austin area increased nearly $30,000 in the last year alone.”
According to the report, 29,068 single-family homes were sold in the Austin area in 2015, a five percent increase from 2014 and an all-time high for Austin-area home sales. Single-family home sales for the Austin area also set a monthly record in December 2015, increasing five percent year-over-year to 2,390 home sales.

Over the course of 2015, median price for Austin-area single-family homes increased nine percent from 2014 to $263,900. In December 2015, the median price for Austin-area homes was $270,000, 10 percent higher than December 2014. As a result, the total sales dollar volume for single-family homes in 2015 topped $9.6 billion, an increase of more than $1 billion from 2014.

Farmer continued, “The Austin Board of REALTORS® plans to build upon the past year’s efforts to advocate for a more affordable Austin, which included supporting Mayor Adler’s Housing Our Heroes initiative and advocating for permanent tax relief for Austin homeowners at the polls last November. It’s crucial that Austin continues to make strides with pivotal policy issues in 2016 to improve the land development code through CodeNEXT and take next steps to achieve more stringent code enforcement.”

The Austin area’s housing affordability challenges were intensified by a continued shortage of housing inventory in 2015. Monthly housing inventory in December 2015 remained unchanged from 2014 at 2.2 months, less than half of what the Real Estate Center at Texas A&M University considers a balanced housing inventory level of approximately 6.5 months.

Austin-area homes spent two more days on the market in 2015 as the year prior, or an average of 49 days. In December 2015, the average amount of time homes spent on the market was 57 days, one day more than December 2014. Pending sales for single-family homes decreased one percent year-over-year to 1,601 pending sales, but pending sales for all of 2015 rose five percent from 2014 to 29,839 pending sales.

Active listings in December 2015 rose three percent year-over-year to 5,214 listings, while new listings increased six percent to 1,646 new listings from December 2014. Throughout the year, active listings rose five percent in 2015 to 6,044 listings and new listings increased four percent to 36,810 listings.

“There are many opportunities, as well as many challenges, ahead in 2016,” Farmer concluded. “Austin residents can count on the Austin Board of REALTORS® to continue to work with the community and city leaders to advocate for policies that ensure everyone in Austin’s communities have a safe, affordable place to live.”

December 2015 Statistics

2,390 – Single-family homes sold, five percent more than December 2014.
$270,000 – Median price for single-family homes, 10 percent more than December 2014.
$348,904 – Average price for single-family homes, 13 percent more than December 2014.
57 – Average number of days single-family homes spent on the market, one day more than December 2014.
1,646 – New single-family home listings on the market, six percent more than December 2014.
5,214 – Active single-family home listings on the market, three percent more than December 2014.
1,601 – Pending sales for single-family homes, one percent less than December 2014.
2.2 – Months of inventory* of single-family homes, unchanged compared to December 2014.
$833,880,560 – Total dollar volume of single-family properties sold, 19 percent more than December 2014.

Leave a comment

Austin Area 2014 Housing Statistics

Good morning,

Below please find the 2014 year end statistics for the Austin metro area.  In summary, we have a 2.2 month supply of available homes and the average time on the market is now 47 days.  Contact me  if you are looking to buy a home, sell your home, or invest in real estate.
Bryan Faircloth  www.BryanSellsAustin.com
Keller Williams Realty
bryfair@kw.com
(512) 468-9791
Texas Law requires all real estate licensees to give the above information about brokerage services.
Your referrals are appreciated!
Austin-area home sales set records for the month of December, annual home sales volume in 2014
Austin Board of REALTORS® releases real estate statistics for December 2014 and 2014 year-end totals

 

AUSTIN, Texas – January 21, 2014– According to the December 2014 and Year-End 2014 Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®, the Austin-area housing market set a record for single-family home sales volume for the month of December, as well as a record for annual home sales volume in 2014. This marked the fourth-straight year of annual home sales increases.Barb Cooper,2015 President of the Austin Board of REALTORS®, explained, “The Austin area experienced a strong, stable housing market in 2014, with year-end 2014 showing similar market conditions to those one year ago. Last month, the U.S. Census Bureau named Austin the third-fastest growing big city in America since 2000. That steady job and population growth has continued to drive increases in home sales volume and, combined with low housing inventory levels, home prices as well.”According to the report, 2,283 single-family homes were sold in the Austin area in December 2014, a 14 percent increase compared to December 2013 and an all-time high for Austin-area home sales in the month of December. In 2014, home sales volume slightly exceeded 2013 levels to set a new record for the number of Austin-area homes sold in a year with 27,768 homes sold, a two percent increase from 2013.

