Market Report March 2014
Published April 22, 2014 / Team Price Real Estate
During this year's spring refresh, seller activity is the first item on the watch list. Low inventory has been a national headline grabber, and many are eager to see if this is the year that brings a bevy of new properties to market for ready-tobuyers. Investor activity and cash purchases should be monitored, as well, along with any increases in new construction. And although interest rates are up from their all-time lows, borrowing costs are still remarkably affordable. It's cheaper to own than to rent in most of the country.
- New Austin Listings decreased 2.1 percent to 3,660.
- Pending Sales were up 6.7 percent to 3,147.
- Inventory levels shrank 14.4 percent to 5,798 units.
Prices marched higher.
- The Median Sales Price increased 7.0 percent to $229,000.
- Days on Market was down 18.9 percent to 48 days.
- Absorption rates improved as Months Supply of Inventory was down 23.9 percent to 2.2 months.
Consumers are in better shape for the current financial landscape, just in time for the primary home-buying season. Along with an uptick in consumer confidence, GDP growth was revised up to 2.6 percent by the Commerce Department. Consumer spending has risen and claims for unemployment benefits have decreased. Economic health fuels housing market growth. Employed, confident people with rising incomes tend to purchase real property.
Townhouses & Condominiums : The number of townhouses and condominiums (condos) purchased in the Austin area in March 2014 was 281, which is five percent more than March 2013. In the same time period, the median price for condos and townhomes was $225,000, which is 24 percent more than the same month of the prior year. When compared to March 2013, these properties spent 38 percent less time on the market at an average of 53 days.
Leasing : In March 2014, a total of 1,262 properties were leased in Austin, which is 10 percent more than March 2013. The median price for Austin-area leases was $1,450, which is five percent more than the same month of the prior year.
Home sales statistics are released on a monthly basis. For more information, please contact Team Price Real Estate at 512-213-0213. The inventory of homes for a market is 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.