Austin Real Estate Sales Update – Jan 2007 Stats

The Average Sales Price for single family homes in Austin was up 4.8% from the year before, to $246,595. The number of homes sold sales was down 5.4% from January a year ago, probably due at least in part to freezing weather that shut the city down for several days, and otherwise cold weather in general. Our Median Sales Price for Jan is up 3% to $176,305 and the average price per square foot of homes sold is up 5.4% to $118. I haven’t had time to get the area breakdowns done. I may start doing those quarterly.

From an anecdotal standpoint, Sylvia and I are busier than we’ve been since last summer. Seems like once the cold weather broke, activity literally spiked overnight and we’re on pace for a personal record month – in February of all months, with many of our Buyer deals encountering multiple offers. Stats chart is below. Also, in case you missed it, the End of Year 2006 Austin Real Estate Market Summary breakdown has a lot of info and appreciation stats for the Austin Real Estate market.

Austin Sales Stats January 2007
Previous Month and Year Comparison
All MLS Areas - Houses Only

Dec 2006
Jan 2007
Jan 2006
Yr % Change
# Sold
Avg List Price
Median List Price
Avg Sold Price
Med Sold Price
Avg Size SQFT
Median SQFT
Avg $ per SQFT
Avg Days on Mkt
Median Days on Mkt

10 thoughts on “Austin Real Estate Sales Update – Jan 2007 Stats”

  1. Nice stats. Just curious, but how long do you think this growth will continue? What is the biggest factor that is stimulating this growth? My guess would be all the folks moving into Austin, and the reasons they’re moving here. I wonder how much of this movement is driven by psychology vs. economics. Don’t get me wrong – I’m all for appreciation, but I am a *little* concerned that at some point in the near future the good numbers will be driven up artificially. Maybe not in a .com boom kind of way, but artificial nevertheless. I’d like to do my own homework on Houston, Dallas, and San Antonio to get a real comparison, and if you have some information handy from those markets, I’d like to hear what you have to say. Thanks again for the stats.

  2. Hi Mare,

    I think we’re in the second year of a 5 to 7 year run. Job growth is the biggest factor. I don’t have stats for other Texas cities, but if you find someone posting them regularly, like I do here for Austin, I’d like to know about it.


  3. Mare,

    One important difference I noticed as a realtor is that we don’t have excessive, unreasonable appreciation like the real estate bubble in the west did. Crappy homes, or overpriced homes take forever to sell, while good homes, located in good neighborhoods that are priced well sell quickly and rise in value.

    It’s healthy. Quality real estate moves while everything else stands still. That means buyers aren’t being unreasonable. Besides, the last year was a normal 5% growth, nothing bubble-like about that.

  4. ‘Crappy homes, or overpriced homes take forever to sell, while good homes, located in good neighborhoods that are priced well sell quickly and rise in value.’

    I agree, and it makes total sense. As a consumer, that’s exactly the kind of place I would look for. I understand how supply and demand affect the market – what I’m most interested in is what drives demand, and therefore prices.

    I went back and reread the statistics that Steve posted under Austin Real Estate Appreciation, and there was an interesting comparison between Round Rock and Austin. Round Rock saw some appreciation, but not as much as Austin. He said that a big reason for this is the amount of new contruction going on – Hutto, Pflugerville, etc. Still, a good home in a good neighborhood in Round Rock is ~$80-$90/sq.ft. In Austin, it’s ~$100+ (I know there are some outliers there, but these are decent averages). So, in a good neighborhood in Round Rock, I can get more house for my money. Just because I may not see a bigger appreciation in the future, I’m still saving. That extra money goes into my Roth, my IRA, my high-yield savings account, equity in my home, paying off a higher interest loan, having more money put away in savings, etc. Investing in a vehicle with compound interest sounds like it would more than balance the difference of real estate appreciation between Round Rock and Austin.

    I’m making the assumption that people DO actually take this into account. What determines ‘quality’ real estate? What argument would you give for me to buy a home in Austin, versus a home in Round Rock (aside from the rate of appreciation)?

    ‘Job growth is the biggest factor.’

    Of course, it doesn’t make sense to relocate if you can’t find a job. And we are seeing more jobs here, but there’s more to that. What makes Austin so darn great? Why would I choose Austin over Raleigh/Durham, North Carolina? They also have a nice tech economy, the cost of living and real estate market is comparable to here, they have nice weather, etc. Austin doesn’t have the market cornered on these favorable conditions, which leads me to the conclusion that perception is a very close second to job growth, and that perception can be fickle. I don’t trust it.

  5. Hi Mare,

    Asking what makes Austin a better choice than another city is almost like asking what makes chocolate ice cream better than strawberry. There is no right answer. Austin is not a better place than Raleigh per se. It may be better *for you*, or for someone else, but at some point personal factors and preferences are the final determinant. And yes, different people will have different perceptions of what Austin has to offer.

    For my family, the thing that makes life so wonderful in Austin is the friends we have and the lifestyle available to us here. One of our clients moved here from Los Angeles and immediately met some very wonderful people with whom she has become a close friend. *That’s* what makes a place special.

    But as the saying goes: no matter where you go, there you are. Geography doesn’t make one happy. It can help. But the relationships we build and the manner in which we spend our free time make life what it is. I’m sure there are blessful people in Anchorage Alaska, just as there are angry, unhappy people in Austin TX.


  6. Steve – since you work with folks who are moving here, what do they say about Austin? What are their perceptions? Do they ever discuss why they chose Austin over other places?

  7. Hi Mare,

    A good resource for answers to that question, about why people move to Austin from other places, can be found at the online forums at the following link. The reasons are diverse, but a common thread seems to be affordability and quality of life in Austin.

    Browse through past discussion threads there, or do a search, and you’ll find plenty to read rregarding reasons why people come to Austin.


  8. Mare, It’s very hard to make a comparison between Round Rock and Austin if you haven’t spent a period of time to look around. But once you lived here for a few months, you can make a pretty good judgment on which one is more desirable. I think that’s where the price difference is factored in.


Leave a Comment