And We Are Just Getting Warmed Up!

I hear all of these words from our clients as we begin speaking with them about buying or selling a home in Austin right now. There is so much noise in the market about the housing industry, interest rates, foreclosures, government intervention, falling panels of glass (sorry, couldn’t help that one), and the list goes on and on. Where is all this fear coming from?

It seems that somewhere along the way we stopped listening to the experts and placed all our trust in the talking heads of the media or our friends and family members who mean well but really don’t know what they are talking about. So when did we all stop listening to the experts who really have the knowledge of what is actually happening right here in our back yard? When did we all fall prey to the fear that the media feeds us…which is all for the sake of getting us to watch their tv station or read their papers so they can sell more ads?! When did we decide that our friends and family are experts in everything in life that pertains to us?

I’m not really sure we have the answers to the questions, but don’t you think it is time for us to stop placing all our trust in the people who don’t really know … and begin listening to those that we assess have the knowledge, expertise, experience and ability to truly help us?

If your answer to the aforementioned question is a resounding, “YES!”, then please read on about the facts of our local housing market and our professional interpretations of the current situation … and ultimately how it affects YOU and YOUR situation.

The Wise Assessment

As of the end of May, the single family housing market sales are down 8% over May of 2010. The average price is up 11% over May of 2010. The inventory, or number of homes available for sale in Austin is at its lowest point since 2007. Interest rates are lower now than they have been in over 50 years. So, what does all of this mean?

If you are buying a home, what this means is:

• There are fewer homes available for you to choose from
• You need to be prepared to compete with other buyers to purchase a home.
• Right now the very best homes (in condition, appearance and price) are receiving simultaneous offers from multiple buyers to purchase them.
• If you do not know about these homes as soon as they come available on the market or do not have your financing in order, you will miss out on the best opportunities in Austin.

If you are selling a home, what this means is:

• You have less competition to sell your home, but it is still critical to prepare your home for sale with professional advice, quality repairs and updating, and tasteful staging and design.
• The pricing of your home must remain very competitive. There are inherent dangers in overpricing your home ‘just to see if you can get it’, so make sure you ground your pricing strategy with relevant comparable data in your neighborhood.
• The promotion (marketing, advertising, exposure) of your home must be superior to everything else in your neighborhood.
• If you are able to successfully execute on these three strategies, you are much more likely to receive more interest in your home and ultimately the very best price.

Following you will find the details of the Austin real estate market and the behavior of the buyers and sellers in the market over the last 5 years.

Historical Data

Austin Home Sales – Moving Average

As you will note, we are experiencing the seasonal cyclical shift in the market right now. The number of homes sold (demand) is on the rise and we can expect this to continue its upward trend for the remainder of the summer and into the fall.

Austin Average Sales Price

We note that there is a seasonal cyclical shift in the average sales price in the Austin real estate market, yet we are experiencing a greater increase in the prices than we have seen in the past 5 year. Once we investigate the other factors of the market (supply and demand), it certainly makes sense that prices have increased as supply has remained very low.

Austin Sales Closed by Month (Demand)

With decreased supply we find a decreased number of sales in Austin. We certainly do not find this to be a great concern right now as we are very near the past 4 years of sales…but if the upcoming sales at The GoodLife Team are any indication, we can expect this to continue to increase throughout the summer. Stay tuned!

Austin Active Listings (Supply)

Fewer Austin homes are available for sale now than we have seen in the past 4 years. At The GoodLife Team, we have fewer homes on the market now than in the past 4 years as well, but that is beginning to change. We are preparing more homes for the market now than we have since last year, and those homes are selling at record pace. The average time our homes are on the market in central Austin is 13 days. Let me repeat: we are selling central Austin homes in 13 days right now. What this means is there is ample demand for beautifully prepared, well-priced and aggressively marketed homes.

Still don’t know what all this mumbo jumbo means? We are here to help.

Offers of Help

What Is The Future Value of My Home? Want to get a good idea of what your home will be worth in the future … and find out right now online? Check out our Market Snapshot for an analysis of the value of your 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 now What That Home Is Worth.

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.

