Austin Real Estate Market Update for November

It has been a great year for the Austin housing market! We have experienced an 11.7% increase in homes sold, along with a 6.9% increase in sold prices and a 21% decrease in days on the market.

October 2012 was strong with a 33.4% increase in homes sold and a 14.3% increase in median sold prices. Inventory continues to stay very low, with a 27.4% decrease compared to this time last year. Amazingly, interest rates have decreased to an average of 3.40% for a 30 year conventional loan today with 0.7 fees/points down per freddiemac.com. The Austin unemployment rate (Austin-Round Rock-San Marcos) reduced slightly from 5.9% in August 2012 to 5.3% in September 2012, which is a healthy unemployment rate.

With low inventory, low interest rates, and a low unemployment rate, Austin should continue an upward trend in regard to prices and sales volume for the foreseeable future!

Market Snapshot (Year-to-date compared to same time period during the year 2011)

• 11.7% increase in homes sold

• 6.9% increase in sold prices (total dollars)

• 4.6% increase in sold prices (per square foot)

• 21.21% decrease in days on market

October 2012 compared to October 2011

• 27.4% decrease in homes actively for sale compared to 11/07/11

• 24% increase in homes pending sale compared to 11/07/11

• 33.4% increase in the number of single-family homes sold

• 8.8% increase in median single-family sold price per square foot

• 14.3% increase in median sold price (total dollars)

• 18.6% decrease in the time it is taking to sell a home

• 41.8% decrease in number of homes for lease compared to 11/07/11

• 3.9% decrease in the number of homes leased

• 25% increase in leased price per square foot

• 42.2% increase in the time it is taking to lease a home

Between January 1 and November 12, 2012, there were 8,952 single-family homes sold within Austin with a median sold price of $125.47 per square foot ($262,000) and averaging 52 days on the market. During the same time period in 2011, there were 8,011 homes sold with a median sold price of $120 per square foot ($245,000) and averaging 66 days on the market. This is an 11.7% increase in the number of homes sold, a 4.6% increase in the median sold price per square foot, a 6.9% increase in sold prices (total dollars), and a 21.21% decrease in the days on market compared to the same time period in 2011.

Austin Real Estate Market Summary for November 2012:

Sold: As of 11/12/2012, there were 811 homes sold in Austin, Texas during October 2012 compared to 608 during the same period of time in 2011 (33.4% increase). Overall home prices (per square foot) have increased 8.8%, and the total dollar sales prices have increased by 14.3% during October 2012 compared to October 2011, with a median sold price of $129.50 per square foot ($270,000) in October 2012 compared to $119.04 per square foot ($236,225) in October 2011. In October 2012, these sold homes averaged 57 days on the market compared to 70 days on the market in October 2011, which show

there was 18.6% decrease in the time it is taking to sell a home this October 2012 compared to last October 2011.

Active: There are 2,040 single-family homes actively for sale within Austin as of 11/13/12, averaging 98 days on the market with a median list price of $148.02 per square foot ($381,813). This is an 8.7% decrease from the 2,235 single-family homes for sale last month on 10/08/12 and a 27.4% decrease in homes actively for sale from the 2,809 single-family homes that were actively for sale within Austin on 11/07/11.

Pending Sale: There are 1,223 houses pending sale in Austin as of 11/12/12, averaging 53 days on the market with a median price of $126.50 per square foot ($249,900). This is a 2.9% decrease from the 1,260 single-family homes pending sale last month on 10/10/12 and a 24% increase from the 985 homes that were pending sale on 11/7/11.

Withdrawn: There were 226 single-family homes withdrawn from the Austin real estate market during October 2012, compared to 357 homes withdrawn during October 2011, which is a 36.7% decrease. The homes withdrawn in October 2012 averaged 112 days on the market and were listed for sale with a median price of $147.40 per square foot ($379,000). This compares to an average of 133 days on the market with a median price of $133.30 per square foot ($283,400) for homes withdrawn from the market during October 2011.

Leases: As of 11/12/12, there are 825 homes (all types) for lease within Austin with a median lease price of $1 per square foot per month ($1,623 per month) and averaging 37 days on the market. This compares to 11/07/11, when there were 799 homes (all types) for lease within Austin with a median lease price of $0.95 per square foot per month ($1,450 per month) and averaging 39 days on the market.

During October 2012, there were 685 homes (all types) leased in Austin compared to 713 leased in October 2011, which is a 3.9% decrease. In October 2012, the median leased price per square foot was $1 per square foot per month ($1,495/mo) and averaged 26 days on the market compared to $0.80 per square foot per month ($1,350/mo) and 45 days average on the market in October 2011, which shows the lease price per square foot has increased by 25% and there was an 42.2% decrease in the days on the market.