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Market News and Trends

Austin Market Price Distribution

I comment frequently about home prices in the Austin area (most recently in Market Dashboard – 2017 recap), but it has been a while since I shared the overall distribution of residential sale prices across the Austin metropolitan area.

We’ll come to the data a little later, but this chart shows the important trends in pricing of houses, condominiums, and townhouses in the 5-county metro area:

Here are the highlights:

  • The decline in sales below $150,000 was obvious for all seven years shown in the graph above.
  • The $150,000 to $200,000 price range still contributed about 20% of all sales through 2015, but had slipped a little even then.  Then sales in that price range plummeted in 2016 and 2017.
  • The percentage contribution of all other price ranges has been rising steadily throughout the period shown.
  • Sales between $400,000 and $500,000 represented 10% of all home sales for the first time in 2016.
  • Homes sold in the $500,000 to $750,000 range reached 10% of total sales in 2017.

With those high points identified, here are more details:

In the top half of that table, I highlighted the years in which each price range peaked over the past seven years.  Note an important difference in 2016 and 2017 — double peaks, in the $200,000 to $250,000 range and between $300,000 and $400,000.  Unless new home builders get very busy building under $250,000 (unlikely), I don’t expect we will see that happen again in 2018.

In Home prices are up in Austin, but … I discussed the ten year period that ended in 2014.  At that time, you could still shop under $200,000 and see a little more than half of the area’s active listings.  In 2017, you had to be looking at homes up to $300,000 to see half of all listings.  I fully expect that point to move up to the $300,000 to $400,000 range in 2018.

In Market Dashboard – 2017 recap), you saw that I expect 2018 to be another fast-paced year for Austin-area real estate.  With that in mind, we’re not done yet with upward pressure on home prices, and I would expect 5% to 6% increases generally, about the same as the last couple of years.

About Bill Morris, Realtor

More than thirty years of business experience (high tech, client service, business organization and start-up, including many years in real estate) tell me that service is the key to success and I look forward to serving you. I represent both buyers and sellers throughout the Austin metropolitan area, which means first-hand market knowledge is brought to bear on serving your needs: -- Seller Representation is a comprehensive process that begins with thorough market analysis and consultation, continues with properly staging the home to achieve the highest price possible in a reasonable time on market, a complete program of marketing and promotion, ongoing updates and communication, closing coordination, and follow-up throughout (and after) the sale. -- Buyer Representation is also full service: shopping, previewing, price and market consultation, contracting, negotiating, coordination of inspections, appraisals, repairs, and closing details, and follow-up beyond the closing of your purchase to ensure your lasting satisfaction. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That's why I constantly research the market and property values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.


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