Austin Real Estate Sales are UP 47.3%

in March over February of this year

However, sales are down 9.7% over last year

Property Type	Sales	% Change Year Ago	Dollar Volume	% Change Year Ago	Average Price	% Change Year Ago
Single Family	1,597	-10%	$396,389,773	-5%	$284,209	5%
Townhouse/Condo	152	-30%	$32,250,608	-24%	$211,879	8%
Farm/Ranches	46	31%	$15,457,472	37%	$336,032	4%
Multifamily	41	-7%	$7,045,727	-2%	$171,847	5%
Lots	112	32%	$11,111,072	66%	$99,206	26%
Commercial	15	-25%	$7,903,800	63%	$526,920	118%
Lease	1,174	9%	$1,577,856	17%	$1,344	7%
Commercial Lease	8	-56%	$8,432	-57%	$1,054	-4%

In March there were 1,597 homes sold in Austin, down from 1,769 in March 2010 … a 9.7% drop in sales. However, the average and median sales prices are up over those in 2010, indicating “long-term strength in Austin’s real estate market”, according to Judith Bundschuch, Chairman of the Austin Board of Realtors.

The number of active listings (homes) currently on the market has dropped to 3,480 from 4,170 last year; there are almost 700 fewer homes available for sale this year than last.

So, what does this all mean?

Let’s take a walk through history for a moment to remember what happened last spring: The government decided to artificially inflate the real estate sales market by offering ‘free’ money to buyers through a tax credit. Sales temporarily spiked in response to the tax credit and later cratered in June as soon as the credit expired. I provide this brief history to explain why last year ‘seemed’ so much better than this year, if you only look at the numbers.

This year we have fewer homes available to sell, and that means there are only two responses that the market can have:

1. Sales prices spike because of the scarcity of homes
2. Sales decline because of the scarcity of homes

How is this relevant to you?

The Wise Assessment

If you are Selling your home:

• You have fewer homes to compete with.
• Buyers have become accustomed to being spoiled with professionally prepared and staged homes – be sure you are competitive with your neighbors!
• If your home is priced competitively, in great condition, staged well, and marketed professionally….your home has a better chance of selling now than it did over the past 2 years, and likely for more money. In fact, we are selling homes in under 30 days on average.

• Know your buying power, and have your lender prepare a letter stating what your buying power is … the banking industry is in flux, and you MUST have a great relationship with someone who can facilitate the loan.
• Know exactly what you want to buy, and have your Realtor actively and aggressively searching for your home.
• Be ready to write an offer on site, at the home you want to buy. Make sure your Realtor is prepared with the latest technology and the most comprehensive and specific knowledge about the neighborhood.

1. Know the market and the details of the specific neighborhood you are in or seeking to buy a home in … or hire the best in the neighborhood.
2. Be prepared. If you are selling, prepare your home for the market. If you are buying, get your finances in order and have a loan in place.
3. Strike quickly. When you find a deal, buy it. Others will be right behind you to take advantage of what you delayed on, so be ready to move quickly.

Keep reading to see history…

Historical Data

Austin Home Sales – Moving Average

At the request of my readers, I have produced a moving average graph so we can track Austin’s sales history. Most of my teammates here at The GoodLife Team look at this and say, “Yep, I remember that time.” To which I respond, “I cannot wait to show you what the next 2 years will look like!”

Sales Closed by Month (Demand)

Is this indicative of a great sales season, or is it a premature assessment that this year will follow the seasonal trends of years past? Only time will tell, but based on many market factors, it looks like Austin is set for a very healthy year of home sales.

Active Listings (Supply)

This, quite honestly, is the one graph that surprises me this year. It is rare to have so few homes on the market for buyers to choose from, and I am struggling with the reasoning behind the scarcity of home sellers in the market right now. Please check in next month to verify my predictions, but I do not anticipate a large influx of homes on the market in April either.

Still don’t know what all this mumbo jumbo means? We are here to help.

Offers of Help

What Is The Future Value of My Home? Want to get a good idea of what your home will be worth in the future … and find out right now online? Check out our Market Snapshot for an analysis of the value of your 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 now What That Home Is Worth.

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 http://www.goodlifeteam.com/austin-real-estate/austin-market-statistics/austin-real-estate-sales-are-up-47-3/feed/ 0 http://www.goodlifeteam.com/austin-real-estate/austin-market-statistics/austin-real-estate-sales-are-up-14/ http://www.goodlifeteam.com/austin-real-estate/austin-market-statistics/austin-real-estate-sales-are-up-14/#comments Wed, 02 Mar 2011 20:40:45 +0000 Goodlife http://www.goodlifeteam.com/?p=5624 WOW! GREAT NEWS! WHO COULD HAVE PREDICTED THIS? We did… Overall Market Summary Report Property Type Sales % Change Year Ago Dollar Volume % Change Year Ago Average Price % Change Year Ago Single Family 975 14% $245,504,025 16% $251,799 2% Townhouse/Condo 91 -28% $15,613,598 -18% $171,579 14% Farm/Ranches 25 25% $7,805,125 22% $312,205 -3% [...]]]>

WOW! GREAT NEWS! WHO COULD HAVE PREDICTED THIS?

