You're reading...
Market News and Trends

Off to a fast start …


We’re about to finish the 1st Quarter of 2018, and there’s every reason to believe it will be another very fast-paced year.  In case you’re new to the Austin area or just haven’t been paying attention, this chart will put our market environment in perspective:

“Odds of Selling” is just a snapshot of  the percentage of active residential listings that sold each month — in this case, over the past 28 years — in the 5-county Austin metropolitan area.  The average over that entire period has been 25%.  The average since January 2013 has been 41%, and there were seven months over the past five years in which 50% or more of all active listings sold.  Notice that the only other time we reached that pace was in the first half of 2000.  This kind of seller’s market lasting for more than five years is truly unprecedented, at least in our area.

The obvious result of high demand and low supply is upward pressure on prices, and this chart bears that out:

Note that that graph covers a shorter timeframe, from near the peak of the last market cycle through February 2018.  You can see the brief impact of the 2008 market downturn, and an even briefer interruption before our area moved solidly into positive territory in 2012.

For a longer view of price trends in the Austin area, this chart is more useful:

Good times and bad, for almost 30 years, the Austin metro area has fared well, with prices basically flat following the dot-com bust in 2000 and again after the mortgage industry crisis in 2008 and during the “great recession” that followed.

I will post a more thorough review of my market dashboard when final data for the entire 1st quarter is available in a few weeks.  For now, I’ll just say that residential listing inventory across the metro area represented just 2 months’ supply in January and February 2018 (versus the 6 to 6 1/2 months’ inventory that most market economists consider “balanced”).  We remain in a seller’s market.

We are likely to see more listing activity in the coming weeks and months but the key, as always, is local job creation and population growth.  If those continue as they are now, then demand may continue to outpace supply.  I believe that will be the case in 2018, and we should buckle up for another busy year in Austin real estate.

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.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: