Wednesday, February 25, 2009

Northwest Austin Homes: Believe it or Not, North and Northwest Austin Real Estate is a SELLERS MARKET!

North and Northwest Austin Real Estate: North and Northwest Austin Real Estate is a Sellers Market!
I know it may be hard to believe but it is true. All of the national and so-called "local" news talks about Real Estate being a buyers market right now. Well, as they say, Real Estate is local, sometimes even hyper-local. North and Northwest Austin are actually in a sellers market. If you believe what they write in the local papers, you may think it is a horrible time to sell a house. Is this true? No. Does this mean that it is not a good time to buy a house if it is a sellers market? No. Are there deals on NW Austin homes for buyers? Definitely. Can you sell your home for more today than you would have in the past? Possibly. Let me explain a few things...

1. What do you mean buyers market or sellers market? Well, when it comes to purchasing anything, the price depends on the simple factors of supply and demand. If the supply is up and the demand is down for homes, prices will drop to entice the few buyers out there. On the other hand, if the demand is up and the supply of homes is down, like in NW Austin right now, prices will generally be higher because the market will allow a higher price to sell the more desired product, in this case Houses in Northwest Austin.
2. How do you define a buyers market or sellers market? The market is defined generally by looking at how many months of inventory are available within a specific market. In other words, if homes continue to sell at the same rate that they have for the past few months, how long would it take to diminish the supply of homes without adding new listings to the market. If there is less than six months of inventory it is considered a sellers market, If there is more than six months of inventory, it is considered a buyers market.
3. Lets look at info from the Austin Board of Realtors MLS to see what is going on with Northwest Austin Homes. I am looking at Homes that fall within the boundaries of areas NW and 1N. There are 660 total listings. That breaks down to 216 active listings, 85 pending listings and 358 listings sold in the last six months. This includes homes of all, conditions, sizes, ages and price ranges in North and Northwest Austin. Based on the last six months, we have about 3-4 months of inventory!!! What does that mean? It means that North and Northwest Austin are Sellers Markets!
4. Now lets look at homes that are in the "average sales price range for homes in North and Northwest Austin. I would say that is anywhere from $150,000 to $300,000. There are 377 total listings. That breaks down to 92 active listings, 54 pending listings and 231 listings sold in the last six months. Based on those numbers, in the average price range of homes in North and Northwest Austin, there is just over two months of inventory. That is definitely a sellers market!
5. This all means that as a seller you could possibly sell your home for more money today than you could have in the past. House values in North and Northwest Austin continue to go up and the demand is there to support it.

This all adds up to a very interesting time for buyers and sellers of Homes in North or NW Austin because if you listen to the news or even most REALTORS, they would encourage sellers to wait but, what would you wait for? Homes are selling. This doesn't mean that it is a bad time to buy. There are plenty of homes on the market that are being sold by homeowners that are scared, misinformed, or desperate to sell their home. That adds up to a deal. I definitely feel for people that are going through something in their life that make is necessary to sell, but it is not a time to panic. There are misinformed REALTORS giving their scared clients even scarier advice. There are serious deals available.

The people that I have been working with to list and sell their homes know what I am talking about. Last week I closed a deal on a house that I had listed in the Balcones Woods subdivision in North Austin. I do an immense amount of homework when I list a home. When we listed the home at $300,000 I got responses from REALTORS that "specialize in the area" that said it was overpriced and I would not be able to put a deal together anywhere close to that price. Well, long story short, they were wrong. We put together a deal in less than a week for a sales price that is very close to the asking price without paying any of the buyers closing costs and not allowing any money for repairs...one week! If my client was working with one of those REALTORS, it would have sold in a week but for quite a bit less. The seller couldn't be happier with the deal that was put together. I don't have a crystal ball but it is important to be educated on factual information and when you employ a professional to sell your home, make sure they know the facts!

If you are trying to decide if now is the right time to sell, lets look at the facts and get you more money for your home. Contact me today and we can talk about it.

If you are thinking about buying a home, now is a great time. Lets find a deal for you.

Posted by Brian W Martin. Brian is a REALTOR for The Pinnacle Group of Keller Williams specializing in Assisting Buyers and Sellers get the facts and make educated decisions about Real Estate in North and Northwest Austin, TX

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