August 2007 real estate numbers for Austin:

New listings are up by 3.15%.

Solds decreased by 14.63%.

As for Average Prices:

The “New Listings” average list price is up 14.56% to 299,055.

Sold average sales prices increased 8.33% to $256,035 compared to $236,355 in 2006.

We had 9,027 active listings during the same week in 2006?  Today there are 11,261 active listings!  That is a 24.75% increase from 2006.  

- Numbers provided by Alamo Title.

What do these numbers mean? The Realtors I’ve spoken to are seeing a decrease in showings on their listings yet there are still plenty of buyers out there to keep a lot of us busy, the market continues to move forward.  The number one thing that pops out to me the most is the continued increase in listing price even though there are increased listings and decreased solds. There are more Expireds and Withdrawns happening now too.

If you are selling a home and want to stay behind that curve on pricing your home too aggressively because then you’ll be forced to follow the rest of the listings on the way down. I’m seeing a lot more price reductions now as a number of sellers where pricing their homes 5-10% above the market. Only in Super hot areas would anything like that sell.  Otherwise is most areas those homes just sat on the market with very little showings and are now starting to lower their prices to where the market is currently for their area. We should continue to see plenty of buyers between now and the end of the year, but there will also be some good deals as motivated sellers will start to realize their over priced listings may not sell thus they then find themselves chasing the downward curve.

Some optimist feel our area and especially real estate will be strong to quit strong for the next several years as this area continues to boom in every way in both residential and commercial.  Other pessimist say that the mere “hype” or lack of confidence in the National real estate market will take it’s toll on our market even though the Austin area continues to be a thriving market in terms of growth and economics.  Generally, the market does tend to over react when it is hyping something or cautioning something.  The Fed did cut the interest rate a ½ percent which is what the market was looking for.  However, one reporter who interviewed the ex-chairman Allen Greenspan said she would guess that Greenspan would only want a ¼ percent rate cut.  The difference in cut is not yet determined on how it will affect the short and long term market place.