Central Texas foreclosure postings are down for the 6th consecutive month. At 1,059 postings the monthly figure dropped below the 1,100 per month mark for the first time in 10 months.
Pending sales are way up (41% in June and 62% in May) for the second month in a row…so we’re comparing current year numbers to those that were skewed last year due to the (arm)pit created by the ending of the national home tax credit program. You may call this a recovery from the hangover created by the tax credit program. What a stinker.
Closed sales are down 18% comparing June ’10 to June ’11, for the 5th month in a row. Inventory is down almost 20% and average days on the market is up to 82 days, 21% higher than last year in the same period. Interestingly the median sales price is $190,000 and continues to edge up.
So we have 11,500 homes for sale now compared to the 14,000+ last year at this time…that’s 2,500 fewer homes to pick from and so the price will continue to go up for those properties in locations in higher demand. If the property doesn’t sell in the first 60 or so days…the seller will either opt to take a lower price, thus the reason the percent of original list price received is 93%; – or – take the property off the market, which has influenced the regions 15% drop in new listings and 20% drop in inventory.
Rents are going up all over town. Currently you will find a 5-25% hike in the monthly rent in just the last few months. It’s astounding.
Sum it up and inventory will continue to tighten in centrally located and first-ring neighborhoods…the area’s that will probably be most affected seem to be south Austin between William Cannon and Slaughter and the area north between 183 and Palmer. This is not to say there won’t still be deals..there will. The typical late summer through winter market may create a stall until next spring. With interest rates as low as they are, and potential increases on the horizon it’s safe to say now is a good time to invest in Austin.
Statistics provided by Austin Board of Realtors and ALTOS.