So are you still considering buying or selling-- but not sure what the heck is happening in this crazy, fast paced Austin market?? What is the average sales price in all over the Austin area? What about price decreases now outnumbering the price increases? What about the bidding wars?
So What’s the Austin Metro market like right now? In the last 7 days 996 properties came ON the market (new listings or back on market) and 1461 properties came OFF the market (as in sold, withdrawn or, gone pending).so obviously in the last week we have even more decreasing inventory by almost 500 homes!
So what is the average sales price in all over the Austin area for April? It’s now a hair over $577K with the average price per sq. ft. being - $257 :
Now for some of the higher end areas such North Central Austin? (as in Allandale, Highland Hills etc) The average sales price here in last 6 months was a hair over - $986K - almost a million dollars! With the average price per sq. ft. in April being $543 : Now how about the 183 Corridor? The average sales price in last 6 months was just over $665K with the average price per sq. ft. in April being $287:
Now if you’re looking in the Round Rock (E and W) The average sales price last 6 mo. was $493K with an average price per square foot in April of $221 So let talk about prices! Obviously if you’ve been watching the market at you, you know how it is moving extremely fast and multiple offers are very common for well-priced properties. The side note on this is, that price decreases in the MLS are now outnumbering the price increases by 3 to 2 in the last 7 days. Why is this? Because it is giving indication of a slight market correction because of sellers who have overpriced their property. This has happened because as there have been bidding wars, many homes have actually contracted and closed for 50k- on up to well beyond 100K over the list price. But NOW There appears to be an adjustment happening in the market, --which should cause the price increases to “take a breath”. Because the comparable sales prices have increased, due to the “bidding wars” in March and April. These comparables are now being used to price the new listings. And This is causing the buyers to have Sticker Shock and will more than likely tend to offer closer to list price going forward. This is a healthy sign, AND it is a much-needed opportunity for the qualified buyers who simply don’t have a lot of cash to go beyond list price or for what the home will appraise for. So we’re looking better at being able to buy a home at a fabulous interest rate closer to list price.
So Is there a message? Yes! Sellers would be wise to consider selling while conditions are still so favorable for them, BUT with the understanding that they need to choose wisely about their listing price so they don’t have to end up dropping the price 4-5 days after listing because of no offers. Another note on this is to realize the stigma that price decreases give off to the buyer. With multiple offers everywhere, the question would be why is this home still on the market when everything else has come and gone under contract within days?! The answer is still that the MARKET decided what it is willing to pay! A seller does not have to price as high, and in fact, many times will receive more offers and when the buyer knows that there is 10-20 offers, if they really love the home and it’s the right place for them, they will go in at the very highest and best price with the least amount of stipulations .
On that note- the Option money is definitely increasing. this is probably as a way to keep buyers from writing multiple contracts as many sellers have accepted a contract and taken their home off the market, just to have the buyers back out during the option period because they had put offers out on several different homes. So keep that in mind. The days of 2-$400 option on an average home is NOT going to get your offer accepted! In fact the last 4-6 offers I’ve written have included from 1000 up to 5 thousand and this is just to make the seller feel confident that you aren’t going to turn and walk away
As you probably know the appraisal waivers are very common so something to realize is that this places well-qualified buyers with low cash reserves at a severe disadvantage. For instance, IF the home doesn’t make appraisal, the buyer will have to bring cash to the table for the difference in appraised value and the contract price. And this is IN ADDITION to their standard down payment and closing costs.
Here’s an update on interest rates and what to look out for. First here’s the latest rates; 30-year Conventional mortgage rates remain in record territory, down under 3.00 %. FHA and VA 30-year loans are at 2.5 % Jumbo mortgage rates (any loans over 550k) are at 3.25 %. also be aware that because of the high number of loans being refinanced, the processing times are taking longer (mostly because of the appraisals wait time) So, be thinking around 40 days for conventional loan; up to 50 days for FHA/VA loans, and 60 days for USDA loans and Luxury. And out of town lenders are continuing to make transactions MUCH more difficult. As a Listing agent, I pay close attention to the loan prequal letter for the lender’s location. In a multiple offer situation, this really is an important consideration for my sellers.
Susanna Gentry Realtor 512.987.0475. 10900 Lakeline Mall Dr, Austin Tx 78717
Susanna Gentry Realtor, Coldwell Banker is a Seller Representative Specialist and Real Estate Negotiations Expert, Specializing in luxury single family homes in Round Rock, Cedar Park, Leander, Georgetown and Liberty Hill. North Austin; Williamson and Travis Counties. Susanna sells Austin, Austin realtor, real estate agent, Austin real estate, real estate investor