Austin Texas Real Estate: List Prices and Sales Prices
In an earlier blog, I discussed the cyclical nature of the Austin Texas real estate market. When viewed over a several-year period, the market cycles are predictable in many ways. What cannot be foreseen from the historical data is what will happen in the future—what the highs and lows of the market will be.
Just a year or so ago, homes in the Austin market, because demand was high, were "flying" off the market. In the Southwest Austin Sendera neighborhood where I live, it was not unusual for sellers to get multiple offers and to sell their homes for list price or above. That is not the norm in the current (April 2009) market. Another thing that is impacting Austin real estate sales, in addition to lower sales volume and longer sales times, can now be seen: the percentage of original list price (OLP) that sellers are getting for their homes is down. (Based on information from the Austin Board of REALTORS® for the period 1.1.05 through 2.28.09.)
The chart featured above was published by the Austin Board of Realtors® in its February 2009 Residential Sales Report. From January 2005 through mid 2007, when the Austin real estate market began to slow down, sellers could expect to receive, on the average, between 95% and 97% of their OLP. (It also can be seen that sellers typically average a lower percentage of their OLP in the winter months than they do in the rest of the year.)
From the middle of 2007 to the present, this average % of OLP that sellers get on the sale of their homes has declined. In February 2009, the percentage was 91.6%. (That percentage will venture up some if the historical cycle holds true for the coming months.) Can you say, “That hurts?” Maybe not, if you are a buyer!
What does this mean for sellers? It means that you may need to adjust your expectations. It does not mean that the sale of your home will net the average percentage of sales price to OLP. What you get may be higher or lower. It is important to price your home well—as seen in relation to what is happening in your local area of the market, the neighborhood in which you live.
If you are a buyer, the average does not necessarily mean that you can make an offer or expect to get a contract at 91-92% of the seller’s OLP. So many factors determine the market value of a home. These include its condition, features, location and the comparable homes sold in that neighborhood. You may be able to get a home for less than the average % of OLP. You may have to pay more. Remember, the number quoted in the report is an average.
If you are thinking about buying or selling a home in the Austin Texas area, I would like to assist you. You can reach me at (512) 913-1557. 
Jim Gilbert, REALTOR, Heart of Austin Homes. Licensed (#0536692) to sell real estate in the State of Texas.
