It’s a Stellar Year for Austin Home Owners to Sell Their Home
This year has been amazing for home sellers, due to an ideal combination of record-setting factors. The National Association of Realtors reported in their online magazine, Realty.com, that rising home prices, demand from home buyers and less competition is creating an ideal real estate environment for Austin home sellers this year. Data from national statistics is reflected in Austin’s hot low-inventory market.
Daren Blomquist, RealtyTrac's vice president, points to these three factors behind why this year is shaping up more favorably for sellers:
1. More buyers than sellers: “Sellers in many markets are seeing stronger demand from a larger pool of buyers, including first-time buyers, boomerang buyers (previous owners who lost their home to foreclosure), as well as traditional owner-occupant buyers” the Realty.com report read. Emphasis was put on the number of buyers using Federal Housing Administration – typically low down payment loans often used by first-time home buyers – loans. The loans accounting for 23 percent of all single-family home and condo sales with financing in the second half of 2015, making it the highest share since the first quarter of 2013, according to RealtyTrac's Midyear 2015 U.S. Home Sales report.
2. Skyrocketing home prices: Single-family home and condo sellers in the first half of this year are selling for about 13 percent above their original purchase price, on average. "So far in 2015, [sellers] are realizing the biggest gains in home price appreciation since 2007," Blomquist says. "In June, sellers sold for above estimated market value on average for the first time in nearly two years." Median sales prices of existing-homes pushed above the previous 2006 peak to a record high in June, the National Association of REALTORS® reported this week. The median existing-home price for all housing types was $236,400 in June – surpassing the peak median sales price set in July 2006 at $230,400.
3. Low selling competition: Buyers have been forced to compete for the limited supply of homes on the market as inventories of for-sale homes remain low. Properties in the foreclosure process or that are bank-owned have accounted for 8 percent of all single-family and condo sales in June, the lowest monthly share since January 2011. In 2011, the share of distressed sales had reached a monthly peak of nearly 46 percent of all single-family and condo sales.