2015 National Association of Realtors Profile

2015 National Association of Realtors Profile Highlights

Buyers

• The typical buyer was 44 years old and has a median household income of $86,100.00.
• Expected tenure in homes was 14 years.
• At 30%, the primary reason for purchasing a home was the desire to own a home of their own.
• Buyers of new homes made up 16% and buyers of previously owned homes made up 84%.
• First-time buyers made up 32% of all home buyers, down from 33% last year.
• 87% of buyers recently purchased their home through a real estate agent or broker.
• 88% of buyers would use their agent again or recommend their agent to others.
• 67% are married couples, 15% are single females, 9% are single males, and 7% are unmarried couples.

Sellers

• The typical home seller was 54 years old with a median household income of $104,000.00.
• The typical tenure in the home was 9 years. 
• The most common reason for selling a home was that it was too small at 16% followed by a job relocation at 14%. 
• 8% of recent home sales were FSBO sales. This is the lowest share recorded since this report started in 1981. 
• Home sellers cited that they sold their homes for a median of $40,000 more than they purchased it. 
• 89%  of home sellers worked with a real estate agent to sell their home.*

*Courtesy of the National Association of Realtors 2015 Profile of Home Buyers and Sellers. 

Homeowner Tax Relief Proposition

 

On November 3, voters are encouraged to vote for Prop 1 (The Homeowner Tax Relief Proposition), deciding whether to amend the Texas Constitution to increase the homestead exemption by $10,000 and ban real estate transfer taxes—or taxes on home sales—permanently.

We want you to be fully informed on Prop 1 before you cast your ballot. Here are the four things Prop 1 does…

1. Increases the homestead exemption from $15,000 to $25,000. This is great news for Texas homeowners because it lets you keep more of your hard-earned money.
2. Extends the full benefit of exemption to seniors and people with disabilities, providing them a lower property tax cap, which helps keep their property tax burden low.
3. Prevents local governments and other taxing jurisdictions from reducing their homestead exemptions through 2019.
4. Bans a sales tax on real estate transactions, keeping homeownership affordable and avoiding double taxation on property.

Good Reasons to Vote For Prop 1

• Voting for Prop 1 ensures Texas’ housing market and economy stays strong, keeping homeownership within reach for many Texans.
• Homeowners can build more equity in their home without the fear of being priced out.
• The increased homestead exemption will be absorbed by the State of Texas, meaning it does not and will not affect public school funding.
• 37 states have a transfer tax. The passage of Prop 1 guarantees Texas is never added to that list.*

Join us and vote for Prop 1! Early voting starts Oct 19-30. Election day is Nov 3.
For more information, visit texansforprop1.com. 
*Courtesy of the Austin Board of Realtors

August 2015 Austin Real Estate Stats

Austin-area home prices set August record, outpace household income growth in August 2015

Austin Board of REALTORS® releases real estate statistics for August 2015

AUSTIN, Texas – September 22, 2015 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), Austin-area single-family home sales remained high in August, increasing eight percent to 2,943 home sales compared to August 2014. Austin-area single-family median home prices, for both sales and leasing, set a record for the month of August. Median home sales prices increased by eight percent year-over-year to $265,000, while median home lease payments increased by seven percent to $1,600.

Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “As Austin REALTORS®, we’ve seen our city expand in ways we never could have imagined, but household incomes have not been expanding at the same rate as the cost of living in Austin. We will continue working with our city’s leaders to find a solution to the complex affordability issues, with the end of goal of providing affordable and diverse housing stock for our growing population that aligns with the actual incomes of Central Texas residents.”

Recent data from the U.S. Bureau of Labor Statistics shows that approximately 65 percent of Austin-area professionals made less than $50,000 in 2014. Additionally, the City of Austin’s 2014 Comprehensive Housing Market Analysis cited that affordable housing costs should be less than 30 percent of gross monthly income.

That means for residents making $50,000 per year, a mortgage payment translates to $1,250 per month and would fall in a home sales price range of $200,000–$215,000. To compare, the August 2015 median home price was $265,000 and the median lease payment in Central Texas was $1,600.

Simultaneously, median home prices continue to rise and have increased by more than 30 percent from August 2010 to August 2015, a $65,000 difference over the last five years.

Average home price increased six percent compared to August 2014 to $329,620. Total dollar volume continued to rise year-over-year to $970,071,660, increasing by 15 percent.

Monthly housing inventory decreased by 0.1 months compared to August 2014, remaining flat at 2.9 months. This number is still well below the Real Estate Center at Texas A&M University’s balanced housing inventory level of 6.5 months.

New listings increased two percent to 3,364 listings and active listings increased by four percent year-over-year to 6,979 listings. In addition, pending sales increased 11 percent to 2,686 single-family home sales. Homes remained on the market for 42 days in August 2015, the same length of time as in August 2014.

Cooper concluded, “This new report from the Bureau of Labor Statistics provides further evidence of the affordability issue in Central Texas. The growing disparity between rising home prices and what Austin residents can afford, combined with low inventory levels, will continue to drive residents outside of Austin’s city limits to buy a home, putting further strain on our region’s infrastructure and resources.”

