Austin Real Estate Update: "Houston, We Have a Glut of Inventory"

By DeeinAustin™

Last month, I reported that home sales in North and South Austin were doing well despite a down market from last year. At that time, previously "hot" areas such as Central East Austin and the South Congress area (78704) were suffering. Those trends continued in February.

View the Slideshow for the latest Austin real estate market statistics, based on February MLS data from the Austin Board of REALTORS®. Click to Download the February Update (copywritten).

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AUSTIN REAL ESTATE MARKET SUMMARY- FEBRUARY 2008

Click Picture (Below) to See a Larger Version.

 

The February Market Analysis for Greater Austin revealed the following:

1. The median and average home prices were still on the rise overall despite higher inventory and fewer sales than in 2007.
2. Most properties were sold in under 75 days and at 96-97% of the List Price on average.
3. Inventory and sales are solid for homes priced below $250,000, selling in less than 3 months.
4. Homes and condominiums priced above $400,000 sat on the market for about 225 days. There are simply fewer buyers available in those price ranges.

If you're in a high-inventory area or your home is priced above $400,000, your agent should perform a market analysis every 21-30 days to help you reposition your home, offer new buyer incentives, or adjust your asking price. If you're a buyer looking for a home below $250,000 in Austin in a nice area, expect to compete.

WANT TO KNOW MORE ABOUT THE AUSTIN MARKET? VISIT THESE LINKS...

• Up-and-Coming Real Estate District: Austin's Southtown.
• Austin Real Estate Update January 2008.
• Spotlight on East Riverside Drive Austin.
• Cure for the Home that Won't Sell: Seller Feedback and Buyer Incentives.
• Boomerang Buyers Dominate Central Austin Home Trends.
• Housing Predictor's Top U.S. Real Estate Markets.
• Housing Predictor's Bottom U.S. Real Estate Markets.

Comments

[Patti Herrington]

Our market in Madison MS is going well. We do have a large number of homes on the market but are see a lot of these homes coming under contract.

[Dee Copeland]

Thanks Patti. I think there are some good markets in this country. We had the best of times and I don't think it's the worst of times yet.

I read an article yesterday that four Texas cities were the highest growth. http://tinyurl.com/38p3j5

Dallas, Houston, Austin and San Antonio are doing much better than most cities the nation, but we still have to be cautious. Too many buyers are trying to time the market. They need to get good data to make a good decision.

In some areas of Austin (micro-markets), the houses are actually getting more expensive since they're affordable. In Austin, people WANT to buy, they just may not be able to get a loan and, thank goodness, we have less speculative investors to compete with than in 2004-2006.

Unfortunately, in the areas where homes are selling below $200k, there's increased competition from investors and buyers who want to get a good deal. If homes sell for $300-350k+, things are a little slower unless that's under market in your area.