The Gibbs Team

512-431-2403

Austin Area Real Estate Market

By

November 2015 Austin Real Estate Review

Infographic-November-2015-market-statsPOST

Austin-area home sales volume decreases in November while prices set record

Austin Board of REALTORS® releases real estate statistics for November 2015

AUSTIN, Texas – Dec. 21, 2015 – After increasing for five consecutive months, Austin-area home sales dipped four percent in November 2015 compared to the same month of the prior year, according to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR). This is only the second decrease in home sales volume for 2015 to date, with the first decrease occurring in May 2015.

Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “While November single family home sales volume decreased slightly compared to last year, year-to-date home sales volume continues to outpace 2014. With the Austin-area population exceeding two million over the summer, growth in Central Texas is showing no signs of slowing.”

According to the report, the median price for Austin-area single-family homes increased 10 percent year-over-year to $270,000 in November 2015, setting a record for the month of November. Also setting a record for November, average price increased 12 percent to $347,292 during the same timeframe.

New listings increased by one percent and active listings increased by three percent year-over-year. Additionally, pending sales increased by four percent. Homes remained on the market for an average of 54 days in November 2015, one day less than November 2014.

Monthly housing inventory remained unchanged year-over-year at 2.4 months. Housing inventory remains at 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.

“The Federal Reserve’s recent decision to raise interest rates is a sign of a healthy economy, and we’re fortunate that Austin has one of the strongest economies and housing markets in the nation,” said Mark Sprague, State Director of Information Capital at Independence Title Company. “Millennials—a large portion of Austin’s population—have never seen interest rates go above 10 percent, so some might be concerned about the impact higher interest rates will have on Austin’s housing market and economy. Even with this increase, however, interest rates are still among the lowest they have ever been, and we do not anticipate a significant impact on the Austin-area housing market.”

Cooper concluded, “It’s encouraging to see an uptick in pending sales, active listings and new listings as a sign of more homes entering the market. Sellers are taking advantage of competitive market conditions and if active listings continue to increase year-over-year, it could lead to a much-needed increase in the Austin-area’s housing inventory level.”

November 2015 Statistics

  • 1,814 – Single-family homes sold, four percent less than November 2014.
  • $270,000 – Median price for single-family homes, 10 percent more than November 2014.
  • $347,292 – Average price for single-family homes, 12 percent more than November 2014.
  • 54 – Average number of days single-family homes spent on the market, one day less than November 2014.
  • 2,095 – New single-family home listings on the market, one percent more than November 2014.
  • 5,703 – Active single-family home listings on the market, three percent more than November 2014.
  • 1,965 – Pending sales for single-family homes, four percent more than November 2014.
  • 2.4 – Months of inventory* of single-family homes, unchanged compared to November 2014.
  • $629,987,688 – Total dollar volume of single-family properties sold, eight percent more than November 2014.

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

Townhouses & Condominiums

The number of townhouses and condominiums (condos) sold in the Austin area in November 2015 was 180, a 10 percent increase from November 2014. The median price for condos was $216,750, which is one percent less than the same month of the prior year. These properties spent an average of 43 days on market, six days less than in November 2014.

Leasing

In November 2015, a total of 1,205 properties were leased in Austin, which is five percent more than November 2014. Properties spent an average of 42 days on the market, or four fewer days than in November 2014. The median price for property leases was $1,550 per month, a nine percent increase from November 2014. Active property listings increased by one percent compared to November 2014, reaching 1,726 listings.

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 Department of Public Affairs 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.

By

September 2015 Austin Real Estate Review

infographic-sept15POST

Austin Board of REALTORS® releases real estate statistics for September 2015.

AUSTIN, Texas – October 22, 2015 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), Austin-area single-family home sales and prices hit an all-time high for the month of September. Home sales increased by seven percent year-over-year to 2,603 home sales and median price increased eight percent year-over-year, reaching $258,000 in September 2015.

Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “While current demand bodes well for home sales throughout the rest of year, affordability issues continue to impact Austin-area homebuyers. Fortunately, we have two strong solutions on the November ballot to help increase housing affordability and support Central Texas infrastructure growth.”

On next month’s ballot, Proposition 1 would permanently lower the cost of homeownership in Texas by raising the homestead exemption from $15,000 to $25,000 for most homeowners and from $25,000 to $35,000 for homeowners who are disabled or over the age of 65. That change would mean a permanent property tax reduction of $125 per year for the average Texas homeowner. Additionally, Proposition 1 would create a permanent ban on real estate transfer tax, protecting Texas’ housing affordability in the future.

The Austin Board of REALTORS® also supports Proposition 7, which will bring increased funding for Texas transportation projects and ensure future sustainability of the state’s infrastructure by closing the gap on the $5 billion in transportation needs that go unmet each year.

“We need a combination of property tax relief, broader development of medium-density housing options, and funding for transportation projects to have a lasting impact on Central Texas affordability and infrastructure,” added Cooper. “Central Texas REALTORS® urge Austin-area voters to vote ‘yes’ on November 3 for both Proposition 1 and Proposition 7 to help ensure Texas is an affordable place to live and work in the future.”