August 2015 Statistics

• 2943 – Single-family homes sold, eight percent more than August 2014.


• $265,000 – Median price for single-family homes, eight percent more than August 2014.


• $329,620 – Average price for single-family homes, six percent more than August 2014.


• 42 – Average number of days single-family homes spent on the market, unchanged from August 2014.


• 3,364 – New single-family home listings on the market, two percent more than August 2014.


• 6,979 – Active single-family home listings on the market, four percent more than August 2014.


• 2,686 – Pending sales for single-family homes, 11 percent more than August 2014.


• 2.9 – Months of inventory* of single-family homes, 0.1 months less than August 2014.


• $970,071,660 – Total dollar volume of single-family properties sold, 15 percent more than August 2014.

The following sections describe trends in other sectors of the Austin-area real estate market.

Townhouses & Condominiums

The volume of townhouses and condominiums (condos) purchased in the Austin area in August 2015 was 305, a one percent increase from August 2014. The median price for condos was $225,500, which is five percent more than the same month of the prior year. These properties spent 37 days on market, or three more days than August 2014.

Leasing

In August 2015, a total of 2,080 properties were leased in Austin, which is three percent more than August 2014. Properties spent an average of 36 days on the market, or four fewer days than in August 2014. Active property listings increased by eight percent compared to August 2014, reaching 1,986.

* The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

The Austin Real Estate Market is One of the Healthiest in the Nation!

 

It's an encouraging time to buy a home in Austin, according to WalletHub. The Capital City claims the No. 12 spot among 2015's Healthiest Housing Markets. Broken down by city size, Austin also ranks as the large city with the healthiest housing market.

 

In addition, six of the top 10 spots for 2015's Healthiest Housing Markets are located in North Texas, with Frisco nabbing the No. 1 overall title, followed by Allen at No. 2 and Plano at No. 4. Carrollton claims the No. 6 spot, followed by McKinney and Richardson at Nos. 7 and 9, respectively. 

The list was created by comparing 300 cities on their real estate markets and their affordability and economic environment, which were made up of 14 relevant metrics. Some of the metrics included percentage of houses underwater, how long it takes to sell a house, population growth and job growth.

Austin placed on the list because of its high ranking in the affordability and economic environment category. Frisco topped the list because of its high ranking in the highest median home price appreciation and lowest percent of mortgage holders in delinquent categories.

Houston lands at No. 55 on the list, followed by San Antonio (No. 67) and Dallas (No. 99).

Courtesy of CultureMap Austin 2015

First Time Home Buyer's Assistance Programs

First time home buyer in Travis County? Looking for your dream home? 

Check out this helpful link for first time home buyer's assistance program for buyer's in Travis County.  

https://www.traviscountytx.gov/corporations/housing-finance/down-payment-assistance

First Time Home Buyers are Going it Alone These Days

It used to be that purchasing your first home was something that typically happened after marriage. According to Zillow, that's no longer the case.

An analysis done by the real estate website that uses buyer characteristics based on the federally funded Panel Survey of Income Dynamics shows that nowadays only 40 percent of first-time homebuyers are married, compared to 52 percent two decades ago.

That can be attributed to fewer people getting married overall, but that's not the only major change in profile statistics. The average age of buyers has risen from 30 to 33, and people are renting for much longer — six years on average when it used to be more like four — before plunking down a down payment.

In the 1980s, a starter home typically cost 1.9 times a person's annual salary. Today it's more like 2.6, which roughly equates to $140,328, and Texas especially is seeing a spike in home prices.

For their money, single buyers tend to be choosier and less willing to do heavy renovations themselves. Without someone to share the maintenance and repairs that's understandable, but there's certainly an argument to be made for all that freedom you get in exchange.

 Courtesy of CultureMap Austin August 24th 2015

Austin Housing Market Healthiest in America

The Healthy Austin Market

Austin's housing market is the healthiest among large cities, according to a study from WalletHub. 

Austin was ranked No. 1 out of 62 U.S. cities with more than 300,000 residents, the report found.

For the overall study, analysts compared 300 cities nationwide in several size categories across 14 metrics, including foreclosure rate, median home price, vacancy rates, population growth and unemployment rates to determine their "health." Seven other Texas cities were on the list of large cities analyzed:

• No. 10: Fort Worth
• No. 14: San Antonio
• No. 15: Corpus Christi
• No. 17: Arlington
• No. 24: Dallas
• No. 26: El Paso
• No. 55: Houston

Also in Texas, Plano and Frisco near Dallas were named the healthiest midsize and small city markets, respectively. Frisco claimed the No. 1 spot overall, with Allen, Texas, at No. 2 and Plano at No. 4. Allen also ranked No. 2 on the small cities list.

Austin's home market is undoubtedly strong. It was recently announced that Austin home sales have hit an all time high.  However, a handful of reputable sources on the national level have recently deemed Austin homes to be significantly overvalued. 

