Austin real estate market continues to show momentum with 9th month of year-over-year increases in sales volume

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Austin Board of REALTORS® releases February 2012 real estate statistics

AUSTIN, Texas – March 20, 2012 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®, 1,283 single-family homes were sold in the Austin area in February 2012, which is 16 percent more than February 2011. During the same time period, the median price for Austin-area homes was $195,000, three percent more than the same month of the prior year.

Leonard Guerrero, Chairman of the Austin Board of REALTORS®, commented, “For nine months in a row, Austin has seen year-over-year increases in sales volume. In addition, we also saw a modest increase in the median home price in February 2012, which could indicate more competition among buyers for a shrinking inventory of homes.”

In February 2012, the Austin market had 4.2 months of inventory, 1.5 months less than February 2011. In addition, the market featured nine percent more new listings, 20 percent fewer active listings and 25 percent more pending sales in February 2012 compared to the prior year. On average, homes spent 86 days on the market in February 2012, 12 days less than February 2011.

February 2012 Statistics

·         1,283 – Single-family homes sold, 16 percent more than February 2011.

·         $195,000 – Median price for single-family homes, three percent more than February 2011.

·         86 – Average number of days that single-family homes spent on the market, 12 days less than February 2011.

·         2,538 – New single-family home listings on the market, nine percent more than February 2011.

·         6,862 – Active single-family home listings on the market, 20 percent less than February 2011.

·         1,926 – Pending sales for single-family homes, 25 percent more than February 2011.

·         4.2 – Months of inventory* of single-family homes, 1.5 months less than February 2011.

·         $324,906,920– Total dollar volume of single-family properties sold, 22 percent more than February 2011.

The following sections describe trends in other sectors of the Austin real estate market.

Townhouses & Condominiums
The volume of townhouses and condominiums (condos) purchased in the Austin area in February 2012 was 122, which is 15 percent more than February 2011. In the same time period, the median price for condos was $176,000, ten percent more than February 2011. When compared to the same month of the prior year, these properties spent 26 percent less time on the market, or an average of 84 days.

Leasing
In February 2012, 1,104 properties were leased in Austin, which is one percent more than February 2011. The median price for Austin-area leases was $1,250, or four percent higher than the same month of the prior year.

* The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced. 

Overpricing Can Be the Worst Strategy When Selling a Home

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We’ve all seen them – homes that are on the market and priced so high you have to wonder if the sellers are setting their asking price based on home values from another decade. But if you think about it – the goal of these people is to end up with more money in their pocket at the end of the day.  The truth is that when sellers price their home for more than what the market dictates it is worth, there are some pretty dire circumstances.  Here are three reasons why you should shy away from pricing your home too high, and make a concerted effort to price it effectively.

Buyers Don’t Like to Deviate Too Much From the Asking Price

Whether because of perceived rigidness on the part of the sellers, or to save themselves the embarrassment of their offer being rejected, many buyers shy away from bidding on homes that are overpriced.  They have no idea why the seller may have priced the property so high, and the last thing buyers want to do is waste time in a bidding tug of war only to be the loser at the end of the day – so they don’t make an offer.

There is a Misconception That Sellers Know Their Home is Overpriced

Many buyers mistakenly believe that the seller knows their home is overpriced. The buyers think that if the seller is willing to accept a lower value that they would just price the home accordingly in the first place. to accept a lower value then they just priced the home accordingly.  An overpriced listing is a turn off to serious buyers. So rather than mess with it, they move on to other properties, and an offer fopr the overpriced home never makes it to the table.

Buyers Assume That Previous Offers Have Been Rejected By The Seller

A home that is priced higher than it should be gives the impression that the seller is not willing to budge.  Buyers take one look at such properties and assume that previous offers were probably made based on the property’s fair market value and the seller refused to negotiate.  In actuality, these homes almost never receive offers, leaving the seller in the dark and the buyers to move on to other properties.
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The single biggest financial disadvantage of listing a home too high is that it won’t sell and the seller will either have to channel more money into the home to get some offers on the table or they will have to reduce the price to get it sold.  The interesting thing is that the reduced price is often lower than what would have been the asking price had the home been priced effectively in the first place.

