Interest rates are low, averaging 3.63% for a 30 year conventional loan today with 0.8 fees/points down per freddiemac.com. The Austin unemployment rate (Austin-Round Rock-San Marcos) during December 2012 showed a slight increase from the previous month at 4.9% in November 2012 compared to 5.0% in December 2012.

February 2013 Compared to February 2012

• 37.38% decrease in homes actively for sale compared to 3/11/12
• 16.18% increase in homes pending sale compared to 3/11/12
• 18% increase in the number of single-family homes sold
• 4.82% increase in median single-family sold price per square foot
• 8.17% increase in median sold price (total dollars)
• 26.39% decrease in the time it is taking to sell a home
• 8.62% increase in number of homes for lease compared to 3/11/12
• 8.53% decrease in the number of homes leased
• 7.78% increase in lease price per square foot
• 11.11% decrease in the time it is taking to lease a home

Between January 1st and March 14, 2013 there were 1479 single-family homes sold within the Austin city limits with a median sold price of $127.89 per square foot ($260,000) and averaging 53 days on the market. During the same time period in 2012 there were 1334 homes sold with a median sold price of $120.21 per square foot ($239,000) and averaging 72 days on the market. This is a 10.87% increase in the number of homes sold, a 6.40% increase in the median sold price per square foot, a 8.79% increase in sold prices (total dollars), and a 26.39% decrease in the days on market compared to the same time period in 2012.

February 2013 Statistics

Sold: As of 03/14/2013 there were 665 homes sold in Austin, Texas during February 2013, compared to 598 during the same period of time in 2012 (18% increase). Overall home prices (per square foot) have increased 4.82%, and the total dollar sales prices have increased by 8.17% during February 2013 compared to February 2012, with a median sold price of $127.34 per square foot ($259,000) in February 2013 compared to $121.49 per square foot ($239,450) in February 2012. In February 2013, these sold homes have averaged 53 days on the market compared to 72 days on the market in February 2012, which shows there was 26.39% decrease in the time it is taking to sell a home this February 2013 compared to last February 2012.

Active: There are 1,476 single-family homes actively for sale within the city limits of Austin Texas as of 3/14/13, averaging 89 days on the market with a median list price of $166.55 per square foot ($450,000). This is a 3.58% increase from the 1,425 single-family homes for sale last month on 2/11/13 and a 37.38% decrease in homes actively for sale from the 2,357 single-family homes that were actively for sale within the city limits of Austin, Texas on 03/11/12.

Pending Sale: There are 1,551 houses pending sale in Austin as of 3/14/13 averaging 46 days on the market with a median price of $134.58 per square foot ($277,745). This is a 16.18% increase from the 1,335 single-family homes pending sale last month on 2/11/13 and a 20.79% increase from the 1,284 homes that were pending sale on 3/11/12.

Withdrawn: There were 77 single-family homes withdrawn from the Austin Texas real estate market during February 2013 compared to 150 homes during the same period of time during February 2012, which is a 48.67% decrease in withdrawals. The homes withdrawn in February 2013 averaged 100 days on the market and were listed for sale with a median price of $137.41 per square foot ($350,000). This compares to an average of 126 days on the market with a median price of $125.46 per square foot ($253,439) for homes withdrawn from the market during February 2012.

Leasing

As of 3/14/13 there are 668 homes (all types) for lease within the City of Austin with a median lease price of $1.07 per square foot per month ($1,595 per month) and averaging 33 days on the market. This compares to 3/11/12 when there were 615 homes (all types) for lease within the City of Austin with a median lease price of $1.00 per square foot per month ($1,695 per month) and averaging 34 days on the market. During February 2013 there were 611 homes (all types) leased in Austin compared to 669 leased in February 2012, which is an 8.53% decrease. In February 2013 the median leased price per square foot was $0.97 per square foot per month ($1,375/mo) and averaging 24 days on the market compared to $0.90 per square foot per month ($1,295/mo) and averaging 27 days on the market in February 2012, which shows a 7.78% increase in the lease price per square foot and a 11.11% decrease in days on the market.

