According to the Austin Multiple Listing Service’s May, 2011 sales report that was recently released by the Austin Board of REALTORS®, even though the overall volume of single-family home sales decreased year-over-year by just over 8% to 1,891 units (from May of last year), the median price of Austin area homes sold increased by just over 4%. And that is definitely good news if you’re looking to sell!
And, there’s even more good news: Overall, 1,891 homes were sold in May - an amazing 15.5% increase over the 1,597 homes that were just sold in the Austin market in March of this year. It looks as though the effect that last years Home Buyers Tax Credit had on the normal sales cycle has finally worked its way through the system.
Judith Bundschuh, Chairman of the Austin Board of REALTORS®, had this to say about this month’s report:
“We expected to see a continued fluctuation of sales this month since May 2010 was the peak month for last year due to the home buyer tax credit deadline. What’s most encouraging, however, is that despite the decrease in sales volume, our real estate values have continued to appreciate, which indicates long-term strength in Austin’s real estate market.”
Since
March of 2010, the median price for Austin area homes has been the same
or greater each month when compared to the same month of the prior year
except in May of 2010, when the median price was two percent less than
the prior year. That’s roughly 17 straight months of positive price
momentum in the Austin market.
Also,
the “average days on market” for homes that did sell in May was 81 -
the shortest length of time for homes to stay on the market since
October of last year. And anything under 90 days on market is great
news in any market.
But
here’s probably the biggest news: There were over 2,150 “pending”
sales as of the end of May. That’s a full 53% increase over May of last
year at the height of the Home Buyers Tax Credit wave!
Additionally,
in May, the number of new listings coming onto the market was only up
by 2% compared to last year, and the number of total “active” listings
(9,744) was down by a full 13% - another hugely positive sign that
inventory levels are beginning to get in line with demand. At the
current rate of sales that puts the supply of homes on the market at 4.5
months. Anything under five months of supply is considered a seller’s
market.
The
good news “takeaway” here is that even though overall sales are
slightly down when compared to last year (think Home Buyers Tax Credit),
available inventory has dropped by over 13%. This is going to lead to a
huge drop in available inventory in the market.
Leasing
activity in the Austin area continues to be a bright spot as well. In
May a total of 1,269 properties were leased, a full 4% increase over May
of 2010, with a median lease price of $1,250 - another 4% increase over
May of 2010. Growth in rental activity due to “new household”
formation also helps absorb available inventory which helps strengthen
resale prices as well.
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