Austin Real Estate Blogs by Pearl Jones

June 2024 Market Statistics

2024-07-12T10:22:00.000-07:00

In Austin MLS, residential sales units sold in June were down 20% compared to June of 2023. Active listings of residential properties remain high at 15,414 units as of today. The number of active listings are increasing as interest rates remain above 6.5% (per Mortgage Daily 6.87% on 30 year fixed conventional on 7/12/2024).

In Lake Travis ISD, residential sales units sold are down 9% compared to last June. The number of active listings are at 763 today.

If you are considering buying or selling, contact me if this is a good time to buy/sell in Austin.

Ladera Market Statistics for May 2024

2024-06-26T18:07:00.000-07:00

Ladera neighborhood in Bee Cave, an Austin suburb is showing slow sales in 2024. The attached figure shows only 3 sold properties since the beginning of 2024.

Austin MLS faces highest active inventory in over 10 years

2024-06-14T06:53:00.000-07:00

On June 14th, Austin Board of Realtors MLS shows 15,329 active single family residential properties in the MLS. The chart above shows that this has been the highest inventory ever (chart goes back to 2005), even when the foreclosures/short sales were up in 2010, where the inventory was as high as 13,820. The current interest rates, per Mortgage Rates Daily, are at 7.01% for 30 year fixed conventional loans.

What does this mean? Although we are currently at a balanced market (neither sellers nor buyers market), we are trending towards a buyers market. This would also mean that prices would have to drop if sellers want to sell. Many buyers who are in need of a loan are on standby due to the higher than normal interest rates. The property taxes and property insurance have also increased, hence, considerable additional costs to consider.

Before making a decision to buy or sell, give me a call to give you an understanding of the Austin market through my data analysis. I just recently finished a Data Science in Real Estate Course from MIT S&P and would like to apply the knowledge I gained.

NAR Reports 10 cities with most Pent-up Housing Demand in 2024

2024-01-10T09:32:00.000-08:00

Last month, I attended a NAR economic forecast, led by Economist Lawrence Yun. Mr. Yun discussed many topics. But one that I wanted to share with you, is his list of 10 cities where the market with the most pent-up housing demand. Please go to the attached link to read the full article.

https://www.nar.realtor/research-and-statistics/research-reports/markets-with-the-most-pent-up-housing-demand

In the list, Austin, has earned the top #1 spot. I am not surprised, with so many people still moving to Austin. Other Texas Cities that made the list are Dallas (#2) and Houston (#7). This will make it interesting as interest rates are forecasted to drop this spring.

If you are thinking of buying real estate, NOW is the time to buy before the increase demand surges.

SOURCE: National Association of Realtors website.

Austin Market Statistics for December 2023

2024-01-10T09:19:00.000-08:00

Austin Title reports the following Preliminary Market Statistics for December 2023 for Austin Real Estate:

Units Sold:

2,318 down 16.01% from December 2022

(This number is preliminary and may increase as sales are reported/updated in MLS)

Average Sales Price:

$548,622 down 0.48% from December 2022

Average Days on the Market:

88.06 days up 26.22 days from December 2022

Median Sales Price:

$436,640 down 1.41% from 1 year ago

In conclusion, 2023 was not a good year for Austin Real Estate. The past 4 years have been much better.

SOURCE: Austin Title

Subject to or Wrap mortgages

2023-12-14T09:20:00.001-08:00

As mortgage interest rates increase, we are seeing some creative transactions such as seller paying buy down rates for the buyer, buyers assuming seller's mortgage (if current mortgage allows) and subject to financing aka wrap mortgage.

A real estate lawyer, explains in the attached image why he advices against wrap mortgages. To explain, a wrap mortgage is when the buyer makes the payments in behalf of the seller without assuming the mortgage, which means the mortgage will remain under the sellers name though the deed has been transferred to the buyer. The risk is that the buyer may stop making payments without the sellers knowledge, hence, the property may go to foreclosure risking the sellers credit. In addition, the mortgage company may accelerate the balance of the mortgage once they find out a transfer of ownership occured. A brokerage I worked for will not allow wrap mortgages because of the risk of liabilities. Most of the time, the sellers don't understand exactly what they're getting into though a lawyer is needed in writing the contract in this type of transaction.

