Local ATX Living!

Austin Area Market Statistics - April 2010 - Tax Credits Drive Pending, Closed Sales

Here's a quick review of the Austin MLS area market statistics for April 2010.  The most striking number here is the increase in year to year pending sales.  April 2010 saw a drastic rise - over 65% - compared to April one year ago.  This is without question related to the expiration of the first time home buyer and existing home buyer tax credits.  The tax credits expired on April 30.  The month also saw a strong closing rate with over 2,000 homes closing, a 21% increase.  It is an indication of buyers taking early advantage of the tax credit and historically low interest rates.

While the number of new home listings increased a healthy amount, I would expect to see the area market maintain a balanced inventory (around 6 months or so).  While some niche markets may favor buyers over sellers and vice versa, the area as a whole has maintained a healthy number of listing inventory considering the state of the national home market.  Austin continues to lead the way toward a recovering housing market. 

I would expect to see the number of pending sales level off to more normal rates during the summer months.  We should see a spike in closed sales in both May and June, as the homes that contracted prior to the tax credit deadlines are completed.  The big question on many people's mind is whether or not the tax credit will cause a lull in the market.  The end of spring and beginning of summer usually see an uptick in market activity.  While the numbers on paper may show a drop off, the reality is that the summer market should continue along its normal trend.  Talking with other Realtors in the area, it does not seem that buyers have slowed in their searching for a new home. 

How the summer months will fare remains to be seen.  Informed buyers and sellers are aware that interest rates remain at historical lows with the expectation that they will go up by the end of the year.  How much and how soon we do not know.  However, the opportunity to buy and/or sell a home is as good in the Austin area as it is anywhere.  If you have questions regarding this information, or in general about the area, I encourage you to email me!

Battle Bend Springs - South Central Austin Community  - Austin, TX 78745   

Battle Bend Springs is a subtle community located in the heart of south central Austin.  Located snuggly between Ben White (Hwy 71) and Stassney just east of South Congress, most passers-by never even realize that it's there.  My business partners recently listed a home for sale in the community, and I myself didn't know much about it until then.  What I've come to find is a delightful, tight-knit community in the heart of Austin.  It's funny that such a neat area can go relatively unnoticed.  Driving through the neighborhood this time of the year, you'll see plenty of homes with bluebonnets in full bloom!

I get the impression that many of the residents of Battle Bend Springs would like nothing more than to keep it a "secret".  Taking a quick glance at the market stats, there are currently only 4 homes for sale in the community, and only 7 have sold in the last year.  Logic tells me that 1) homes for sale don't come up too often, and 2) residents who do live here have done so for a long time.  The owners' of the home we listed for sale spoke highly of the Battle Bend Springs home owners' association.  It's a voluntary group that holds neighborhood functions often in Battle Bend Park (right off South Congress).  The community HOA is having an Easter egg hunt this Saturday for all the children in the neighbohood!  As you can imagine, it's no surprise that there is a great sense of community here; take  drive through and I bet you will see neighbors taking afternoon walks and others working in their yards and gardens. 

Most of the homes in the area were built in the 1970's.  A majority are one story homes ranging from 1200 square foot to 1600 or more.  Another great feature of the area is the large established oak trees.  They line the streets, and anyone who has spent time in this area knows nothing provides better shade in the spring and summer than a tall oak.  Over the last years (March 2009-2010) the homes for sale have range from the $180's to $230's.  When you consider the location of Battle Bend Springs, these homes present a great opportunity to live near downtown without paying downtown prices.  A straight shot down South Congress and you're in the heart of the business district in less than ten minutes.  Most homes in the popular 78704 area (just north of Ben White) start in the $230's and shoot up well in the $300 range and higher.  Just food for thought...

If you're looking for a home in the area, I encourage you to take a stroll through this great neighborhood.  I'd be happy to provide you with a free updated market report about homes for sale.  All you have to do is send me an email or give me a call! 

