Austin MLS faces highest active inventory in over 10 years

 

 

On June 14th, Austin Board of Realtors MLS shows 15,329 active single family residential properties in the MLS.  The chart above shows that this has been the highest inventory ever (chart goes back to 2005), even when the foreclosures/short sales were up in 2010, where the inventory was as high as 13,820.  The current interest rates, per Mortgage Rates Daily, are at 7.01% for 30 year fixed conventional loans. 

What does this mean?  Although we are currently at a balanced market (neither sellers nor buyers market), we are trending towards a buyers market.  This would also mean that prices would have to drop if sellers want to sell.  Many buyers who are in need of a loan are on standby due to the higher than normal interest rates.  The property taxes and property insurance have also increased, hence, considerable additional costs to consider.

Before making a decision to buy or sell, give me a call to give you an understanding of the Austin market through my data analysis.  I just recently finished a Data Science in Real Estate Course from MIT S&P and would like to apply the knowledge I gained.

Subject to or Wrap mortgages

As mortgage interest rates increase, we are seeing some creative transactions such as seller paying buy down rates for the buyer, buyers assuming seller's mortgage (if current mortgage allows) and subject to financing aka wrap mortgage. 

A real estate  lawyer, explains in the attached image why he advices against wrap mortgages. To explain, a wrap mortgage is when the buyer makes the payments in behalf of the seller without assuming the mortgage, which means the mortgage will remain under the sellers name though the deed has been transferred to the buyer.  The risk is that the buyer may stop making payments without the sellers knowledge,  hence, the property may go to foreclosure risking the sellers credit. In addition, the mortgage company may accelerate the balance of the mortgage once they find out a transfer of ownership occured. A brokerage I worked for will not allow wrap mortgages because of the risk of liabilities. Most of the time,  the sellers don't understand exactly what they're getting into though a lawyer is needed in writing the contract in this type of transaction.

This chart shows the relationship between the active single family residential property listings (in units) vs sold listings in the Austin Board of Realtor MLS.  In October, it shows 12,870 actives vs 2,585 units sold.  The supply is increasing rapidly as the demand slows especially in the cooler/winter months are here.  The current interest rate is at 7.92% (source: ABOR)

 

Active Single Family Homes are on the rise

Looking at Austin's August statistics, the number of active single family homes are 12,808 units. This is relatively high considering just about 2 years ago, March 2021, we had a hot market at only under 2,500 active listings.

In retrospect, back in June/July 2010, we had over 14,000 active listings, the highest its been since the last recession. 

Why do you think Austin's inventory is so high? Could it be because our interest rates are currently averaging 7%? Let me know your thoughts.

January 2018 Real Estate Statistics

Units Solds in Lake Travis ISD and throughout Austin are the same compared to last January.  Know the market by finding out if its a good time to buy or sell before you decide.  Give me a call at (512)786-7355.

August 2013 Statistics for Austin, TX

More great news for Austin, Real Estate.  Sales in August 2013 were up 23%!  The dark line below shows the current year and look, we have surpassed sales in the past 4 years.  This is so awesome.
Finally waiting to sell?  Do you think now is the time?

May 2013 Austin Real Estate Statistics

Another great news for Austin's real estate.  The sales have continued to rise.  Look at where we are now compared to the past 4 years!  We have surpassed our number of units sold.  I am looking forward to our peak season, June, to see where this puts us. 

Why is this happening?  As people continue to move to Austin, we have a shortage of inventory.  Not only is the sales inventory low but lease inventory is low too.

So if you are thinking of buying or selling, give me a call at (512)786-7355 to give you the 411 on our real estate. 

December 2011 Real Estate Statistics

What did 2011 look like?  We closed the year strong!  In December 2011, residential units of sold properties in the entire Austin MLS were up 10% compared to last December?  For Lake Travis properties (properties in Lake Travis ISD), sold properties were up 6% compared to last December.
The year also started out strong as in January, we are writing contracts! I already had 3 pending just on the first 2 days of the year on my listings. I hope this is a good sign for Austin's real estate housing market and national economy.  How does this compare to your area?
Double click on the attached photo to enlarge.