Mortgages For Homes in Austin Texas

Like all other areas of the country, mortgages are the most common way to purchase a home. The recent economic crisis has caused lending institutions to tighten their lending restrictions, but there are still mortgages available for most buyers. (Check out our FREE online mortgage pre-qualification.) The good news is that mortgage rates continue to be extremely low making the purchase of a new home more reasonable than ever before. Mortgages are available in 10 year, 15 year, 20 year and 30 year terms with interest rates from the low 3% range. The costs associated with obtaining a mortgage have remained constant over the last decade. It is important to shop around for the best deal, not only in the interest rate, but also in terms of the closing costs associated with the loan. These will include compensation to the mortgage company or brokerage, home inspection, and appraisal as well as credit reports, and other requirements from the lender. The approval will be dependent on your credit history, your income, and other debts that you have outstanding. Many lending institutions will pre-qualify you for a particular price range to make shopping for Austin homes much easier.

Owner Financed Homes In Austin

The other option for financing your home in Austin is to locate and negotiate with a seller that is willing to finance the home for you. Since the credit market has tightened through traditional lending institutions, this may be the best option for individuals that cannot secure a mortgage for whatever reason. If job history or credit history are a challenge for a traditional lending institution and stand in the way of an approval, your best bet to finance a new home of your dreams in Austin is to go with an owner financed home. (What is Owner Financing? – VIDEO) Some owners are willing to do this because of negative equity or they don’t need to cash out and offer seller financing as an investment. In most areas of Austin, it is definitely a seller’s market. In the deal, the owner of the home and the buyer will come to favorable terms that typically require the homeowner to place a down payment on the property, and make monthly payments to the owner of the home. The only difference really between this situation and a mortgage, is that the lender is the seller and not a lending institution.

March 2nd: Explore UT – Hundreds of events and programs for whatever your heart desires at “the biggest open house in Texas.” Free and open to the public.

March 2nd: It’s My Park! Day – Volunteer with more than 2,000 others on various park projects around Austin.

March 2nd: Sunshine Community Gardens Plant Sale – Browse through hundreds of types organic tomatoes, peppers and eggplants with complimentary seminars and live music.

March 2nd & 3rd: Texas Independence Day Celebration – Celebrate Texas Independence Day with a parade, a 5K, a golf tournament, live music, and more.

March 3rd: Zilker Kite Festival – Bring your own or purchase a kite to fly at Zilker Park. You can see thousands of kites of all sizes and colors!

March 7th: First Thursday – Every First Thursday of the Month on South Congress there is plenty to see, buy and eat for all ages. Many stores have special sales and snacks for their customers, and it’s a great event for families!

March 7th: West End First Thursday – Make the first Thursday of every month a night to spend at a gallery in the West End.

March 8th – 17th: South By Southwest (SXSW) – Enjoy what you love in music, film and tech at Austin’s annual downtown festival.

March 8th – 23rd: Rodeo Austin – Giddy up to Southeast Austin for the annual rodeo, which includes bull riding, music, mutton bustin’, carnival rides, tasty food and so much more!

March 13th: Nerd Night – Gather at a 6th Street bar with your fellow nerds for drinks, conversation and fun.

March 13th: Austin Music Awards – The biggest night in music for the live music capital of the world.

March 13th – 17th:Texas Rock Fest – As if you couldn’t get enough music during SXSW, listen to more music at the Texas Rockfest.

March 22nd: East End Fourth Friday – Enjoy a night of jazz and arts in the East End on the fourth Friday of every month.

March 23rd: Mighty Texas Dog Walk – Join thousands of dogs and owners in competing for the world record for most dogs walked, most dogs wearing the same bandana, most dogs eating the same treat, and most dogs doing doga (doggie yoga!)

March 23rd: Earth Hour – More than 50 million people in the world will join together to turn off their lights for one hour in order to lower power usage.

March 23rd: Zooma Texas Half Marathon & 5k – Race through the Texas Hill Country with a finish at the Hyatt Lost Pines Resort.

March 27th – 30th: Texas Relays – Tens of thousands of fans watch the annual track & field events every year.

March 29th & 30th: Austin Urban Music Festival – Music festivals galore ends March with a mix of hip-hop, rap and DJs at this family-friendly festival at Auditorium Shores.

De-Clutter – This is typically the most painful of all of the steps needed to sell your home in Austin quickly and for the best price. In order for potential buyers to be able to view themselves in your home, it needs to be organized. Cluttered rooms in your home can appear to the buyer to be small and dark. Buyers today want large rooms filled with light. If needed, rent a storage unit where you can take boxes of books and other household items to make your home appear larger. Do not forget to declutter your closet; overstuffed closets are not a selling point!