According to September’s MLS report, the average price for Austin-area single-family homes increased five percent to $324,150 in September 2015.

New listings increased 11 percent to 2,860 listings and active listings increased by four percent year-over-year to 6,759 listings. In addition, pending sales increased nine percent to 2,391 single-family home sales. Homes remained on the market for an average of 47 days in September 2015, three more days than September 2014.

Monthly housing inventory remained unchanged compared to September 2014, staying flat at 2.8 months. Housing inventory remains at 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.

September 2015 Statistics

  • 2,603 – Single-family homes sold, seven percent more than September 2014.
  • $258,000 – Median price for single-family homes, eight percent more than September 2014.
  • $324,150 – Average price for single-family homes, five percent more than September 2014.
  • 47 – Average number of days single-family homes spent on the market, three more days than September 2014.
  • 2,860 – New single-family home listings on the market, 11 percent more than September 2014.
  • 6,759 – Active single-family home listings on the market, four percent more than September 2014.
  • 2,391 – Pending sales for single-family homes, nine percent more than September 2014.
  • 2.8 – Months of inventory* of single-family homes, unchanged from September 2014.
  • $843,762,450 – Total dollar volume of single-family properties sold, 13 percent more than September 2014.

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

Townhouses & Condominiums

The number of townhouses and condominiums (condos) sold in the Austin area in September 2015 was 269, an 11 percent increase from September 2014. The median price for condos was $220,250, which is eight percent more than the same month of the prior year. These properties spent an average of 40 days on market, unchanged from September 2014.

Leasing

In September 2015, a total of 1,593 properties were leased in Austin, which is 15 percent more than September 2014. Properties spent an average of 38 days on the market, or two fewer days than in September 2014. Active property listings increased by four percent compared to September 2014, reaching 1,937 listings.

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 Department of Public Affairs 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.

By

Why Real Estate Websites Give Bad Information

download

 

TEXAS IS A NON-DISCLOSURE STATE

Online property search websites offer a really convenient way for you to search for properties and gather some valuable information; like number of bedrooms, bathrooms, square footage, and price. But these online tools don’t always offer the best information and shouldn’t be counted on for the most reliable data.

Sites like Trulia.com and Zillow.com claim to offer site visitors instant property value information with the click of a mouse. What’s missing on all these sites is the human element. As convenient as it might be to point and click your way to a home valuation, it takes a real estate professional with the experience and knowledge of the area and market, to give a truly accurate market valuation on a property – especially in a market like Austin or Lakeway.

For example, below are three different properties sold and listed on Zillow and Trulia. Note the difference in price and then compare them to the approximate price derived from the actual MLS listing. (Texas is a non-disclosure state so we, as agents, are not able to publish the actual sell price.). When they compute their automated property valuations, they are pulling data from local taxing authorities, who are also in the dark about home selling prices. This typically results in under-valuation by tens of thousands (if not hundreds of thousands) of dollars.

Lake Travis home
Zillow – $830K
Trulia – $792K
MLS ~ $729K

Lakeway home
Zillow – $250K
Trulia – $144K
MLS ~ $240K

For whatever reason, Trulia is off on all three listings. Zillow estimates are more in line, however is only closely “accurate” with one of the three. These are national portals…

So while online search websites are fun and interesting to browse, remember that you’re going to want to call a pro to help you buy or sell at the right price.

Meanwhile, my mobile app is perhaps the best available for searching for properties near you. Text “kwgk09dt” to 87778!

By

2015 Housing Predictions

930A5923_4_5_fused (1)As the year draws to an end, 2015 housing predictions are already being calculated. Seems like we just started 2014 and here we are closing it up!!

Nonetheless, Realtor.com’s Top 5 Predictions are not all that shocking, but they are definitely good to know if you will be looking to buy or sell real estate in the upcoming year.

The entire article can be found at 2015 Housing Predictions if you would like to peruse what economic experts have to say in detail about the following list. But, for the shorter version…look no further.

The 2015 housing industry expected trends include:

1.     Mortgage Rates Will Head Back Up

2.     Millennials (ages 25-34) Will Set up House

3.     Builders Will Break New Ground

4.     Credit Will Continue to Be a Major Factor

5.     We’ll Close Out the Foreclosure Crisis

Basically, mortgage rates can’t stay low forever, but good credit will be the determining factor of whether banks will loan someone money because of continued stringent mortgage qualifications.

This just means that if you are thinking about buying a home in the near future, you must tighten up your spending, pay bills on time and straighten up any credit issues you currently have.

Moreover, with more millennials buying homes, builders will have to add inventory to keep up with the housing demands. The home building industry will be interesting to watch in 2015, as their greatest issues include shortages in labor and materials.

The best news is that the U.S. economy continues to strengthen and that helps people find jobs to pay their mortgages and in effect puts a halt to the foreclosure crisis we have seen in the past several years.

Obviously, every market is different and if you would like to know more about the Austin area real estate market, please contact Mary Lynne Gibbs at 512.431.2403 or austinluxurybroker@gmail.com. It would be an honor to earn your business!