According to new information released by the Austin Board of Realtors, sales of existing homes in the Austin Metro Area increased 25% in May over homes sales in 2011. The median price of a home rose 10%. May marked the 12th consecutive month that sale price increased from the previous year and the 4th consecutive month that median home prices increased over the same month in 2011.
Also significant was the fact that the 2,340 home sales in the month of May marked the highest level since August of 2007.
The age-old principle of supply and demand is fueling this move to a Seller’s market. There were approximately 23% fewer homes on the market in May, 2012, than in the same month in 2011. Realtors commonly measure activity levels in the housing market by the “absorption rate”, which is a calculation that answers this question: given the number of homes that are selling per month, how many months of housing inventory are available? In May, 2011, there was approximately 6.8 months supply of homes on the market. In May 2012 there was approximately a 4.4 month supply of available homes. This calculation is also useful in determining the shift from a Buyer’s Market to a Seller’s Market (and vice versa). Usually, once we get below 6.6 months of housing inventory, we are moving toward a Seller’s Market. To our many clients who have driven around in circles for weeks looking for the right home, it sure feels like a Seller’s market.
So here’s why I was right: We have been saying since January (sometimes holding our breath as we do) that supply and demand is significantly impacting our local Williamson County market. We’ve told everyone that will listen that if you’ve been waiting for the right market, now is the time to sell your home. Homes that are priced well, in good condition and marketed well on the internet will sell quickly. With so many of my optimistic prognostications falling a little flat over the past two years, it is lots of fun to be right!
Sources: Austin Board of Realtors, Austin American Statesman