It's Been a Long, Hot Summer in More Ways Than OnePosted by Monte Davis on Thursday, August 9th, 2012 at 9:08am.
Hang in there, folks! Just a few more weeks, and we will have done it, survived another Texas summer. The temperature hasn't been the only thing red-hot in this neck of the woods since my last post in May, so let's do some catching up.
In my own business, we closed more transactions in the last six months than we did in all of 2011. The market is benefiting from interest rates sitting at an all-time low, and there are plenty of property bargains to be had. The specific numbers about key market trends calculated in June more than prove my point.
When you compare the June numbers to the same indicators a year ago, everything is trending upward. Sales of single-family homes are up 23% with average sale prices 5% higher than in 2011. The median sale price has jumped 8% while days on the market has dropped by 23%. Right now, on average, sellers are getting 97.3% of their asking price.
The number of leases has fallen by 3%, but it's important to remember that this number is not always accurate. Not all leases flow through the MLS system and therefore don't find their way into the statistics.
Don't get too fixated on that number. Look at the fact that the average lease price amount is up 5%, with the median lease standing at $1400, which is a jump of 8% over 2011. That means that landlords are raking in 99.6% of their rent asking prices.
For multi-family units, sales are up 16% with the average sale price up 13% and the median price up by the same amount. Number of days on the market has dropped by 23%, and sellers are seeing 98.1% of their asking price come in the door at closing.
For real estate investors, the hottest areas in Austin remain the South, SW, North, NW, and, of course, central Austin. As we move into the fall months, I see nothing but encouraging news, which has sustained the Austin market really since the recession began in 2008. This is one of the reasons why Austin Ranked Best for...everything and everyone.
Before I wrap up, let's just mention that we're about four months out from the first event at the Circuit of the Americas Formula 1 race track. And let me tell you, that is one hopping construction site, with more than 700 workers there at any given time many pulling down overnight shifts to finish the facility on time. If you haven't driven by, it's looking good.
Additionally, they've made the first ticket and hospitality packages open, and I have to admit, I've already put my money down and picked up mine. The track is one of the hottest things to come to the Austin area in decades, and investors are going to reap benefits on surrounding land in new and existing construction for years to come.
It's good to be back after a summer hiatus. Next week, I want to talk about 11 new building projects in the works from Mueller Development that are making some older homes prime investments for remodels and flips.
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