Austin, TX Market Statistics - An Overview of Residential Real Estate in February 2010

I reviewed the market statistics from the Austin Board of Realtors for February 2010 (we Realtors have access to a whole slew of market details).  The stats for March should be out in a few weeks, so I wanted to share the info from last month and some thoughts.  The chart belows gives a comprehensive comparison of multiple factors in the residential market including new listings, pending listings, solds, days on market and much more.  Take a look here:

It can be a little confusing to read at first.  These market statistics cover the entire Greater Austin area.  It includes both rural and urban areas from Georgetown to San Marcos and Hutto to Blanco/Burnet County.  With that in mind, the numbers start to show a positive outlook for what's happening in the market.  Active listings have increased over 13% from this year to last year in February.  This can be attributed to both the first time buyer and current home owner tax credits.  Also, home owners may be looking to list their homes to take an early advantage of the typically higher activity markets of the spring and summer.

The figure that really jumped out was pending sales.  It was a 40% increase!  This without a doubt is directly influence by the April 30 deadline for the tax credit.  Closed sales remained consistent with last year.  These are pendings from late December and January - a time when the market tends to be a bit slower.  It'll be very interesting to see what the numbers for pending and closed sales will be for March.

Median sales price and average sales price each took a minor dip from last year.  Again, this is an indicator of many first time buyers in the market who tend to purchase lower priced homes thus lowering the median and average sales price.  A very interesting figure for both buyers and sellers is the over 14% drop in average days on market.  With 6.5 months inventory, we're very much in a neutral or balanced market.  Some areas lean more toward a sellers market while others favor buyers.  As a whole, this shows that as more homes are coming on the market, there is a strong wave of buyers to absorb the increase.  Homes are being sold quicker on the whole, and the closer to list price. 

I'll be sure to post the results for March as soon as they are available.  A few things to take away are it is clear that the tax credits along with lower interest rates are having an impact in the market and there is a clear increase in activity from both buyers and sellers.  The market as a whole isn't leaning strong in one direction in favor of buyers or sellers.  Again, it comes down to the individual neighborhoods and areas.  I'll be paying close attention to see what impact following the tax credit deadlines.  The market statistics for the Austin, TX area give a postive outlook.  With cutoffs for government incentives looming, the activity should continue along the typical spring and summer activity levels.  Even a small drop off in activity following the deadlines shouldn't affect the overall outlook for the market.        

If you have questions regarding this information, or about buying/selling a home in the area, please feel free to email me.  I appreciate your comments and thoughts! 

Real Estate Market Statistics for September 2009 – Austin, TX         

I have put together graphs of market statistics for the month of September 2009.  It may seem odd to post last month’s information; however, this information was recently released from the Texas A&M Real Estate Center.  I segmented most of the information into geographical areas.  You may or may not know that the Austin Board of Realtors divides the entire region it serves into 25 Multiple Listing Service (MLS) areas.  I have simplified it into more general geo-areas.  The downtown area, for instance, includes proper downtown Austin along with the area south of Town Lake to Ben White (78704 area code).  These graphs are meant to give a general overview of the market statistics. 

This graph above shows an overview of the total sales of September by property type.  It should be noted that leases and commercial leases are exactly that – leases.  It is important to include rentals in the market statistics because rental occupancy and rates are as high as they have been in decades.  I’m sure most current residential investors are reaping the benefits of the these rental rates.  Another nugget to keep in mind is the commercial sales/lease market statistics is not 100% accurate.  This is because many commercial transactions are not listed in the MLS.  Overall, I find this info interesting, so I wanted to include it in the stats.

These market statistics above show a three overview of the 3^rd quarter from 2007-2009.  I included this because the end of the third quarter of 2007 is when the initial shift occurred in the market.  You can also see the yearly slowdown in transactions toward the end of the summer going into the fall.  However, September 2009 saw an increase in sales compared with August 2009 and September 2008.  The $8000 first-time home buyer tax credit played a significant role in this sales increases.  I think we will see the same results for October and November 2009.

Below are graphs for the Austin City and Great Austin area market statistics.  I divided them into separate graphs for two reasons:  1) the graph would have been way to big to post and 2) I like it better this way.  As I mentioned earlier, the regions are broken down by geographical area.  Some areas could be grouped in multiple regions.  It is important to keep this in mind, especially when looking at the active listings.  While it may appear that the number is active listings is high, the market as a whole is closely balanced.  We actually saw a decrease in the number of active listings in September this year than in the same month a year ago.  With the tax credit combined with the usual end of the year activity, we could very well see a strong ending to 2009.  

I would greatly appreciate your comments or feedback.  If you would like more specific market statistics for a neighborhood, subdivisions, etc., I would be happy to provide them.  Please feel free to contact me directly at the email below:

Will@localaustinrealestate.com