Austin Real Estate Update – June 2012
Austin Real Estate Update – June 2012: Austin Market Heats Up
by Roselind & Matthew Hejl
Austin was named #2 in “Top 10 Cities People Are Moving To” by Fiscal Times. Buyers are flooding the market. Confidence is high. Mortgage rates are low. 2012 is proving to be a great year for Austin real estate. Austin’s inventory level at mid-year is just 4.1 months – an overall seller’s market.
Inventory levels in Austin, area by area:
See how neighborhoods compare: Inventory levels by local areas
There are many neighborhoods where inventory has dropped below 3 months. For example, Area 7 (Barton Hills) would deplete all inventory in 1.35 months if no new listings came on the market. Central south Austin is down to 1.62 months, and southwest Austin is at 1.89 months of supply. Basically, all mid priced homes in central and close-in suburban areas are in tight supply. We are seeing multiple offers for homes that are priced and presented well.
Upper priced homes generally take longer to sell. In the “over $800K” range, supply varies from 9 months to several years of inventory, depending on the area.
Foreclosures:
These have not been a large part of our market, and appear to have peaked in 2010.
2012 (mid year) – 3.06%
2011 – 4.25%
2010 – 5.00%
2009 – 3.75%
Some comparisons with the month of June, 2011:
Single-family homes sold: 23% more than June 2011.
Median price for single-family homes: 8% more than June 2011.
Average number of days on the market: 17 days less than June 2011.
New homes on market: 8% percent more than June 2011.
Active listings on market: 20% less than June 2011.
Pending sales: 15% more than June 2011.
Mortgage Rates:
The federal government continues to hold down rates in order to stimulate the economy. If you are a homebuyer or investor, loan rates have simply never been better. There was a time when 10% was considered a very low rate (after a period of up to 19%).
Compare payments on a $300,000 (30 year) loan:
10% interest – $2,633 monthly
5% interest – $1,610 monthly
3.8% interest – 1,397 monthly
Another way of putting it is to say that, today $2,633 will cover the payment on a $565,000 loan, versus the $300,000 loan you could get at 10%. The low cost of money makes this a great time to get into a home.
“A little tail wind is a lot better than a headwind,” says economist Chip Case, of Case-Shiller. In Austin we have a lot of tail wind!
Roselind Hejl’s Austin Texas Real Estate Guide
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