Home for sale Austin- August News
The numbers are out for June and it was a record breaking month. With over a billion dollars in real estate sold in one month, this marks the first time in history that this has ever happened in Austin, according to this Austin Business Journal article.
The article also points out that Days On Market are up; 3 days more than the year before and inventory for lease is up 14% in the last 12 months, presumably from the flood of new units that have hit the market.
The interesting thing about the data below is the average price per square foot drop from April to June. What exactly does this mean? It means that what's driving these amazing sales lately are the lower priced properties. They don't mention this in the article, but if you dissect the upper range of properties here is what you will find.
$500,000 to $1,000,000
SFR homes sold in June of 2014 Average Days on Market 71 $216 a foot $657,563 # of sales 301
SFR homes sold in June of 2015 Average Days on Market 74 $228 a foot $649,871 # of sales 371
$1,000,000 to $1,500,000
SFR homes sold in June of 2014 Average days on Market 141 $319 a foot $1,220,323 of sales 369
SFR homes sold in June of 2015 Average days on Market 138 $321 a foot $1,191,617 of sales 358
$1,500,000 to $2,000,000
SFR homes sold in June of 2014 Average days on Market 145 $364 a foot, $1,705,512 # of 17 sales
SFR homes sold in June of 2015 Average days on Market 215 $351 a foot $1,756,145 # of 12 sales
SFR - Single Family Residential
So this is using a large data pool (over 300 homes in each category) all over the Austin area MLS. What I believe this tells us that is if you bought a home between $500,000 and $1,000,000 there is a high likelihood that your home has appreciated very little.
If you have a home worth $1,000,000 to $1,500,000 then there is a high likelihood that you saw almost no appreciation at all. And if you sold a home from $1,500,000 to $2,000,000 there is a good chance that you lost a little bit of value from June of 2014 to June of 2015.
What's important to note is that real estate can literally vary street by street and area by area. The $500K to $1M range in central Austin, for instance, showed great appreciation in comparison to the outer areas such as Round Rock and Georgetown. The above comparison is using the entire MLS area. But the point is, that higher priced properties are NOT appreciating as much as they were and I believe we are going to see them stall even more as fall arrives. Don't let the news mislead you. They are leaving out very important facts that you will get from me.
If you would like to see how the value in your neighborhood has fared over the last 12 months, we'd be happy to perform this exercise for you. Just reply to this email and we'll be in touch!