Over the course of 2014, median price increased eight percent over 2013 to $242,500. In December 2014, the median price for Austin-area homes was $246,530, 10 percent higher than December 2013. As a result, the total sales dollar volume for single-family homes in 2014 topped $8.6 billion, an increase of more than $673 million from 2013.

Housing inventory levels remained low in 2014, despite breaking an 18-month trend of monthly decreases in the second quarter of 2014. In December, Austin-area monthly housing inventory was 2.2 months, 0.2 months higher than December 2013 but still well below the 6.5-month inventory level the Real Estate Center at Texas A&M University cites as a balanced housing market.

This slow rise in housing inventory was driven by an influx of listings throughout the last half of 2014. Active listings in December 2014 jumped 12 percent year-over-year to 5,077 listings, while new listings rose 10 percent to 1,546 new listings from December 2013. Throughout the year, new and active listings each rose four percent in 2014 to 35,423 and 5,734 listings, respectively.

In 2014, homes spent an average of 47 days on the market, or three days fewer than homes sold in 2013, while pending sales increased one percent from 2013 to 28,325 sales. Homes sold in December 2014 spent three more days on the market than December 2013, or an average of 55 days, and pending sales increased 18 percent to 1,623 sales during the same time frame.

Cooper concluded, “The Austin-area housing market is consistent, but so are its challenges. More homes on the market, at all price ranges and throughout all areas of Austin, will be crucial to maintaining Austin’s affordability in 2015. As one of the fastest growing metropolitan areas in the U.S. we must look to our new city council for a regulatory environment that stimulates and grows housing stock in a healthy, sustainable way.”

December 2014 Statistics

  • 2,283 – Single-family homes sold, 14 percent more than December 2013.
  • $246,530 – Median price for single-family homes, 10 percent more than December 2013.
  • $311,082 – Average price for single-family homes, six percent more than December 2013.
  • 55 – Average number of days single-family homes spent on the market, three days more than December 2013.
  • 1,546 – New single-family home listings on the market, 10 percent more than December 2013.
  • 5,077 – Active single-family home listings on the market, 12 percent more than December 2013.
  • 1,623 – Pending sales for single-family homes, 18 percent more than December 2013.
  • 2.2 – Months of inventory* of single-family homes, 0.2 month more than December 2013.
  • $710,200,206 – Total dollar volume of single-family properties sold, 21 percent more than December 2013.

2014 Year-End Totals

  • 27,768 – Single-family homes sold, two percent more than 2013.
  • $242,500 – Median price for single-family homes, eight percent more than 2013.
  • $309,975 – Average price for single-family homes, seven percent more than 2013.
  • 47 – Average number of days that single-family homes spent on the market, three days fewer than 2013.
  • 35,423 – New single-family home listings on the market, four percent more than 2013.
  • 5,734 – Active single-family home listings on the market, four percent more than 2013.
  • 28,325 – Pending sales for single-family homes, one percent more than 2013.
  • $8,607,385,376 – Total dollar volume of single-family properties sold, nine percent more than 2013.

The following sections describe trends in other sectors of the Austin real estate market.

Townhouses & Condominiums

The volume of townhouses and condominiums (condos) purchased in the Austin area in December 2014 was 222, which is six percent more than December 2013. In the same time period, the median price for condos was $229,750, which is five percent more than the same month of the prior year. When compared to December 2013, these properties spent five additional days on the market, or an average of 55 days.