Courtesy of www.bixjournals.com

Thinking of Renting? Think again

Thinking of Renting? Think again

We know rents are high, but now we know for sure that they're higher than paying a mortgage. Like, a lot higher.

Zillow's newest affordability report reveals that rents hit their least affordable point in the second quarter of 2015, when U.S. renters were shelling out 30.2 percent of their monthly income for that temporary roof over their heads. Fifteen years ago, it was only around 24.4 percent.

In contrast, mortgages are costing homebuyers only 15.1 percent of their monthly income. Before the housing bubble burst in the late 2000s, buyers could expect to budget about 21 percent for their mortgage.

In high-demand cities such as Los Angeles, San Jose, Miami and San Francisco, the rents are predictably nuts: up to 40 percent of monthly income. With Austin having one of the healthiest housing markets in the country, it sure seems like an excellent time to live in the Lone Star State.

Courtesy of CultureMap Austin, 2015

June 2015

 

 

Austin-area home sales top 3,000, $1 billion in volume in June 2015, prices remain high;
Mid-year results show 2015 on pace to exceed historical sales volume in 2014

Austin Board of REALTORS® releases real estate statistics for June 2015 and mid-year 2015

AUSTIN, Texas – July 21, 2015 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), Austin-area home sales topped 3,000 sales for the first time since July 2013, increasing five percent year-over-year to 3,051 sales for the month of June. Mid-year statistics show that Austin-area home sales increased an average of four percent year-over-year to 13,917, putting 2015 on pace to potentially exceed 2014’s historical high in sales volume.

In June 2015, total dollar volume reached $1,018,625,166 and increased by eight percent compared to June 2014. Additionally, the total dollar volume of single-family properties sold in the first half of 2015 was $4,617,178,959, a year-over-year increase of 12 percent.

Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “June’s increased home sales, combined with total dollar volume exceeding $1 billion for the first time ever, shows the amazing equity Austin homeowners have in the market and the powerful impact of real estate in Central Texas. However, this increase heightens the need to replenish and expand housing stock to help achieve sustainable growth.”

According to the report, the median price for Austin-area single-family homes increased eight percent year-over-year to $272,250 in June 2015, while average price increased two percent to $333,866 during the same time frame. Keeping with the upward trend over the last several months, less than three in 10 single-family homes sold in the Austin area were priced below $200,000.

Price increases are similar for the first half of 2015, with median price increasing 10 percent to $263,000 and average price increasing eight percent to $331,765. At the same time, homes spent an average of 50 days on the market, three more days than the same time last year.

“If this growth continues, 2015 could become another historical year for Austin-area home sales. Both homebuyers and sellers can expect a strong, competitive market for the rest of the summer selling season,” said Cooper.

June 2015 Statistics

• 3,051 – Single-family homes sold, five percent more than June 2014.


• $272,250 – Median price for single-family homes, eight percent more than June 2014.


• $333,866 – Average price for single-family homes, two percent more than June 2014.


• 42 – Average number of days single-family homes spent on the market, three days more than June 2014.


• 3,812 – New single-family home listings on the market, three percent more than June 2014.


• 6,701 – Active single-family home listings on the market, four percent more than June 2014.


• 3,023 – Pending sales for single-family homes, eight percent more than June 2014.


• 2.8 – Months of inventory* of single-family homes, unchanged compared to June 2014.


• $1,018,625,166 – Total dollar volume of single-family properties sold, eight percent more than June 2014.

2015 Mid-Year Statistics

• 13,917 – Single-family homes sold, four percent more than the first half of 2014.


• $263,000 – Median price for single-family homes, 10 percent more than the first half of 2014.


• $331,765 – Average price for single-family homes, eight percent more than the first half of 2014.


• 50 – Average number of days single-family homes spent on the market, three days more than the first half of 2014.


• 19,865 – New single-family home listings on the market, three percent more than the first half of 2014.


• 5,727 – Active single-family home listings on the market, eight percent more than the first half of 2014.


• 15,984 – Pending sales for single-family homes, five percent more than the first half of 2014.


• $4,617,178,959 – Total dollar volume of single-family properties sold, 12 percent more than the first half of 2014.

The following sections describe trends in other sectors of the Austin-area real estate market.

Townhouses & Condominiums

The volume of townhouses and condominiums (condos) purchased in the Austin area in June 2015 was 331, a 12 percent increase from June 2014. The median price for condos was $234,500, which is eleven percent more than the same month of the prior year. When compared to June 2014, these properties spent 8 more days on the market, or an average of 39 days.

For the first half of 2015, 1,510 Austin condos were sold, which is seven percent less than this time last year, while the median price was $226,250, or six percent more than the first half of 2014. Condos spent an average of 43 days on the market, one day fewer than the first half of 2014.

Leasing

In June 2015, a total of 1,861 properties were leased in Austin, which is fourteen percent more than June 2014. The median price for Austin-area home leases was $1,600, seven percent higher than in June 2014. In the first half of 2015, a total of 8,525 properties were leased in Austin, which is eight percent more than 2014, and the median lease price was $1,520, a five percent increase from the first half of 2014.


* The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.