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Continued…Austin home prices up. Austin home sales are down. What about your neighborhood?

published on September 23, 2008

Below article is a continuation of my previous blog found at the following link:

Let’s now look at the more sobering reality.  When considering home sales volume in Austin in 2008, the numbers are telling.  Only one zip code in Austin had an actual increase in the number of homes sold in 2008 compared to 2007, which happens to be 78705 located in central Austin where you will find subdivisions such as Aldridge Place, Harpers, and Oakwood (**See below for a longer list of subdivisions).  The 78756 zip code in central Austin had the same number of homes sold in 2008 as in 2007.  The other 49 zip codes that we tracked had anywhere from 4% to 135% reduction in the number of homes sold in 2008 compared to 2007.  As a matter of fact, 20% of the 51 zip codes saw a reduction of homes sold in 2008 compared to 2007 at 50% or more with the average reduction of all 51 zip codes at 35%.  The top five zip codes with the greatest reduction in the number of homes sold in 2008 compared to 2007 are 78628 and 78664 in north Austin, 78741 and 78752 in central Austin, and 78730 in west Austin.  Below is the chart showing the details.

Area-Zip Code: % Increase/Decrease in number of homes sold
Central 78705: 10.81%
Central 78756: 0.00%
South 78737: -3.53%
East 78754: -5.77%
North 78758: -7.43%
NW 78669: -12.61%
South 78739: -13.39%
South 78748: -16.30%
North 78613: -16.59%
West 78620: -16.77%
North 78717: -17.33%
NW 78641: -17.77%
West 78732: -18.03%
West 78738: -19.23%
Central 78723: -20.81%
North 78727: -21.31%
Central 78757: -21.46%
North 78660: -22.31%
West 78735: -22.40%
North 78681: -23.48%
South 78745: -23.58%
East 78725: -24.56%
East 78753: -25.54%
NW 78645: -26.57%
West 78733: -26.85%
South 78749: -28.54%
Central 78703: -29.61%
South 78747: -32.20%
North 78626: -32.41%
South 78617: -32.52%
West 78734: -33.60%
South 78652: -36.00%
North 78750: -36.71%
Central 78704: -39.74%
North 78729: -40.63%
West 78736: -40.85%
North 78759: -42.15%
Central 78721: -43.04%
Central 78702: -44.27%
Central 78731: -46.43%
Central 78746: -46.89%
North 78728: -51.75%
North 78726: -52.56%
Central 78751: -56.00%
South 78744: -56.33%
East 78724: -60.19%
Central 78752: -61.90%
West 78730: -72.84%
Central 78741: -94.29%
North 78664: -123.73%
North 78628: -134.57%

What have we learned from these statistics?  First of all, we have affirmed the old adage that real estate prices are local in nature.  Where one neighborhood or zip code could be experiencing significant price declines, a neighboring area could have the opposite.  Austin real estate is no exception. 

Second, we have learned that the number of homes sold in Austin is down in just about every part of Austin aside from one zip code in central Austin.  This shows us that the economic impact for Austin real estate has shown itself in the form of reduced sales volume rather than reduced prices.  Many people are holding onto their homes rather than selling despite the fact that prices are still high.  This may indicate that most people believe that Austin real estate is a solid investment that will rebound in the form of higher sales volume and higher prices within the next few years. 

Third, the reduction in the number of homes sold in Austin Texas has a much greater negative impact than the positive impact of strong sales prices.  Strong home sales prices will help Austin “hit the ground running” when the market recovers, but sales volume will have to pick up significantly before we recover. 

Fourth, Austin homes have appreciated all over the city this year with no particular pattern.  However, homes that have depreciated have done so in areas just surrounding the central core of the City of Austin.  This may be interpreted to mean that central Austin real estate holds its value more consistently than the areas immediately outside the central core of the city. 

Finally, it is clear that Austin real estate statistics are changing constantly.  As such, it is important when buying, selling or leasing real estate in Austin that you consult a real estate professional to help you understand the market and get the best deal.  It is important to find someone you can trust, who is knowledgeable, experienced, constantly available, and who can negotiate the best deal.  At Regent Property Group we guarantee that you will get just that. 

Click here to search for Austin homes for sale by zip code!

This report has been provided by Regent Property Group, a professional Austin real estate services firm helping those looking to buy or sell a home or lease Austin office space.  The raw data in this report was provided by the Austin Board of Realtors but analyzed by Brian Talley of Regent Property Group.  Contact Brian Talley if you need help buying or selling a home or if you have a need for Austin office space.

*Definition of Austin areas within this report are as follows:
• Central: North of Ben White (Hwy 290 West and 71 east), East of Loop 360, South and West of Hwy 183
• West: West of Loop 360, South of FM 2222, East of RH 620, South of Hwy 71 (starting west of Bee Cave), North of Hwy 290, East of zip code 78663
• East: East of Hwy 183 between IH 35 and Ben White (Hwy 71 East and Hwy 290 West), North of Hwy 71 East, South of FM 734 east of IH 35, East of IH 35 between FM 734 and Hwy 183, West of FM 3177, West of FM 973
• South: South of Hwy 290, East of RH 12, North of RH 967, North of FM 1327, North of Hwy 21 just east of IH 35
• North: East of Hwy 183 North, East of RH 620 between Hwy 183 and FM 2222, North of FM 2222, West of Loop 360 between Hwy 183 and FM 2222, East of Hwy 183 between Loop 360 and IH 35, North of FM 734 (starting just east of IH 35, South of FM 3405 between Hwy 183 and RH 2338, South of RH 2338 between FM 3405 and IH 35, South of FM 971 just east of IH 35, West of 130
• Northwest: North of Hwy 71 (west of Bee Cave), West of RH 620, West of Hwy 183 North, East of RH 1174, South of RH 1869, South of FM 1869
**78705 Subdivisions: Aldridge Place, Beau Site, Buddington, Byrnes James, Carrolls L W, College Court, Country Club Lawns, Division C, East 31st Street, Grooms Add, Gypsy Grove, Hancock Park, Harper W A, Harpers, Harris Sidon, Lakeview Add, Oakwood, Park Hill, Peterson, Plainview Heights, Shoal Crest Add, Stanhope Place, Sunny Ridge Add, University Heights, W A Harper, Wendlandt & Mueller, West University (Shoal Creek)

Note: There were a handful of zip codes with fewer than 5 sales per zip code that we have not included in this report such as 78742 (East Austin), 78701 (Central), 78722 (Central), 78612 (South), 78719 (South).  78726 and 78613 are both located in the north and northwest parts of Austin but we classified them both as North Austin for the purposes of this survey.

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