2023-11-17T08:14:00.000-08:00

This chart shows the relationship between the active single family residential property listings (in units) vs sold listings in the Austin Board of Realtor MLS. In October, it shows 12,870 actives vs 2,585 units sold. The supply is increasing rapidly as the demand slows especially in the cooler/winter months are here. The current interest rate is at 7.92% (source: ABOR)

2023-11-17T07:54:00.000-08:00

Here are the statistics for Austin's Real Estate Market. In October 2023, unit solds (for single family residential) in Austin were 4% higher than last October. In Lake Travis ISD, there was an increase of 10% compared to last October. This is great news as we have been seeing less sales since the beginning of this year except in May, where we saw a small increase. With the interest rates at 7.92% for 30 year conventional, mortgage companies have been creative and offering rate buy downs.

Inventory in Austin Increases as Mortgage Rates Increase to 8%

2023-10-20T07:52:00.004-07:00

This graph goes all the way back to 2004, as far back as Austin Board of Realtors has the data. As of September 2023, the active residential properties are at 13,027. The average days on market of these active properties are 68. In March 2021, we saw low inventory at 2,497 properties active with an average of 30 days on market. The last time we had over 13,000 active listings was back in July 2016. As the mortgage rates increase (currently at 8%), we will probably see more properties for sale. Stay tuned for future blog posts.

September 2023 Austin Market Statistics

2023-10-20T07:36:00.000-07:00

In Austin, TX, single family residential closed units in September 2023, were down 25% compared to last September.

In Lake Travis ISD, single family residential closed units in September 2023, were down 12% compared to last September.

As of today, 10/20/2023, there are 12,453 active single family properties in the market, 627 of these properties are in Lake Travis ISD. As the interest rates increase (currently 8%), the number of homes for sale has increased.

September Market Statistics

2023-10-11T18:51:00.001-07:00

Reported by Austin Title:

Units Sold:

2,531 down 22.58% from Sept 2022

(This number is preliminary and may increase as sales are reported/updated in MLS)

Average Sales Price:

$571,970 down 1.95% from Sept 2022

Average Days on the Market:

41 days up 6.37 days from Sept 2022

Active Single Family Homes are on the rise

2023-09-19T09:40:00.000-07:00

Looking at Austin's August statistics, the number of active single family homes are 12,808 units. This is relatively high considering just about 2 years ago, March 2021, we had a hot market at only under 2,500 active listings.

In retrospect, back in June/July 2010, we had over 14,000 active listings, the highest its been since the last recession.

Why do you think Austin's inventory is so high? Could it be because our interest rates are currently averaging 7%? Let me know your thoughts.

Behavior of Home Buyers when rates are high

2023-09-16T20:30:00.005-07:00

I obtained historical interest rate data from themortgagereports.com and the number of units single family residential sold from 2004-2022 in Austin, TX from Austin Board of Realtors; then I plotted the data (see graph below). We know that low interest rates tend to increase demand for property. We saw this in Austin in 2021 (per graph).

Currently in Austin, we have over 12,000 active homes in the market, thanks to the current 7% interest rate. Last week, I attended an economic forcast and the speaker shared that over 50% of today's buyers (nationally) are first time home buyers.

What is the market like in your area? Are you seeing high inventory or multiple offers? Please comment below and let me know.

I gave myself a Face Lift!

2023-09-15T14:49:00.002-07:00

One thing I did not plan in my life is to back to school and re-learn coding. Well, I wasn't really expecting to learn how to become a full stack developer, nor become a front end or back end developer. Truthfully, I didn't like any of this in one bit. I did learn how to program in HTML, CSS, JavaScript, learned node.js, bootstrap, MySQL, NoSQL, MongoDB, Insomia, Git, GitHub, Heroku and much more.