Over the course of 2014, 3,150 Austin condos were sold, which is statistically unchanged compared to 2013; the median price was $215,000, or 10 percent more than 2013; and condos spent an average of 43 days on the market, nine days fewer than 2013.

Leasing

In December 2014, a total of 1,214 properties were leased in Austin, which is 17 percent more than December 2013. The median price for Austin-area leases was $1,450, which is five percent more than the same month of the prior year. In all of 2014, a total of 16,960 properties were leased in Austin, which is four percent more than 2013, and the median lease price was $1,480, or six percent more than 2013.The Austin Board of REALTORS® (ABoR) builds connections through the use of technology, education and advocacy to strengthen the careers of its 11,000 members and improve the lives of Central Texas families. We empower Austin REALTORS® to connect their clients to the region’s most complete, accurate and up-to-date listings data. For more, contact the ABoR Marketing Department at marketing@abor.com or 512-454-7636. For the latest local housing market listings, visit AustinHomeSearch.com.* The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

 

Posted in For Buyers, For Sellers, General Information, Listings, Marketing Reports | Leave a comment

November 2014 Austin Area Market Statistics

The latest housing stats for our area remain consistent with year to date totals, with both sales and median prices up over the same period a year ago. A key statistic if you are planning to sell your home is that there is a 2.4 month supply of inventory. In other words, we have been below the “balanced” market figure of 6.5 months for 3 consecutive years. If you are looking to sell your home and buy a new one, or invest in additional real estate, contact me to discuss your 2015 goals. Thank you once again for your business and your referrals!

Bryan Faircloth www.BryanSellsAustin.com
Keller Williams Realty
bryfair@kw.com
(512) 468-9791

http://www.trec.state.tx.us/pdf/contracts/op-k.pdf

Texas Law requires all real estate licensees to give the above information about brokerage services.

Your referrals are appreciated!

Austin-area home sales, median price break records for third straight month in November

Austin Board of REALTORS® releases real estate statistics for November 2014

AUSTIN, Texas – December 19, 2014 – The Austin-area continued to break records in home sales and median price for single-family homes last month, according to the November 2014 Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR). In November, home sales and median price were the highest ever recorded in the month of November for the Austin area. During the month, single-family home sales increased six percent over the prior year to 1,934 homes sold and the median price for Austin-area homes was $245,000, an 11 percent increase from November 2013.

Additionally, Austin-area housing inventory was 2.4 months in November 2014, a small increase of 0.1 months compared to the prior year. Housing inventory remains consistently tight despite an increase in new listings of five percent over the prior year and an increase in active listings of nine percent compared to November 2013. Housing inventory in Austin has remained below 6.5 months of inventory for more than three years, which is the inventory figure cited by the Real Estate Center at Texas A&M University as a market in which supply is balanced with demand. In November 2014, homes spent an average of 54 days on the market, three days longer than the same month of the prior year.

Bill Evans, 2014 President of the Austin Board of REALTORS¬®, explained, “As the new year approaches, demand for Austin-area homes remains strong. Fortunately, listings are up year-over-year to meet some of that need, but demand continues to outpace supply, placing a continued strain on housing inventory and pushing up home values. That’s great news for Austin homeowners looking to sell, but as we’ve discussed all year, it continues to present challenges for affordability in our market. With the newly elected Austin Mayor and City Council, ABoR looks forward to continuing to advocate for the interests of all homeowners, ensuring our market can meet the needs of our residents and Austinites can continue to afford property in this great city.”

November 2014 Statistics •1,934 – Single-family homes sold, six percent more than November 2013.

•$245,000 – Median price for single-family homes, 11 percent more than November 2013.

•$311,222 – Average price for single-family homes, six percent more than November 2013.

•54 – Average number of days single-family homes spent on the market, three days longer than November 2013.

•2,067 – New single-family home listings on the market, five percent more than November 2013.

•5,561 – Active single-family home listings on the market, nine percent more than November 2013.

•1,893 – Pending sales for single-family homes, eight percent more than November 2013.