Homeowners that end up pricing their home too high usually spend thousands of dollars more than they were trying to save in the first place.  By practicing our tips and remaining aware of the reasons why overpricing is the worst thing you can do, you can sell your home for a great price instead of being one of the last houses on the block yet to sell.  To learn more about great pricing strategies visit your Realtor to get customized, professional consultation.  Nothing beats working with someone that knows the industry well!

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TIPS ON HOW TO PRICE A HOME  

* Do your homework to find the current home value of your home.  A Comparative Market Analysis (CMA) is best done by a professional Realtor. You can also get an appraisal done – something that will help in the lending process plus justify your asking price)

* Give your home the TLC it needs so it is an attractive catch to potential buyers.  That’s a great way to justify your price.  If you can’t get to the items that need fixing or you would rather leave the aesthetics to your buyers’ so they can cater to their own tastes once they move in, be sure to reflect that in your price.

* Don’t get caught up in old prices that are no longer relevant in today’s buyer’s market.  Price your home based on today’s statistics and be prepared to corroborate the figure with current market data that supports your number.

Use Mobile Devices to Search for Your Dream Home While On the Go and Save Time

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If there had been 36 hours in a day, most of us would have had plenty of time to find that perfect home but if you’re busy in your daily lives like almost every other person is these days, chances are you barely have time to get to the basics. So when it comes to looking for your dream home, where and how do you find time to attend open houses, spend countless hours searching real estate publications in print or on the web or even consult with your Realtor?

To help make it easier, we’ve put tougher a great tool that is designed especially for our area right here in Austin. Just visit the website at www.witthomes.com and the rest is really easy. To make it even simpler, there is a video above that shows exactly how to access each key area on the site so that you can be on your way to enjoying fast, reliable and accurate listing information – all at your fingertips and all in real time.

The Advantage and Edge of Searching For Real Time In Real Estate

While others that see a property and call their Realtor right away to express interest have to wait for their agent to return their call, you can be on your way to viewing details of the property and even deciding whether to shortlist it. Our web tool also allows you to customize alerts that correspond with your saved search settings. So that means each time a property that matches your criteria is listed on the site, you are instantly alerted and can immediately take action. How many prospective buyers can act that fast?

Another great benefit of conducting your searches and using the web-based tool that we offer to assist you in your search is your ability to remain on top of significant changes made to properties that are on your shortlist. This may include price reductions, changes in terms, new offers or additional seller concessions and/or buyer incentives being posted.

Supplementing Face Time With Your Agent

While nothing will replace the significance of having your agent consult with you on properties you have selected or at least are considering – the ability to prepare in advance is very useful. You can utilize listing information obtained in advance to put together a comprehensive list of questions for your Realtor. The more organized you are as a buyer, the better your Realtor will be able to serve with more efficiency. When you use the tool as a supplement to your existing relationship with your agent, it works very well. In fact, if an agent comes across a property that he or she feels may suit your needs, they could refer you to the site no matter where you might be at the moment the listing becomes available online – and you could be viewing it instantly! Equally, if you find something that strikes your interest, a quick call to your agent could get things started so little time is wasted in getting you your perfect home.

National Giants Versus Localized Community

As a client of our firm, you will be able to reap benefits of having access to exclusive listings through our MLS service – and you will access them in real time. We update our properties quickly and strive to achieve optimal results based on your search criteria. Since we understand the region better than those operating a national-level home search tool, ours will provide excellent results to serve you better.
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We invite you to come visit our website and the next time you’re waiting in line somewhere or have a little downtime, start searching so you can see how easy it is to find your dream home while on the go!

January 2012 Real Estate News

According to a national survey of real estate transactions, it takes about twelve weeks for the typical buyer to find their next home.

Since the vast majority of homebuyers start their search online, the weather becomes less of a factor for sellers marketing their house to those buyers.

For more tips on how sellers can make the most of any market, we turn to News You Can Use.

NEWS YOU CAN USE

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