While I was learning all this for 12 weeks, I decided to write my websites from scratch, hence, the face lift. Here are my 2 websites:

www.PearlJonesHomes.com

www.ATXShortsale.com

Well, give it a look and let me know what you think. I truly enjoyed coding my website but I would not want to be doing this every day.

Where did I go?

2023-09-15T14:32:00.004-07:00

I am back at Home Stars of Texas Realty.

While I was a Real Estate Coach, COVID hit in 2020. Life stopped, my mom passed away, and so did many close friends. When travelling opened up, I decided to take my sons to Maui in July 2022. After I got home, I decided to solo travel. I backpacked to Bali, Phuket and Boracay. During this time, I visited my mom's grave several times, stayed at my parent's home in Manila, grieved and wept.

Fast forward to 2023, I decided to go back to school. I took coding classes at University of Texas in Austin, completed all 15 challenge homework, averaged 87. I didn't care for the class I took so I opted as a non participatory student.

During coding class, I decided to look into Data Analysis and specialize in Real Estate. That is what I have been doing, learning and building my profile as a Real Estate Data Analyst. What this means is that I will still be a full time Real Estate Broker and do sales, but I am adding a new service which is Investment Analysis. Stay tuned as I go through my learning. I am very excited about this path. I cannot wait to get started.

I am back at Keller Williams Realty as the Productivity Coach

2019-09-03T18:47:00.000-07:00

Please read my attached announcement as the new Productivity Coach for the largest Brokerage in US, at the Lake Travis Market Center. I am excited to be in this position.

NEW LISTING 204 Sunrise Ridge Cove, Lakeway

2018-02-06T14:51:00.000-08:00

Looking for a condo in gated community in Enclave at Alta Vista with hill country views? This is it! This is a 4 bedroom, 3 - 1/2 bath condo with office, 2 car garage, 3 levels. The lower level is a finished basement you can use as 4th bedroom, game room or media room. There is also a large storage space. All levels have a balcony to look out to the greenbelt views! Priced at $399K.

January 2018 Real Estate Statistics

2018-02-06T14:47:00.000-08:00

Units Solds in Lake Travis ISD and throughout Austin are the same compared to last January. Know the market by finding out if its a good time to buy or sell before you decide. Give me a call at (512)786-7355.

Review from 113 Sebastians Run Seller

2017-11-14T08:10:00.001-08:00

I recently SOLD 113 Sebastians Run, in Lakeway. This home was absolutely stunning and the views were breathtaking.

Here is the review from the seller: Thank you Kate and John, it was a pleasure working for you!

"Pearl was great to work with. She was always positive and addressed all of our concerns and worries with such professionalism. Selling our home after 12 years was such an emotional roller coaster for us. She was so calm, insightful and trustworthy. It made the selling so much smoother. She really is an expert at selling homes. We are so thankful we choose her to sell our home."

Kate and John

JUST SOLD 103 Whitley, Testimonial from Sellers

2017-11-14T08:04:00.001-08:00

Another happy clients recently sold 103 Whitley in Ridge at Alta Vista. Buyers from Oakland, California moved in as soon as they closed.

Here is what my clients/sellers have to say, Thank you for allowing me to help you!

"Pearl, thank you so much for your support. You have not missed a beat in any step of the processing of selling our house. From the very beginning of getting the house in shape to list it, all the way through getting past the option period to lock in the contract. My wife and I had no doubt that you are great at what you do, but it was still impressive to actually see you in action. When I am ready to sell my next place, you will be first in line to get the listing."

Bali

Mortgage Forbearance for Harvey and Irma Victims

2017-09-12T12:15:00.002-07:00

I just received an email from my mortgage company asking if I was affected by the recent storms. I wanted to share this information to all. If you were affected by Hurricane Harvey or Irma and you are unable to make your monthly mortgage payments, your lender/mortgage company may have a forbearance program which allows a temporary suspension of your mortgage loan payments without late fees for 3 months. Contact your mortgage company ASAP to inquire if this applies to you.