•2.4 – Months of inventory* of single-family homes, 0.1 months more than November 2013.

•$601,903,348 – Total dollar volume of single-family properties sold, 12 percent more than November 2013.
The following sections describe trends in other sectors of the Austin-area real estate market.

Townhouses & Condominiums

The volume of townhouses and condominiums (condos) purchased in the Austin area in November 2014 was 162, which is 24 percent less than November 2013. In the same time period, the median price for condos was $221,000, which is 13 percent more than the same month last year. These properties spent an average of 49 days on the market, five days less than November 2013.

Leasing

In November 2014, a total of 1,175 properties were leased in Austin, which is six percent more than November 2013. The median price for Austin-area leases was $1,420, which is two percent more than the same month last year.

The Austin Board of REALTORS® (ABoR) is a non-profit, voluntary organization dedicated to educating and supporting Central Texas REALTORS®. ABoR proudly serves more than 10,000 members, promotes private property rights and provides accurate, comprehensive property listing information for the Greater Austin area. Home sales statistics are released by ABoR on a monthly basis. For more information, please contact the ABoR Marketing Department at marketing@abor.com or 512-454-7636. Visit AustinHomeSearch.com, a public resource on Austin real estate, for the latest news on the local housing market.

* The inventory of homes for a market is measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

Posted in For Buyers, For Sellers, Marketing Reports | Leave a comment

Austin Area Housing Statistics – October 2014

Good morning,

October’s statistics show healthy gains from the prior year with our market. Probably the most key stat is that there is a 2.7 month supply of active listings as of October 31.

Contact me if you are looking to buy a home, sell your home, or invest in additional real estate. Thank you for your business and referrals.

Bryan Faircloth www.BryanSellsAustin.com
Keller Williams Realty
bryfair@kw.com
(512) 468-9791

Austin-area home sales, prices set record for month of October

 

Austin Board of REALTORS® releases real estate statistics for October 2014

AUSTIN, Texas – November 20, 2014 – According to the October 2014 Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), Austin-area home sales soared 16 percent year-over year to 2,403 single-family home sales, the largest year-over-year increase in home sales to date this year and an all-time high for the month of October. Single-family home prices for the Austin area also set a record for the month of October.

Bill Evans, 2014 President of the Austin Board of REALTORS¬®, explained, “It’s always exciting to see a record-breaking month in real estate, but let’s remember that high demand often leads to high prices. For example, this month’s results show that it costs a typical homeowner $23,000 more to buy a home than one year ago. For some Austinites, that kind of price increase could mean looking at homes smaller in size, further outside the Austin area, or not being able to afford to buy a home at all. This just underscores the importance of housing affordability as a key issue going into 2015.”

Austin-area home prices for single-family homes returned to double-digit increases in October 2014. Both median and average price increased 11 percent year-over-year to $240,000 and $311,028, respectively – the highest figures ever recorded for the month of October.

In October 2014, active listings increased 11 percent year-over-year to 6,170 listings and new listings jumped 11 percent during the same time frame to 2,850 listings. Continued gains in single-family home listings over the last few months are having a positive effect on pending sales, which jumped nine percent year-over-year in October 2014 to 2,255 pending single-family home sales. Monthly housing inventory in the Austin area also continued to benefit from more listings entering the market, increasing 0.2 months year-over-year to 2.7 months in October 2014. This is still well below the Real Estate Center at Texas A&M University’s balanced housing inventory level of 6.5 months.

Evans added, “This additional housing inventory is encouraging, but we’ve got a long way to go before homeownership options and availability meet demand in our city. To get us there, we need a regulatory environment that supports all types of affordable housing options.”

While Austin-area homes continue to sell quickly, the average number of days single-family homes spent on the market increased year-over-year for the first time since August 2011. Homes spent an additional two days on the market in October 2014 compared to October 2013, or an average of 50 days.

Evans concluded, “Many of Austin’s City Council positions, including mayor, are yet to be decided. This is Austin’s last opportunity to choose a City Council that will ensure that Austinites can afford to buy a home in the neighborhoods where they live. ABoR urges Austinites to vote early December 1 through 12 or on Dec. 16 for City Council candidates who will prioritize housing development and affordability issues in 2015.”