Austin's June Real Estate Statistics

It's the middle of summer, almost the peak of the real estate season. How did we do? Lucky for me, Alamo Title of Austin provides up to date statistics of our real estate market. Here are the numbers:

Preliminary June 2010 Data:

Units for Sale: (compared to June 2009)
New listings are down 2.86%.
Pendings are down 30.61%.
Solds increased by 6.56%

In Lake Travis ISD, the residential sales are up 9% compared to last June. Not bad.

If you are from a different part of the country, please share with me how your market is doing. I would really like to know.

Thanks again to Alamo Title of Austin for providing these statistics.

June 2009 Austin's Real Estate Statistics

Is Austin's market shifting? Hmm, look at these statistics. Based on the number of single family homes sold in Austin (per Austin Board of Realtor's), in June, sales are down ONLY 9% compared to last June! In Lake Travis ISD (which includes Lakeway), sales ARE UP 2% compared to last June!!!! Yes, sales are UP, finally in the black. The last time Lake Travis ISD was in the black was in 2007. Just in case Lake Travis ISD home owners wanted to see the break down of home prices sold and days in market, I have provided this information in the above chart. So far this is a good sign, and I hope this market picks up! Let's keep selling these homes and keep thinking positive! NOTE: The information herein has been obtained from the Austin Board of Realtors and has not been verified.

Ridge At Alta Vista, Enclave at Alta Vista, Alta Vista at Lakeway YTD Real Estate Statistics

Many homeowners from the neighborhoods mentioned above follow my blogs to see the statistics in their community. I ran the YTD statistics and overall, in the Ridge at Alta Vista neighborhood, the average price per square foot is 2% lower in 2008 compared to 2007. That is expected but still not too bad. But in the Enclave Condominiums, the average price per square foot is 18% lower than last year. As you know, Toll Brothers has completed the project and only has a handful of completed condominiums to sell.

These are Year To Date numbers, so when averaged, it doesn't seem too bad. I want to point out that it is important to take into consideration how Central Austin's real estate has been doing the past two months when the bank crisis and mortgage bail-out started. The sales every where in Austin became sluggish (view my blog on November statistics).

If you are thinking of selling in Austin at this time, please have your real estate agent, run your neighborhood statistics since October, 2008. You need to have an understanding of the current market.

If you would like me to run the statistics for a specific neighborhood, like the one in this blog, please give me a call and I would be happy to provide this information to you for FREE.

October Austin and Lakeway Real Estate Statistics

As you remember, October was when the bank fall out began, the beginning of Bush's bail-out plan. How did this affect Austin's real estate? Alamo Title reports that solds decreased by 26.24% from October last year. You are probably thinking that 26% isn't so bad, but if you look at the chart, Austin's real estate started to take a dip in the fall. Hence, I am guessing, that's around a 36% decrease in sales from 2 years ago!

As far as Lakeway real estate, sales are down 5% from last October or 33% down from October 2006.

With the Presidential election finally over, I am optimistic that our new President will bring good changes and I hope that you feel the same way.

NOTE: The information here in has been obtained from Alamo Title and Austin Board of Realtors and has not been verified.

2008 Parade of Homes in Rough Hollow, Lakeway, TX

Are you ready to see this year's Parade of Homes? This year, the Home Builder's Association of Greater Austin has chosen Rough Hollow to hold the Parade of Homes. Rough Hollow is located in Lakeway next to The World of Tennis section. These homes have views of Lake Travis but none of them are waterfront. 6 homes or builders have participated and all I can say is WOW! The homes are enourmous in size as well as the price tag. All homes have a luxury finish out, 5 of the 6 are completely furnished except home #5 which has been custom built for a specific homeowner (and it's not ME nor a client of mine). The 6 homes are as follows:

1) 226 Canyon Turn Trail by Copperleaf Property Group. 8,108 sq ft., 3 level home with 2 elevators, 4 car garage, pool, seven outdoor living areas amounting to 3,100 sq. ft. There are 2 full guest quarters (3rd floor and garage level). My favorite is the his/her bathroom suites where each master can have his/her dressing area, separate areas with sinks and toilets. The female area has a jacuzzi tub. The master bath has embedded green onyx stone. As I toured this area, there must have been 25 people just in the master bath alone and could easily fit another 10 people.

