In a housing market like Austin where one in three home listings (per the MLS) fails to sell despite local economic indicators looking good, is University Hills faring any better?
It’s certainly a different picture to the one six months ago where the number of foreclosed homes was bringing down list prices and perception of home values. The impact of the distressed homes made for a temporary dip in prices. While there are still a few foreclosed homes set to close soon, there are none currently on the market and we’re seeing mostly equity sales. Remodeled and renovated homes above $200,000 are starting to appear again with eight selling at the time of writing in 2011.
As predicted earlier this year, investors are flipping homes from the distressed market to the upper end of the resale market. This is what I wrote in my May 2011 University Hills newsletter:
“Home sales in the area have been dominated by foreclosures as the low average sales price indicates.
In the last year, almost one in three sales in University Hills has been a foreclosed home. The good news is that only 4 out of 21 currently active listings are foreclosed, and the discount inventory has been clearing up. Expect some home flipping activity in the next quarter.
Remodeled home sales are faring well with several under contract including one which failed to sell last year and went off the market. We’re getting to a state now where inventory is low and sales are consistent – demand is steady and showings are up over last year. This is a good indicator that the very local market is shifting back towards a sellers’ market. This is long awaited good news for sellers.
The market remains broad – sales prices in the last 12 months have spanned from $67,900 to $214,000, and only now are we seeing contracts on two of five homes at the upper end of the market (>$225,000)”
Will 2012 be a good year to sell your home in this sleepy East Austin neighborhood? It’s early to say, though I always recommend getting your home on the market before the Spring / Summer rush when there is less competition for the available buyers. Call 512 215 4785 to find out what your home is worth, or check out the competing University Hills homes for sale.