How a Sellers Market is Affecting Buyers
Another month has passed and the Austin real estate market is continuing to show solid growth for 2014. Last month, Multiple Listing Service (MLS) reported that 1,449 single family home within the low $200,000 medium price were sold in the Austin area alone. This is a 7% increase when compared to January 2013.
Could this have something to do with 100+ people making the daily move to Austin? Forbes Magazine named Austin, Texas one of the fastest growing cites in the country for the 4th year in a row. This year it was number one. The state capitol is at an economic rise due to Silicon Hills startup’s and presence of huge corporations moving into this great city. Let’s not forget in fall 2013, 13.2% increase of total enrollment at The University of Texas at Austin, making the institution stand at 52,213 total student enrollment.
Consequences of Rapid Growth
Growth has driven demand up and is contributing to the shortage of homes for sale in Austin. As a result of new residents moving to Austin, prices for homes are increasing every day. From our current experience, the average time a new home stays on the market is NINE days or less. And that is on the conservative side.
It is common that a well priced home has several offers in a few hours. It might not have even being shown during the day. This makes having a strong real estate agent even more important. A buyer’s real estate agent need to be quick but precise in submitting bids. The bids will be ranked among the other offers that sellers will receive. You do not want to give the wrong first impression with sloppy paperwork.
It’s not all about MLS Listings
Yes, Austin is a seller’s market right now, but there are also other ways for buyers to find their next home.
– Pocket Listings – A pocket listing is a home for sale that is not listed on the MLS database. An owner will try to sell their home off the market to test the waters. The seller could also be nervous that the home will not sell. The advantage is the home will not be labeled as stale since their is no days on the market clock. Pocket listings are usually sold via word of mouth among real estate agents. Pocket listings are a growing source of homes for sale, there are even entire websites dedicated to it.
– Rental Homes – Owners are renting their home for a reason. Their job may have relocated them. The owner may have gotten divorced. Whatever the reason is, a rental property owner can be ready to sell. They could be tired of maintenance costs or dealing with renters. If your offer is attractive, they may listen. This may seem like a shot in the dark, but a well connected agent knows which of their rental property owners are ready to sell.
Right now, the demand for homes is larger than the supply. This means that your agent needs to think outside the box. The shortage of homes for sale in Austin is not going to go away overnight. So, hopefully your agent has already informed you of these options. If not, contact our team today to explore every option to find your new home in this competitive market.