Analysis 78704: If you want to compete
I ran this analysis this morning for a client with a property for sale in 78704 in Austin. We pretty much redo a market analysis about every 30 days for homes that have not sold. This particular analysis focuses on homes in the $500 – $700k range. So here is how the conversation goes:
I am scouring the 78704 MLS data this morning doing a follow-up CMA to see if anything has changed. First, the intuitive market review, then the data.
Market activity is definitely picking up as we are seeing a flurry of homes going under contract all around town the past few weeks. I think this is due to two factors … 1.) we see this every mid to late January, and 2.) attractive mortgages … well, and 3.) I believe Austin buyers are getting more comfortable with the economy and how that relates to Austin.
Now the data. Right now if I look at 78704 in the $500k – $700k for “homes” (not condos), there are 28 homes on the market, 2 pending and 2 sold in the last 30 days. Here’s how the data breaks down:
Active 28 homes 95 days on market $304 avg $/sqft
Pending 2 107 $242
Sold Jan 2 64 $296
The median is 53 days on market for the active properties. (Condos are on the market for longer than homes.)
The overall sales pattern for this area and price range that I am seeing is that January sales were actually lower in number than Nov & Dec but pendings are up, but not significantly (they are up from January but are slightly behind Nov / Dec).
So what does this mean? It is not a slam dunk in activity pickup … there is a pick up but it is moderate. If a seller was really motivated to get onto the pending list, I would recommend getting really competitive on price per sqft because that would increase the predictability of getting an offer. When we are in the middle price-wise in a somewhat soft market (which we are), our predictability weakens. If you have a high volume of showings and no offers, the real estate bible would suggest lowering the price. Or we sit and wait it out and quite possibly we will continue to see more and more of a pick-up.
One thing to consider in this situation would be a moderate price change ($5k – $9k reduction) as then the house hits everyone’s radar / auto searches (auto searches list new properties and new prices). On that note, I have a 78704 auto search set up for myself so I get emails every day with new listings and new prices and I see many more price reductions than new listings (meaning that most active listings are lowing their price). It’s actually a solid strategy as we need to continue to get buyers attention and the ones with auto searches set up will be the most active and attentive.
If you want to compete, you have to be competitive.
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