Repaint – If you have boldly colored walls, repaint them with neutrals and earth tones. You do not want buyers to be prejudiced by a red wall or a blue wall and turned off from buying your home. Allow a buyer to use their imagination and visualize the colors they would put on the walls. This is much easier if you do not have faux painting, wall paper borders, or boldly colored walls. If you have high traffic areas of your home that show wear and tear, before painting patch any dings with putty. A fresh coat of paint is a cheap and effective way to increase interest in your home.

Keep Floors Clean – Let’s face it, the carpets in our homes all need to be cleaned. Drips and spills can turn off buyers immediately. If you are one of the lucky ones that have hardwood floors lying underneath your carpeting, it would be wise to remove the carpet and let your hardwood floors be visible. The fact is that today more and more homeowners are searching for homes with hardwood floors. If you have them, expose them. If you have tile floors in your home, it is essential that you clean the grout. When buyers walk through a home and see dirty grout, they become hesitant to purchase because grout can be a challenge to keep clean. Clean floors throughout your home are essential to get the best price when selling your home in Austin.

Make the Most of Your Outdoor Space – Austin has beautiful weather and people that are looking for a home to buy in Austin are looking for properties with great outdoor spaces. Put as much consideration and planning into the outdoors of your home, as you do the interior.

According to the report, 1,402 single-family homes were sold in the Austin area in January 2013, which is 33 percent more than January 2012, and the total dollar volume of single-family properties sold was $368,289,978, or 55 percent higher than the same month last year.

Cathy Coneway, 2013 Chairman of the Austin Board of REALTORS­®, explained, “The Austin real estate market showed steady growth in demand throughout 2012 and if the first month of 2013 is any indication, this year looks to be continuing that momentum in a big way.”

In January 2013, the median price for Austin-area homes also increased to $197,900, which is 10 percent more than the same month in 2012. Additionally, the market featured 2.5 months of inventory in January 2013, which is 1.6 months less than January 2012 and the lowest inventory figure seen in the Austin area in the last decade.

The market also featured one percent fewer new listings, 25 percent fewer active listings and 25 percent more pending sales in January 2013 compared to the prior year. On average, homes spent 71 days on the market, which is a decrease of 14 days from one year prior.

Chairman Coneway continued, “The inventory of homes in Austin continues to feature unprecedented lows and sales prices are starting to reflect that. Those entering the market should be prepared to compete for properties.”

January 2013 Statistics

• 1,402 – Single-family homes sold, 33 percent more than January 2012.
• $197,900 – Median price for single-family homes, 10 percent more than January 2012.
• 71 – Average number of days single-family homes spent on the market, 14 days fewer than January 2012.
• 2,252 – New single-family home listings on the market, one percent fewer than January 2012.
• 4,947 – Active single-family home listings on the market, 25 percent fewer than January 2012.
• 2,045 – Pending sales for single-family homes, 25 percent more than January 2012.
• 2.5 – Months of inventory* of single-family homes, 1.6 months less than January 2012.
• $368,289,978 – Total dollar volume of single-family properties sold, 55 percent more than January 2012.

The following sections describe trends in other sectors of the Austin real estate market.

Townhouses & Condominiums

The volume of townhouses and condominiums (condos) purchased in the Austin area in January 2013 was 177, which is 39 percent more than January 2012. In the same time period, the median price for condos was $190,000, which is 23 percent more than the same month of the prior year. When compared to January 2012, these properties spent 42 percent less time on the market, or an average of 64 days.

Leasing

In January 2013, a total of 1,150 properties were leased in the Austin area, which is two percent more than January 2012. The median price for homes for lease in Austin was $1,300, which is four percent more than the same month of the prior year.

* The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

What Home Inspections Examine In Austin

A licensed home inspector is hired by the buyers and is an impartial and unbiased member of your home buying team. They examine the home, both interior and exterior to evaluate the safety and condition of the home. This includes a thorough evaluation of structural elements including the foundation, walls, ceilings and floors. The roof and the attic are inspected for the stability of the framing, proper ventilation, gutters, flashing and the condition of the roof. Plumbing is a bit more difficult to inspect as to examine every pipe and connection would be impossible. Inspectors check the drainage and vents in toilets, showers, faucets and sinks. Outside plumbing will also be inspected. Electrical inspections focus on the circuit breakers, the type of wiring found in the home, the main panel, receptacles, exhausts fans, light fixtures and more. In some cases where appliances are being left behind, the inspector will perform inspections on the garbage disposal, dishwasher, refrigerator, range, smoke detectors and carbon monoxide detectors.