JUST LISTED 103 Whitley, Lakeway, TX 78734

2017-09-07T14:10:00.000-07:00

Beautiful one story home in gated luxury community of Ridge at Alta Vista in Lakeway. 4 bedroom, 3.5 bath, study, formal dining room, large family room with fireplace and high ceilings, 3 car garage, 3,254 sq ft per TCAD. Home has cork floors, some tile, window treatments, high security window film, security cameras and an awesome salt water pool, backyard firepit with covered patio. 103 Whitley is available for 549K. Please call Pearl Jones at (512)786-7355, Broker, Home Stars of Texas Realty for your showing,

Can Harvey affect Austin's Real Estate?

2017-09-07T12:48:00.000-07:00

A natural disaster or a catastrophe, isn’t exactly my favorite topic but we all know that these certainly affect real estate.

As we know, Hurricane Harvey affected at least 60 counties in Texas alone, at least 100,000 homes, and an estimated over one million people were displaced due to the flooding and high winds. Here in Austin, we immediately felt a gas crisis. Several gas stations ran out of fuel by Monday after the storm, as news spread about refineries in Houston, shutting down. The gas shortage caused chaos as people dashed to the pumps in panic. I agree, I was one of those people that paid a premium, and watched gas stations increase (regular unleaded) prices from 2.09 to 2.69 (in 4 days).

Katrina (2005), displaced about 400,000 people. After the hurricane, about 90,000 people left New Orleans, 50,000 of those relocated to Houston, and the rest, relocated to Austin, Florida, etc.

Let’s talk about Houston. It is a concrete jungle where water can only go to the sewers, once the sewers are full, they overflow to the roads. Second, the topography is flat, and where there is dirt, it is limestone just like in Austin, where the water stays on top and does not seep into the ground. Based on the ratio between Harvey and Katrina, Harvey affecting 250 times more than Katrina, or estimating about 225,000 people are likely to relocate.

After Katrina, the real estate in the areas affected in New Orleans felt a 22% loss in the values of their homes. It’s too soon to determine how Harvey will affect South Texas’ real estate.

Here are my personal thoughts. This information is just based on my research and my many years in real estate, I am not an economist.

People are most likely to move out of South Texas due to:

1) Those from Houston whom have seen way too many hurricanes (prior Hurricane is Rita, but endured a chaotic evacuation), and possibly Irma;

2) Those who cannot rebuild their properties because they do not have flood insurance, will most likely walk away;

3) Those who receive a settlement from their insurance may walk away instead of rebuilding;

4) Those who are currently in shelters outside of Houston and are not able to find affordable temporary housing due to increased rent and lack of hotel vacancies are pushed out of Houston;

5) Other reasons

The main point is, where would these 225,000 people most likely to relocate to? They are more likely to stay in Texas. Even if 100,000 people moved to Austin, that would be about 25,000 properties to be rented or sold, a surge in a small period. Just in comparison to 2016, 33,000 properties listed on MLS SOLD in Austin, per ABOR. Due to the unfortunate loss, this certainly would be good for Austin’ real estate.

Here are more interesting information I received today:

Hurricane Harvey is expected to cause rents in Houston to increase as much as 10%. Home prices are also expected to jump due to even lower inventory.

Hurricane Harvey has caused jobless claims this week to rise to a 2-year high. The weekly increase of 62,000 was the largest since November 2012.

August 2017 Real Estate Statistics

2017-09-07T12:18:00.002-07:00

It is September and August statistics are in. In Austin, Units solds in Austin are down 3% compared to last August. In Lake Travis ISD, units sold are down 12% compared to last August. See graph below for further illustration compared to the past years.

April Real Estate Statistics

2017-05-10T13:51:00.000-07:00

In April, Units solds in Austin, is 5% lower than last April. In LTISD, units sold are 15% lower compared to last April. In March, LTISD units sold were 12% lower compared to last March. These numbers were taken from the MLS on 5/8/2017.