Single Family Monthly Graphs

Note to readers: The Wise Assessment is posted every month. We post our stats later that other real estate companies because we want the most accurate numbers available…and this makes them worth waiting for! Other agents simply copy and paste graphs that they get from other sources and offer no opinions to the marketplace conditions. We track data in house and compare the market on a whole to what we produce internally in order to produce an opinion of the data and give our thoughts of what we are personally experiencing as a top company in Austin.

Overall Market Summary Report

The Wise Assessment

SELLERS: The number of single-family homes that were available for sale took a nose-dive at the end of 2009. The average sales price sky-rocketed to a never-before seen level of $261,000. While this may seem to be an excellent indicator of a recovering market and proof that now is a great time to sell for a very high price, we must first investigate the finer details and statistics before making interpretations. See the Average Sales Price graph and narrative below for our Wise Assessment on this phenomenon.

Is This A Good Time To Sell? We are meeting with clients on a daily basis who are asking this specific question. A general rule to follow when determining if now is a good time to sell:

1. Move-up: if you are selling a home and looking to ‘move-up’ or buy a more expensive home, the very best time to do this is when the market is down (like now)
2. Move-down: if you are selling a home and looking to ‘move-down’ or buy a less expensive home, the very best time to do this is when the market is hot (not now)

While this is a good general rule to follow, your specific circumstances and needs must be considered before making a decision.

BUYERS:

Interest rates remain low.

Home prices remain low.

Therefore, your monthly payment will be lower now than when either or both interest rates and home prices increase.

I assess that, even though it appears that home prices are increasing (see the interpretation below), the reality is that this is still a very good time to buy…especially before prices and interest rates begin to creep up.

Average Sales Price

“WOW! My home is now worth $50,000 more than it was last month!” While the graph alone would indicate your home is worth 10% more now than it was in November, this is not the whole story. Let’s examine:

• This past fall the government offered 8,000 reasons (in dollars) for first-time home buyers (property virgins) to buy homes before December
• This incentive prompted a large number of virgins to buy homes, which drove the average price down while, at the same time, supply and demand increased
• In December, there was a significant decline in the number of virgin buyers, which drove prices back up
• Also in December, there was a higher percentage of homes sold in the $300K-$1M price range than in previous months

These facts would indicate that we have experienced an anomoly in the market, and your home is likely not worth more today than in November. But, this begs the question:

• Is your home worth more now? The only way to make an assessment of value for your home is to investigate your specific home and see how it compares and competes in the current market.

Sales Closed by Month (Demand)

The number of sales in December followed the seasonal cycle of sales in Real Estate in Austin. While we did experience an unusual number of home sales in September and October of 2009 because of the Virgin tax credit, the market returned to its normal operating procedures once the original credit was scheduled to expire. Barring any disaster, the number of sales in Austin should coincide with the temperature increases….stay tuned and check that weather report!

Active Listings (Supply)

Again, we are following the cyclical trend of there being fewer homes available for sale in the fall and winter than in the spring and summer. We did notice, however, that the number of home sales increased in the fall over the previous years, which caused the supply to remain low.

We are anticipating the inventory to increase drastically in early 2010, as the graph reflects for the previous years, so be on the look out for a greater number of homes on the market in the coming months.

Offers of Help

• What Is My Home Worth? Want to get a good idea of what your home is worth … and find out right now online? Check out our Market Snapshot for an analysis of the value of your Austin home.
• What Is That Home Worth? “Stop the car, honey … look at that house. I wonder what it’s worth?!?” Does this ever happen to you? Ever wonder what that house is worth? Find out the value of that Austin neighborhood or home.
• What do I need to know before I sell? Typically when a home does not sell, there is one reason…and it isn’t price. We invite you to look at several key factors to consider before selling your home. Visit One Reason for more information.

BTW, We do have very specific data for every price range and area of town. Want specific data pertaining to your neighborhood or your own home? We have it! Please let us know if you would like a neighborhood-specific analysis by emailing us at experience@goodlifeteam.com or calling us at 512.892.9473.

The data provided to create these graphs are available to you by FREE subscription to our monthly update service.  Please email us experience@goodlifeteam.com to receive your monthly update. Or, catch the wave and follow @GoodLifeTeam on Twitter.

experience@goodlifeteam.com| 512.892.9473  | www.goodlifeteam.com

This year’s Austin Modern Home Tour consists of a driving tour of 16 modern homes in the Austin area followed by a cocktail reception and architect panel at Truluck’s downtown.

In addition to several articles in the Austin American Statesman, the tour is being covered by several of the major news stations, including this piece by Fox News, a live interview with Krisstina Wise:

Learn more about the tour, see the homes, and purchase your tickets at http://glt.bz/mht2010.

