Whenever I look at the real estate market statistics I like to pick out a few interesting things you might not know simply by looking at the numbers.
It is often difficult for me to explain how dollars per square foot works when trying to price real estate. Sometimes homeowners with beautiful homes will want to take the average $/SF and multiply that by the size of their home and then add their upgrades. In reality, when using the $/SF statistic for all of Austin, the numbers will skew more based on size than condition of the home.
A great example of this is the home in Austin that sold for the highest $/SF was also the smallest home and the home that sold for the lowest price. It is counterintuitive that your home which is likely much nicer and larger wouldn’t sell for as high a $/SF as this home but trying to use this sale to estimate the sales price of your home would give you a figure that is too high.
In April we saw a big jump in the average sales price. That was expected as I mentioned last month there were many larger homes under contract and expected to close. 7 homes were sold in Austin in April on the east side of Parmer, including 4 homes sold over $500,000 by Kopa Real Estate.
April also saw additional homes being sold before they become “Active” on the market. You may have noticed there are many signs that say “Coming Soon” and then get changed to “Under Contract” before ever being marketing properly and exposed to the entire market. For someone who wants a more private sale this may be a good option. However, if you are an owner who will want to maximize the sales price for your home when you sell taking this approach is not advised. In my opinion many of these homes are being sold off market for prices that are below what I consider market value. That may be an easier sale for the listing agent but you will be leaving money on the table.
This should also be a warning to buyers who will miss out on some of the great deals in the neighborhood by waiting to see homes when they are officially listed. By that point some of the best homes at below market prices are already sold.