2) 231 Canyon Turn Trail by VII Homes. 6,782 sq. ft., 5 BR/6.5 baths, infinity pool with hot tub, swim up bar; 3 car garage with courtyard.

3) 229 Canyon Turn Trail by Sterling Custom Homes. Over 6,000 sq. ft. plus 4,500 of outdoor living space. I love all the seamless windows in the main living areas where you can see out to the lake. I love the living area spaces though I was not thrilled with the interior decorating. But that is of course a personal opinion or I have no taste.

4) 227 Canyon Turn Trail by New Austin Homes. 6,778 sq. ft. with 6 outdoor living areas totalling 3,300 sq. ft. with infinity pool. The outdoor living area in here is absolutely spectacular. The large area to the side with the outdoor fire place and tv had my heart. There is a koi pond next to the pool area and the views are amazing.

5) 221 Cayon Turn Trail by McCullough Gray. The design is what makes this builder different. There's alot of the barrel ceiling and the octagonal rooms that are towers. The sq. footage is a whopping 10,612 which is large enough for a royalty's vacation home. The home is unfinished but gave the spectators enough wow because of the detail put into it.

6) 219 Canyon Turn Trail by Jenkins Custom Homes. The sq. footage was not stated however, it feels the smallest of the 6 homes. There is a large sale water aquarium in the living room which turned me off automatically. Once again, a personal opinion. The kitchen was smaller but loved the hidden room behind the spice rack for caterers, etc. The home has 6 BR, 5BA and 2 half baths, 3 living areas, and a 4 car garage. At this point, since it is the last home, the spectators were tired from the sun and from walking so we hurried through the last home and couldn't wait to get on the next shuttle to sit.

All homes were definitely different from each other, including design and finish out. If asked which home do I see myself in? Probably none of the above. My personal preference would be a 2,000 sq. ft. condo with a hill country view.

Guess who just got ePRO certified?

Check out the following PRESS RELEASE:



For Immediate Release



Local Agent Earns REALTOR e-PRO® Certification

Feb. 21, 2008 -- Pearl Jones of Keller Williams Realty has successfully completed the REALTOR e-PRO course to become one of a select few real estate professionals to earn the prestigious certification offered through the National Association of REALTORS.®

The REALTOR e-PRO certification course is an educational program unlike any other professional certification or designation course available, comprehensive and interactive. It is specifically designed to provide real estate professionals with the technology tools needed to assist consumers in the purchase or sale of a home.

With more than 70% of consumers beginning their real estate research on the Internet, e-PRO certified agents have the experience and expertise to meet the demands of today’s buyer and seller.

“The real estate industry has undergone a fundamental change over the past several years,” said Pearl Jones of Keller Williams Realty. “A majority of consumers are taking the time to conduct their own research prior to contacting an agent. In turn, real estate professionals must be knowledgeable of how technology can assist them in serving the needs of the buying and selling public.”

The exclusive REALTOR e-PRO certification course is presented entirely online and certifies real estate agents and brokers as Internet professionals. Because of its innovative design, students are able to complete the course at their own pace, when and where they want, via any Internet connection. The course is designed to help REALTORS stay at the leading edge of technology and identify, evaluate and implement new Internet business models.

Once completed, the e-PRO certified real estate professional joins the ranks of a special community of highly skilled and continuously trained professionals who provide high quality and innovative online-based real estate services. Consumers can identify the e-PRO through the exclusive e-PRO Internet Professional logo.

Both the content and the delivery platform were created by San Diego-based technology company InternetCrusade®. The course instructs participants in the professional use of e-mail, the development of an interactive Web site, and the use of online research tools. Graduates use the skills they've acquired to provide clients information on properties for sale, local communities, and the local real estate market.

For more information, e-mail Pearl Jones at pearljones@kw.com or call (512)786-SELL.