Single Family Monthly Graphs

Note to readers: The Wise Assessment is posted on the first day of every month. We post our stats later that other real estate companies because we want the most accurate numbers available…and this makes them worth waiting for! Other agents simply copy and paste graphs that they get from other sources and offer no opinions to the marketplace conditions. We track data in house and compare the market on a whole to what we produce internally in order to produce an opinion of the data and give our thoughts of what we are personally experiencing as a top company in Austin.

Keep reading for the written Wise Assessment and/or listen to our interpretations on our latest VLOG:

Overall Market Summary Report

The Wise Assessment

WARNING: These statistics are BORING! Nothing is on fire, nothing has flooded, and the Austin Housing Market is behaving like it should. This is GREAT news. What this means is that the Austin Real Estate Market is beginning to stabilize, and the drastic shifts in the graphs from Q4 of 2008 and Q1 of 2009 seem to finally be history.

The number of single family Sales in November were 58% higher than November 2008….not terribly surprising since the market was in a tailspin in November 2008 and dipped lower than it has been in over 5 years. Does this mean the market has fully recovered and we are in for a great 2010? In my opinion, 2010 will be a slow and steady year building a stronger foundation for a stronger economy - both overall and specifically in real estate.

• SELLERS: The supply (Active Listings) of Austin homes for sale hit an annual low in November, providing fewer homes for buyers to choose from … and less competition for sellers in the market! This trend is not surprising, and easily predictable. As we note from the historical graph, November and December provide the fewest number of homes on the market, and this year is no different. What IS different is the unusually high number of home sales for the fall. Typically, the falling inventory coincides with the falling sales, and ultimately keeps the average sales price relatively steady. However, this year, we have had the decline in inventory and yet the sales have remained steady. If all homes in Austin were the same and priced equally, then this would trigger an increase in the average sales price. So why did the average sales price drop? The Government. In 2009, our government offered a tax rebate for first time homebuyers (virgins). This, plus the abundance of lower-priced homes skewed the average downward, ultimately lowering the average sales price. Therefore, we have been studying the influx of first-time home buyers in the market. Why are they buying right now?

1. Interest rates - rates remain extremely low and allows otherwise unqualified buyers to purchase homes in this market
2. Prices - prices are extremely affordable and lower than they have been in years
3. Tax credit - the governmental intervention and tax credit has incentivized buyers and made it possible for some buyers to have the necessary cash funds to purchase homes

Are you interested in selling your home right now? With more and more buyers entering the market because of the extended and expanded tax credit, demand continues to increase … and supply is still on the decline. What this means is that there are MORE buyers wanting homes and LESS homes from which to choose (i.e., less competition when selling to even more buyers!).

NOTE: While this is great news for most of our sellers, we must also keep in mind that the overall market is still down over the past few years. So, if you bought your Austin home in the past few years and are selling it today, your home is most likely worth less than what you paid for it - not worth more. That means you will not be selling for a profit but for a loss. To learn more about pricing your home, read Krisstina’s article, “Are You Still Living In A Bubble“.

What Is My Home Worth? Want to get a good idea of what your home is worth … and find out right now online? Check out our Market Snapshot for an analysis of the value of your home.

• BUYERS: Interest rates remain low. Pricing remains affordable. Sellers who have their homes on the market right now are REAL sellers (why else would anyone put their home on the market when the grass is dead, it is 20 degrees outside, and the holidays and new year capture us all?). Are you interested in buying and taking advantage of the Housing V? Take these steps to own the home you are dreaming of:

1. Choose a highly-qualified and accomplished real estate professional: Call 512.892.9473 to learn how to choose your Austin real estate agent
2. Learn about your Buying Power: Call us at 512.892.9473 so we can put you in touch with our mortgage banker, Kristin Carroll.
3. Begin touring homes with your GoodLife agent and choose your new dream home!

“Stop the car, honey … look at that house. I wonder what it’s worth?!?” Does this ever happen to you? Ever wonder what that house is worth? Find out now: What’s That Home Is Worth.

Sales Closed by Month (Demand)

After the blip on the screen for fall 2009, we return to your regularly programmed graph. As we note, the number of sales per month has returned (at least momentarily) to the historical seasonal decline. If our graph and buyers’ behaviors mimick history, December should prove to increase sales a bit over November.

Active Listings (Supply)

Shocking! No, wait. This is completely predictable. Inventory falls as the leaves do. Once all the leaves have stopped falling, so does inventory. What does this mean? If you are thinking of selling in the next 12 months, you may want to consider now as a perfect time to put your home on the market. You will have less competition and more demand for your home … just make sure you get expert help from qualified real estate professionals to design a thorough strategy to get the most amount of money in the least amount of time.

