Austin Market Conditions: June 2011

Real Estate has cycles and regional uniqueness. Having recent dealings in one community, city or state, has almost nothing to do with what is happening in another city, state or specific community. It is all about what is happening right here, right now--not what is being reported on the 10 o'clock news for the nation as a whole. This is a little bit like saying that test scores for 10th grade students in the State of Texas are the best in the nation, but test scores in a particular school, class or for a given student in the state of Texas may have no bearing on that information. With Real Estate, it is all about what is happening locally. Here and now.

All things considered, Austin continues to do well. Jobs are still being created in our local market. New industries and the long standing businesses of our market continue to do well. And the things that make Austin a desirable place to live, continue to flourish.


This time of year is particularly important to Real Estate. If homes are not selling between June to August--something is wrong. When school is out, families move. This is particularly true in communities where there are strong and outstanding schools. But in general, this is true all over. If the market is healthy now, the outlook is favorable.

Austin is seeing something now that we knew well in the market peaks of recent years--multiple offers on a listing. Nice homes, that are priced well to the market, in relatively low inventory areas, selling quickly. And selling with multiple bidders. Many of these homes are selling for full list price and above. And homes are appraising at these higher values. Amazing? Unbelievable? No--not really. It is a fixture of our market that we know well, and understand that when the demand is high for a particular home or area, and the price is right, buyers recognized the situation and do not hesitate to act according to the market conditions.

Quick Summary of the Stats. At this writing there are

• 9,837 Single Family Homes are For Sale today in Greater Austin
• There are an additional 3,011 homes under contract--Pending to close
• 7,397 Single Family Homes have sold and closed this Year-To-Date  

Adding sold and pending homes together, divided by the number of active homes on the market currently, you can come to the conclusion that there is approximately 6 months of available inventory right now. If you follow the rule that inventory is based only on closed home sales, we have approximately 8 months of inventory. Either way, it is not an over whelming number, especially when inventory should be highest during the peak summer months to feed to highest demand of the summer.


So, what does it mean? Austin continues to thrive. Yes, we have seen some stress and transition from changes in our local job and real estate market, but we have also seen businesses grow, industries expand, and a migration of new people coming to Austin from all parts of the nation and call our great city "home". I hear it every day.

I had two closes today for wonderful new clients. Both families are moving to Austin from other parts of our great nation. One thing that they have in common, and most of my clients seem to recognize and express. Austin is a place where people like people, and new comers see a genuine sense of interest in people who are moving to our area. We like that. Austin is that kind of place.

If you are looking for a place to call home, and looking for a Realtor to help you find that new home in our Greater Austin area--I would be honored to count you among my clients and friends.