October 2014 Statistics •2,403 – Single-family homes sold, 16 percent more than October 2013.

•$240,000 – Median price for single-family homes, 11 percent more than October 2013.

•$311,028 – Average price for single-family homes, 11 percent more than October 2013.

•50 – Average number of days single-family homes spent on the market, two days longer than October 2013.

•2,850 – New single-family home listings on the market, 11 percent more than October 2013.

•6,170 – Active single-family home listings on the market, 11 percent more than October 2013.

•2,255 – Pending sales for single-family homes, nine percent more than October 2013.

•2.7 – Months of inventory* of single-family homes, 0.2 months more than October 2013.

•$747,400,284 – Total dollar volume of single-family properties sold, 29 percent more than October 2013.

The following sections describe trends in other sectors of the Austin-area real estate market.

Townhouses & Condominiums
The volume of townhouses and condominiums (condos) purchased in the Austin area in October 2014 was 272, which is three percent less than October 2013. In the same time period, the median price for condos was $225,000, which is eight percent more than the same month last year. These properties spent an average of 47 days on the market, which is unchanged from October 2013.

Leasing
In October 2014, a total of 1,416 properties were leased in Austin, which is 17 percent more than October 2013. The median price for Austin-area leases was $1,450, which is five percent more than the same month last year.

The Austin Board of REALTORS® (ABoR) is a non-profit, voluntary organization dedicated to educating and supporting Central Texas REALTORS®. ABoR proudly serves more than 10,000 members, promotes private property rights and provides accurate, comprehensive property listing information for the Greater Austin area. Home sales statistics are released by ABoR on a monthly basis. For more information, please contact the ABoR Marketing Department at marketing@abor.com or 512-454-7636. Visit AustinHomeSearch.com, a public resource on Austin real estate, for the latest news on the local housing market.

* The inventory of homes for a market is measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

Posted in For Buyers, For Sellers, Listings, Marketing Reports | Leave a comment

To buy or not to buy? Trulia says yes in Austin and most places in the country

Hello friends and clients,
Per Trulia and the Austin Business Journal, here is some rent v. buy analyses on our local level. Contact me if you are looking to buy a home, sell your home, or invest in additional real estate.

Bryan Faircloth
Keller Williams Realty
bryfair@kw.com
www.BryanSellsAustin.com

To buy or not to buy? Trulia says yes in Austin and most places in the country

Jan Buchholz Staff Writer- Austin Business Journal

In Austin — even with the dynamic appreciation in home values that has continued for the past two years — it’s 30 percent cheaper to own than rent. That’s the assessment of Trulia, the national real estate Web portal and research company.

In fact in every major U.S. market it’s still cheaper to buy a house than rent over the long term — an average of 38 percent cheaper.

Here’s a link to Trulia’s latest “Rent vs. Buy” report. That statistic, however, assumes a 20 percent down payment on a 30-year loan and a few other factors.

For many first-time homebuyers a 20 percent down payment can be an almost impossible stretch, especially given that the average home price in Austin is $308,514, according to the latest market report by the Austin Board of Realtors. Complicating the local landscape is the fact that land prices across the Austin area are fetching a premium, creating a nearly impossible scenario for homebuilders that would like to provide an inventory of starter homes but just can’t make the numbers pencil out.

The issue of first-time homebuying isn’t exclusive to Austin. It’s a problem everywhere and there may be other cultural factors at play, as Jed Kolko, Trulia’s chief economist points out.

“For a millennial with little savings and no Bank of Mom and Dad, an FHA loan might be the only option. If our hypothetical twentysomething is not in a tax bracket that makes itemizing worthwhile and only stays put five years — those young people are restless — buying ends up costing more than renting in 27 of the largest metros,” Kolko said. “Those 27 include not only pricey coastal markets but also markets like Phoenix, Las Vegas and Colorado Springs.”