Average Sales Price

It appears that the average sales price has leveled off after a very exciting and turbulant ride earlier in 2009. We continue to hover around $240,000 as an average sales price, and barring any new legistlation, natural disasters, or single-digit temperatures (almost got there in January), prices should remain relatively stable moving into the new year.

BTW, We do have very specific data for every price range and area of town. Want specific data pertaining to your neighborhood or your own home? We have it! Please let us know if you would like a neighborhood-specific analysis by emailing us at experience@goodlifeteam.com or calling us at 512.892.9473.

Simple Summary

Want to sell your house more quickly than your competitor?

Get really good help from proven professionals

and

Price your house accordingly.

The data provided to create these graphs are available to you by FREE subscription to our monthly update service.  Please email us experience@goodlifeteam.com to receive your monthly update. Or, catch the wave and follow @GoodLifeTeam on Twitter.

My message is one that I think is critically important to Brokers, agents and consumers alike. For all, real estate of the future will look much different than real estate of the past. Beyond the change in the economy - there has been a fundamental shift in consumer buyer behavior and how we, as consumers, make choices. And this shift will fundamentally change the way that you interact with your Austin real estate agent. The good news - I see the real estate brokerage of the future putting you, the consumer, squarely back in the center of the transaction.

Technology-Centric & Customer-Obsessed

What do I mean by that? Well, as I mention in my recent interview with Inman News, Real estate is not immune to the fundamental shift in consumer behaviors and expectations. If real estate agents and brokers are going to thrive in this new market, they must be technology-centric and customer-obsessed. Brokers must offer their agents leading technologies, fundamental and specific marketing technology-based strategies and execution, back-end support, quality control and performance measurement in order that the real estate agent has the means to offer you what you should expect in today’s web-based market place. Sadly, most brokers, and their agents, are neither technology-savvy nor customer obsessed. As a result, most buyers and sellers today do not think they are getting an equivalent value for the price they pay their agent and the agent’s broker. Yes, it’s time to demand more from your real estate agent. Marketing and selling your Austin home requires exposure beyond just the MLS. Finding your Austin home requires knowledge beyond being able to search up a 3 bedroom/2 bath in South Austin.

All Agents are not the same

Keep in mind, if you are thinking about buying or selling in the near future, who you hire matters. ALL AGENTS ARE NOT THE SAME…and the gap is getting even wider. Choose wisely. If it isn’t the GoodLife Team, make sure that your Austin real estate agent is technology-centric and customer-obsessed. And that they can demonstrate both. Look at their website. Do they blog? vlog? Are they using social media to assist you in selling your home? How? Do they answer their phone or do you have to leave a message? How long does it take them to call you back? These are just a few questions to help you start noticing the differences in agents.

Helping you, the customer, is a privilege

I am grateful, daily, for the trust you put in me and my company to help you with your most important asset. It is a privilege to be able to serve you. As I told Inman, ‘I see that people at the top of this industry are so far removed from the public and their needs, as well as the needs of their agents.’ This ultimately causes them to lose sight of you, the customer, and trickles down through the organization. It’s too easy for these big box brokers (as I like to call them) to treat you like a dollar sign. Moving into the future, I do not think you will tolerate this. I invite you to read my interview with Inman News in it’s entirety at http://glt.bz/inman. I will continue to lead the charge in building the GoodLife Team to be the Real Estate Brokerage of the Future and NEVER LOSE SIGHT that I do it all for you, my customers.

As an end to this blog-I would like to ask …. As we move into the real estate world of the future, what would like to see differently in terms of what we as an industry offer you, a home buyer and/or seller?

Single Family Monthly Graphs

Note to readers: The Wise Assessment is posted on the first day of every month. We post our stats later that other real estate companies because we want the most accurate numbers available…and this makes them worth waiting for! Other agents simply copy and paste graphs that they get from other sources and offer no opinions to the marketplace conditions. We track data in house and compare the market on a whole to what we produce internally in order to produce an opinion of the data and give our thoughts of what we are personally experiencing as a top company in Austin.

Keep reading for the written Wise Assessment and/or listen to our interpretations on our latest VLOG:

Overall Market Summary Report

The Wise Assessment

SELLERS: Supply (Active Listings) is decreasing, at a much slower rate than in recent months/years, and sales are increasing at an unprecedented rate - we are rapidly approaching the sales levels of the ‘good ole days’ of 2005 and 2006. With all else being equal, these two indicators suggest that sales price should also increase (demand increases, supply decreases, and price must increase). However, we have experienced yet another monthly fall in prices … why? What force would cause the fundamental laws of economics to seemingly betray itself?? One force that we have been studying is the influx of first-time home buyers in the market due to three specific factors:

1. Interest rates - rates remain extremely low which allows otherwise unqualified buyers to purchase homes in this market
2. Prices - prices are extremely affordable and lower than they have been in years
3. $8,000 tax credit - the governmental intervention and tax credit has incentivized buyers and made it possible for some buyers to have the necessary cash funds to purchase homes

With more and more buyers entering the market because of the extended and expanded tax credit, demand continues to increase … and supply is still on the decline. What this means is that there are MORE buyers wanting homes and LESS homes to choose from, reducing the amount of competition. If you have been thinking about selling your home, now might just be the best time.

NOTE: While this is great news for most of our sellers, we must also keep in mind that the overall market is still down over the past few years. So, if you bought your Austin home in the past few years and are selling it today, your home is most likely worth less than what you paid for it - not worth more. That means you will not be selling for a profit but for a loss. To learn more about pricing your home, read Krisstina’s article, “Are You Still Living In A Bubble“.

What Is My Austin Home Worth? Want to get a good idea of what your home is worth … and find out right now online? Check out our Market Snapshot for an analysis of the value of your home.

BUYERS: Interest rates have just taken another dip, sales prices remain low, and this means that your mortgage payments will be lower now than in the past. Buyers should definitely take heed of the message above to sellers: there are more buyers looking to buy fewer homes. What this means to you is that you must be pre-approved with a mortgage banker before you start looking for homes and be prepared to write an offer. Homes are staying on the market for shorter durations and we are experiencing many multiple offers on our most desired Austin homes for sale. Need an accomplished and trusted mortgage banker to help find you a loan? Contact us to get in touch with Kristin Carroll, our partner in the home lending business.

“Stop the car, honey … look at that house. I wonder what it’s worth?!?” Does this ever happen to you? Ever wonder what that house is worth? Find out now What That Home Is Worth.

Property Virgins (aka First-time Homebuyers): Did you miss the great opportunity to take advantage of the $8,000 tax credit? GREAT NEWS: The tax credit has been extended … so you didn’t miss this unique opportunity to take advantage of your very own stimulus package! Want to learn more about the extension and what it means to you? Read Krisstina’s article about The First Time Home Buyer Extension or click here to chat online with one of our specialists now.

Sales Closed by Month (Demand)

This has never happened … at least in the 12 years I have been in real estate. We are living in a time that sales are increasing in the fall; historically we see the sharpest decline of sales all year during this time. As noted above, there are 3 factors we are attributing to this:

1. Interest rates - rates remain extremely low and allow otherwise unqualified buyers to purchase homes in this market
2. Prices - prices are extremely affordable and lower than they have been in years
3. $8,000 tax credit - the governmental intervention and tax credit has incentivized buyers and made it possible for some buyers to have the necessary cash funds to purchase homes

Active Listings (Supply)

We are entering a season when demand for homes traditionally decline to an annual low, so sellers decide to wait for spring to put their home on the market. However, sales are way up. Inventory is being absorbed at an increasing rate by the increase of buyers in the market. Supply is declining. If you are thinking of selling in the next 12 months, you may want to consider now as a perfect time to put your Austin home on the market. You will have less competition and more demand. That being said, you will still want to obtain expert help from a qualified real estate professional who can design a thorough strategy to get you the most amount of money in the least amount of time.

Average Sales Price

If we worked and lived in a vacuum where there was only one product, current supply and demand would force the sales price to increase. However, since we have a very broad range of product (low-income housing to lakefront mansions) the rate of sale of the different products affects the average sales price. Since we have had a government incentive for first time homebuyers, lower priced homes have sold very rapidly this fall. Because of this, the average sales price has declined.

In fact, last month we sold 3 homes for full price with multiple offers…before they ever hit the market! Interestingly, they all were between $150,000 and $225,000.

BTW, We do have very specific data for every price range and area of town. Want specific data pertaining to your neighborhood or your own home? We have it! Please let us know if you would like a neighborhood-specific analysis by emailing us at experience@goodlifeteam.com or calling us at 512.892.9473.

Simple Summary

Want to sell your house more quickly than your competitor?

Get really good help from proven professionals

and

Price your house accordingly.

The data provided to create these graphs are available to you by FREE subscription to our monthly update service.  Please email us experience@goodlifeteam.com to receive your monthly update. Or, catch the wave and follow @GoodLifeTeam on Twitter.