The real estate market in Austin has remained basically flat during the last two years while higher priced homes have definitely taken it on the chin. Yes, it has gone up and down over this time frame but it has basically stayed flat. Considering the state of the rest of the country, this is a big plus. Much of this has been driven by the strength of the local and Texas economy plus the large number of people who continue to come into Austin from other parts of the country in hopes of finding better financial conditions. As long as the overall economy does not worsen, Austin should remain flat in growth for now.
Over the last two years, there is no clear indication of an upward or downward movement in home prices and home sales. Only the number of days that it takes a home to sell has changed. This is not unexpected since the tightening of lending standards by the banks has now swung too far in the opposite direction which has made the obtainment of a mortgage a very trying experience for a home buyer.
Home prices below $300,000 remain a Seller's market. Homes that sell for more than $500,000 have maintained large inventories for over two years and are in a strong Buyer's market. The current inventory is 15.6 months as compared to inventories of 3.5 months for homes selling for less than $200,000.
The table below shows inventory levels for September of Austin homes in different price ranges.
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Inventory Levels Based on Home Price in the Austin Area for Sept 2009
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|
Home Prices
|
Sales
|
Listings
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Sept Inventory
|
Aug Inventory
|
|
100K-200K
|
846 |
3040 |
3.5 months
|
3.6 months
|
|
200K-300K
|
417 |
2072 |
4.8 months
|
4.8 months
|
|
300K-500K
|
275 |
2037 |
7.0 months
|
7.3 months
|
|
500K-1M
|
77 |
1313 |
15.6 months
|
13.3 months
|
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