And presumably Austin, where the robust young population might not want to leave the city ever but also might not want to stay put very long in the same neighborhood.

The gap between renting and owning is more pronounced in other Texas markets. In Houston it’s 43 percent cheaper to buy, and almost the same in Dallas at 42 percent. In San Antonio the gap is 38 percent.

Consider this: In Detroit the gap is the widest and most striking. It’s 63 percent cheaper to own there than to rent. The gap is smallest in Honolulu at just 17 percent.

By regions, the gap is largest in the Midwest and South, and much smaller in large metro areas in New York and California.

Another interesting statistic from Trulia’s report is that the tipping point for whether to buy or rent in Austin would be if mortgage interest rates hit 8.9 percent — not a likely scenario at the moment, though most real estate experts around the country expect interest rates to rise in 2015 from historical lows.

Posted in For Buyers, For Sellers, General Information, Regional News | Leave a comment

Austin Area Housing Statistics – August 2014

 

Austin Board of REALTORS® releases real estate statistics for August 2014

AUSTIN, Texas – September 18, 2014 – Austin-area home sales declined for the second consecutive month in August 2014 as rising home prices and housing affordability issues continue to affect the Austin-area housing market. According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), Austin-area home sales decreased four percent year-over-year to 2,835 single-family home sales in August 2014.

Bill Evans, 2014 President of the Austin Board of REALTORS¬®, explained, “A majority of Austin-area homes are now priced out of an affordable range for first-time and first-time move up homebuyers, where a significant portion of home sales volume occurs. We need a regulatory environment that supports the development of affordable housing stock for the future stability of our Austin housing market. As we prepare for the new districted Austin City Council this November, ABoR encourages voters to seek leaders that will address our housing and development challenges. The Austin Land Development Code basically needs to be overhauled.”

According to the report, median price for single-family homes jumped 11 percent year-over-year to $247,500 and average price rose nine percent year-over-year to $311,414. Single-family homes continued to sell quickly as they spent an average 42 days on the market, one day fewer than August 2013.

Monthly housing inventory continued to increase in August 2014, rising 0.2 months from the year prior to 3.0 months. While still well below the Real Estate Center at Texas A&M University’s balanced housing inventory level of 6.5 months, Austin-area housing inventory levels could continue to rise as much-needed listings enter the market.

In August 2014, active listings jumped 10 percent year-over-year to 6,707 listings and new listings rose four percent during the same time frame to 3,310. In addition, pending sales increased one percent to 2,430 single-family home sales.

Evans concluded, “An increase in new and active listings is giving the market some much needed breathing room, but Austin’s housing inventory is still very low and has few affordable options. The new Land Development Code will be a crucial catalyst to sustainable market growth in 2015 and years to come, but it must be heavily revised in order to create housing options throughout the city that are affordable for all of Austin’s homebuyers.”

August 2014 Statistics

    • 2,835 – Single-family homes sold, four percent less than August 2013.
    • $247,500 – Median price for single-family homes, 11 percent more than August 2013.
    • $311,414 – Average price for single-family homes, nine percent more than August 2013.
    • 42 – Average number of days single-family homes spent on the market, one day fewer than August 2013.
    • 3,310 – New single-family home listings on the market, four percent more than August 2013.
    • 6,707 – Active single-family home listings on the market, 10 percent more than August 2013.
    • 2,430 – Pending sales for single-family homes, one percent more than August 2013.
    • 3.0 – Months of inventory* of single-family homes, 0.2 months more than August 2013.
  • $882,858,690 – Total dollar volume of single-family properties sold, four percent more than August 2013.

The following sections describe trends in other sectors of the Austin-area real estate market.

Townhouses & Condominiums

The volume of townhouses and condominiums (condos) purchased in the Austin area in August 2014 was 308, which is 13 percent less than August 2013. In the same time period, the median price for condos was $212,000, which is nine percent more than the same month of the prior year. These properties spent an average of 34 days on the market, six days fewer than August 2013.