We did…

Overall Market Summary Report

Property Type	Sales	% Change Year Ago	Dollar Volume	% Change Year Ago	Average Price	% Change Year Ago
Single Family	975	14%	$245,504,025	16%	$251,799	2%
Townhouse/Condo	91	-28%	$15,613,598	-18%	$171,579	14%
Farm/Ranches	25	25%	$7,805,125	22%	$312,205	-3%
Multifamily	36	38%	$6,130,584	45%	$170,294	4%
Lots	74	-1%	$6,843,668	-22%	$92,482	-21%
Commercial	14	75%	$2,942,688	4%	$210,192	-41%
Lease	1,193	6%	$1,519,882	14%	$1,274	8%
Commercial Lease	15	36%	$26,310	81%	$1,754	33%

In November, I reported that The GoodLife Team was writing more contracts for our buyers to purchase homes than ever before…and yet the number of sales in November was DOWN 20% over the previous year.

With the increase of the number of clients we had actively looking for homes and writing contracts (many of which were on the homes we were marketing), we predicted that the overall market would see an increase in the number of sales in December, January, and the rest of the first quarter of 2011.

So, what does this mean?

What this means is that we track 2 separate and very different sets of numbers in our monthly reports to show you 2 separate and very different reports:

1. History – when we report the number of Sales, the Average Sales Price, and the Active Listings, what we are reporting to you is what has already happened. It is History. These are all statistics that help us understand what has just occurred, but in and of itself cannot help us understand what is happening right now or what might happen in the near future.
2. Current Activity – when we report the number of buyers and sellers that we are representing in the market right now, what we are reporting to you is the current standing of the market and what buyers and sellers are doing right now. These are activities that we study to report to you the current status and health of the market and what we predict will happen in the future with Sales, Average Sales Prices and Active Listings.

So, What Is Happening RIGHT NOW?

• We have increased website traffic.
• We have increased phone inquiries on our properties.
• We have increased showings on all of our properties.
• We are receiving multiple offers on some of our clients’ homes.
• Our team members are busy working with more buyers now than in the past 2 years.

• Austin Real Estate sales continue to improve.
• There are more buyers looking for homes and writing offers more quickly.
• Attractive, well-maintained, competitively priced and aggressively promoted homes are garnering more attention from buyers, and are often receiving multiple offers (and selling for more than asking price).

How is this relevant to you?

The Wise Assessment

If you read any of my posts, I will likely sound like a broken record here.

If you are Selling your home:

• You are likely already experiencing increased showings of your home.
• If your home is priced competitively, in great condition, staged well, and marketed professionally….your home has a better chance of selling now than it did over the past 2 years, and likely for more money.

• You will need to be prepared to act quickly. Seriously.
  • Know your buying power, and have your lender prepare a letter stating what your buying power is.
  • Know exactly what you want to buy, and have your Realtor actively and aggressively searching for your home.
  • Be ready to write an offer on site, at the home you want to buy. Make sure your Realtor is prepared as well.

The temperatures are rising, and so is the urgency of many buyers. Are you prepared?

To Summarize:

1. If you are thinking of selling your home, hire an expert. Know what you need to do to prepare your home for a competitive market, and find out what it really takes to sell a home in today’s environment. The days of signs, lockboxes, and MLS are dead. So, how will you differentiate your home to attract more buyers, a higher sales price, and a shorter time on market?
2. If you are thinking of buying a home: be prepared and have a very aggressive and knowledgeable Austin Realtor by your side.

Keep reading to see history…

Historical Data

Austin Home Sales – Moving Average

At the request of my readers, I have produced a moving average graph so we can track Austin’s sales history. Most of my teammates here at The GoodLife Team look at this and say, “Yep, I remember that time.” To which I respond, “I cannot wait to show you what the next 2 years will look like!”

Sales Closed by Month (Demand)

Uh-oh. Here come the buyers! In the last quarter of 2010, we experienced an increase in the number of sales, and January of 2011 was no different. In January, there were 975 homes sold in Austin, which was a 13.8% increase over the number of sales in January 2010.

