So Far in June, Sold Prices for Austin Texas Homes for Sale Decrease!

Although we are only 18 days into June 2008, I’m a bit disappointed to see that the average and median price of homes sold in Austin Texas from June 1-18, 2008 have decreased by 1.9% and 1.5% respectively compared to the same time period during 2007.  While this is not a large percentage decrease in sold prices, it is the first time that I’ve recorded a citywide decrease in Austin Texas sold prices since the Austin real estate downturn. 

On June 2nd Regent Property Group reported a 39% decline in homes sold and a 39% increase in homes withdrawn from the Austin real estate market when comparing May 2007 to May 2008.  So far this month between June 1 – June 18th, 476 homes sold in Austin Texas and 259 were withdrawn from the market, which is a 41% decline in the number of homes sold and a 34% increase in the number of homes withdrawn from the market compared to the same period of time last year.  So far this year (January 1, 2008 – June 18, 2008), 4,961 homes have sold in Austin, which is 23% less than the 6,462 that sold during the same time last year. 

There are many unanswered questions that will impact whether home prices will continue to weather the economic storm.  Will gas prices continue to rise?  Will the Federal Reserve enact and follow through with a strong dollar policy?  Who will be our next President and what will they do to make things better or will they just make things worse?  Will we avoid another major terrorist attack?  Our economy is teetering on improvement or disaster, and unfortunately there is no crystal ball that can tell us what will happen.  In my estimation, there is a higher risk of home prices falling in Austin Texas in the short term than the prospect of their rising.  So for now, I will continue to encourage Austin home owners who want or need to sell their home, do it now while prices are still high. 

Information provided by the Austin Board of Realtors