Leasing

In August 2014, a total of 2,109 properties were leased in Austin, which is three percent more than August 2013. The median price for Austin-area leases was $1,500, which is seven percent more than the same month last year.

The Austin Board of REALTORS® (ABoR) is a non-profit, voluntary organization dedicated to educating and supporting Central Texas REALTORS®. ABoR proudly serves more than 10,000 members, promotes private property rights and provides accurate, comprehensive property listing information for the Greater Austin area. Home sales statistics are released by ABoR on a monthly basis. For more information, please contact the ABoR Marketing Department at marketing@abor.com or 512-454-7636. Visit AustinHomeSearch.com, a public resource on Austin real estate, for the latest news on the local housing market

 

* The inventory of homes for a market is measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

Leave a comment

5 Reasons to Buy a Home in the Next 5 Months

From Yahoo! Homes-informative article. Contact me if you are planning to buy a home, sell your home, or invest in real estate!

Bryan Faircloth
bryfair@kw.com

A combination of market factors may make you think you’re getting priced out of the home market. But one observer believes first-time homebuyers might want to consider making a move.

“I know it’s hard to face rising interest rates and rising home prices at the same time,” says Ilyce Glink, real estate expert and managing editor of the Equifax finance blog. “The good news is there’s still plenty of runway if you want to buy a house this year.”

Glink believes first-time homebuyers should consider these five good reasons to buy a house before the end of the year:

Home prices are still off their highs

Yes, home prices are rising from the lows seen during the housing crash of 2008, but they’re still nearly 20% off their mid-2006 peak. According to the S&P/Case-Shiller Home Price Index, average U.S. home prices are currently at summer 2004 levels. In markets that are still recovering, first-time homebuyers could see significant appreciation over the next few years, if they buy now.

[Ready to buy a home? Click to compare mortgage interest rates from lenders now.]

Interest rates are expected to keep rising

Interest rates are slowly climbing, and as the Federal Reserve concludes its economic stimulus plan, rates are expected to continue to rise. Some experts believe mortgage interest rates could hit 5% by the end of 2014 or the first quarter of 2015, according to Glink. And even a small bump in interest rates can mean a significant jump in your monthly note.

“If you’re offered a 4.2% interest rate on a $400,000 mortgage, for example, your monthly payment will be $1,961, and you’ll pay more than $300,000 in interest over the loan’s 30-year term,” Glink says. “If your interest rate were 4.9%, your monthly payment would jump to $2,115, and the total interest paid over the life of the loan would exceed $360,000.”

Rental rates are rising

There is always an argument to be made regarding whether to buy or rent. It’s all a matter of your particular situation – as well as the status of your local housing market. If you need to be mobile — prepared for job transfers or out-of-state promotions — or are continuing to search for “the perfect place,” renting is probably right for you.

However, if you would like to put down some roots, and rents are high in your hometown – it might be cheaper to buy.

“Divide the list price of the home you’re interested in by the annual rental rate of a comparable property to determine the price-rent ratio,” Glink advises. “If it’s below 20, chances are it’s a good time to buy.”

Of course, buying a home means more than a mortgage. Remember to consider the other built-in expenses: maintenance, insurance, taxes and utilities.

[Shopping for a home loan? Click to compare mortgage interest rates from lenders now.]

Consider your buying power

Americans have been steadily reducing their debt load. Maybe you have, too. The lower your debt, the higher your buying power. Creditors will consider your debt-to-income ratio – how much debt you have, compared to your gross (before-tax) income.

“Experts generally agree that you can spend between 28% and 36% of your gross income in total debt service — that’s your housing expenses plus your other debt payments,” says Glink.

With lower debt comes a higher score

As you pay off student loans, credit cards and consumer debt, your credit scorewill improve. And that’s one of the biggest factors mortgage lenders consider when determining the interest rate and terms of your loan.

“You should definitely consider buying this year, because it’s unlikely the housing market will look much rosier next year, when interest rates and home prices could be even higher,” Glink says.

Posted in For Buyers, General Information, Marketing Reports | Leave a comment