Active Listings (Supply)

This always happens in the holiday season, and is never a surprise. Who really wants people coming through their home during the holiday season, even if they are really looking to buy RIGHT NOW? Believe it or not, this is exactly why we were very busy in December and January. We put over 30 homes on the market over the holiday season for our clients…and sold their homes while our competition waited for the Spring.

Still don’t know what all this mumbo jumbo means? We are here to help.

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 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 now What That Home Is Worth.

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

As the New Year begins, it seems a good time to catch up on the market happenings of the past year in our neighborhood.  Just a quick recap, how does East Austin compare to the rest of Austin, TX?

• Your home needs to be the best product in the neighborhood
• Your price needs to be competitive
• Your marketing needs to be exceptional

• You have a lot of inventory to choose from
• Make an offer based on local market history
• Don’t wait for this trend to continue

Both of these numbers go up a bit if we consider ONLY the past 6 months of sales.  Why?  Fewer homes or condos sold in East Austin in the last half of the year.  One reason may be the First-time home buyer tax credit, which artificially drove up numbers in the beginning of last year.  So just using post-tax credit numbers, we have 9.1 months of condos/townhouses and 11.6 months of houses to sell in East Austin.

So what we have here is a generally balanced market city-wide, but still a fairly bloated market on the east side.  There are more homes to sell in 78702, and buyers are wanted!  Look at these graphs comparing Austin against East Austin for months of inventory left to sell (for homes & condos over the past 12 months):

Austin in general:

East Austin:

On the East side, inventory is increasing faster than homes are selling, compared to the entire city. Austin seems to be a balanced market over all, but not so in East Austin.  Buyers are wanted!

Austin Real Estate Statistics

1. If you are thinking of selling your home, do it now. Most people think that the holidays slow down real estate sales. This is not true. In fact, we always experience an increase in the number of sales in November/December. In fact, if everyone else is taking their homes off the market for the holidays, doesn’t it make sense that you would want to put your home on the market? When you have less competition (scarcity), you have a better chance of selling your home. Buyers do not stop looking for homes because of the season.
2. If you are thinking of buying a home, you still have the power in the process. A buyer’s market means that this market is controlled by YOU. So, go find what you want and negotiate terms that are favorable to you. Now. Go. What are you waiting for?

National Real Estate Sales are Up 7.6% | Austin Real Estate Sales are Down 1.8%

1. Read Krisstina’s article “Be Greedy When Others Are Fearful”.
2. Don’t sell your home unless you have to or unless you want to take advantage of a great ‘move-up’ time.
3. Buy a home and take advantage of the low rates and depressed sales.
4. Take a look at how the GoodLife Team is designing better statistics-reporting mechanisms in order to capture current buyer activity and better predict the market.

• Relocation – they have to, as they are relocating for work
• Job Loss/Hardship – they have financial reasons to avoid the monthly burden of a mortgage
• Move-Up – they realize this is the very best opportunity they have to take advantage of a down market and buy a larger, more expensive home and keep their payments low

• Little to no cash
• Too-tight lending conditions
• Insufficient Credit
• Don’t realize they can buy
• Fear

Many of our clients have asked us – how is the market?

13,567 – This is the current number of Austin homes (condos, houses, townhomes) on the market. Never has there been this many homes on the market in Austin…EVER. Sales flattened out earlier in the annual sales cycle  compared to every previous year since 2005. Interest rates are at historic lows. And yet, prices increased. Did we just break Economics?

• Are you selling your home? If you are currently selling or thinking of selling your home, please note that you now have more competition than you ever have. So is it a bad time to sell? Not necessarily. We are still successfully selling homes…that are very competitively positioned in the market.

• Repairs and updates – Find a great contractor – If there are improvements or repairs that need to be made to your home to compete…complete them before you put your home up for sale
• Staging – Hire a professional stager – Ever walk into a model house and feel right at home? The builder hired a professional stager, and you should too!

• Get pre-qualified with a COMPETENT Mortgage Bank – Make sure that your mortgage professional is tied directly to a bank. And please, save yourself unexpected costs, delays in closings, and major breakdowns ~ hire a local mortgage banker!
• Hire a knowledgeable buyer’s agent - Make sure that your agent is knowledgeable in the area of town that you are interested in. If they specialize in Manor, they may not know Cedar Park.
• Get educated - Ask your agent lots of questions. Not sure what to ask? Click here to get some great questions.

• 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.
• 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 now What’s That Home Is Worth.
• 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.