What Happens After The Inspection?

Common practice in the Austin real estate market is for the inspector to write up his inspection report and to give it to the buyer’s real estate agent. The agent will share the report with their client and they will go over any concerns that the inspector has indicated. If there are items on the list that are in need of repair, the buyer’s agent can request that the seller of the property fix the problem prior to the sale of the property. In most cases, sales contracts in Austin for a new or older home, contain a clause that allows buyers to back out of a deal if the home inspection is unsatisfactory called an “Option Period”.

A home inspection will bring to your attention any safety considerations you need to weigh prior to purchase. In addition, they can alert you of any large repairs that may be looming on the horizon such as the need for a new roof, new air conditioning unit, and other expensive repairs that are invisible to the naked eye. It is essential that you know everything there is to know about the home you intend to purchase in Austin to make sure that you and your family will be safe and you enjoy the property for years to come.

The Austin real estate market can be tricky to navigate when you first arrive. That is why you need to use a REALTOR® in Austin to help you find your dream home. Our beautiful city has many neighborhoods to explore and consider; a REALTOR® can help you pinpoint the things that are most important to you when selecting your new Austin home. Downtown Austin is the hub for entertainment and employment. There are condos and apartments to be had here, and the market can be competitive to buyers and renters. Just outside downtown, there are great older neighborhoods with large yards and beautiful homes, these neighborhoods are some of the most expensive in the Austin area because of their beauty, great schools and proximity to downtown.

West Austin is a consideration for singles and families that are looking for something that is still within 10 minutes of downtown, but want a more suburban feel. Newer developments built around Lake Travis are great for families and those with a passion for golf. There is plenty of green space here and it is a welcoming community for retirees and young families. Southwest Austin includes some of our area’s older subdivisions; this is an area that is part of our hill country. The landscape is welcoming with its rolling hills and towering oak trees. Larger acreage sites are available here more reasonably priced than other parts of town.

South Austin is eclectic and filled with funky stores, restaurants and bars. It is where a lot of our creative residents, artists, writers, and musicians reside. South Austin has apartments, condos and single family homes of all sizes and you can find exactly what you are looking for in an Austin home, if this is the community vibe you desire. East Austin has recently undergone a rejuvenation of sorts. What was once at the lower end of the economic scale has seen a revitalization in the last decade. Some bargains can still be found in this neighborhood and has it continues its evolution, people will continue to flock here.

If you are looking for your dream home in Austin Texas, it is wise to work with a REALTOR® that has years of experience in the community. If you are looking for urban and chic, Austin has it. If you are looking for suburban communities with golf and other amenities, Austin has it. Speak to Forte Properties about the things that matter most to you, and they will help you get settled into the right community.

According to the report, 1,828 single-family homes were sold in the Austin area in December 2012, which is 17 percent more than December 2011, and the total dollar volume of single-family properties sold was $513,028,200, or 35 percent higher than the same month last year.

Cathy Coneway, 2013 Chairman of the Austin Board of REALTORS®, explained, “This is the strongest year for the Austin housing market we’ve seen since the recession. Each month brought double-digit increases in home sales volume and double-digit decreases in active listings.”

In December 2012, the median price for Austin-area homes also increased to $210,000, which is 11 percent more than the same month in 2011. Additionally, the market featured 2.7 months of inventory in December 2012, which is 1.4 months less than December 2011 and the lowest inventory figure seen in Austin in the last decade.

The market also featured one percent fewer new listings, 22 percent fewer active listings and 24 percent more pending sales in December 2012 compared to the prior year. On average, homes spent 71 days on the market, which is a decrease of 18 days from one year prior.

Chairman Coneway continued, “With accelerating prices, stronger sales volume and more pending sales this month compared to December 2011, we’re encouraged that this steady momentum will continue into January 2013.”

The report also included figures for all of 2012, during which 22,946 Austin-area single-family homes were sold, which is 19 percent more than 2011. Over the course of the year, the median price of homes in the Austin area increased six percent to $205,000 and homes spent an average of 69 days on the market, 15 days fewer than 2011. At the same time, the 2012 Austin real estate market featured three percent more new listings, 20 percent fewer active listings and 19 percent more pending sales than 2011.

Chairman Coneway concluded, “We are pleased to see another year end on a positive note for Austin’s real estate market. We’re confident that with the surge in sales volume over the second half of 2012 and the strong demand evident in December, the 2013 housing market will be as healthy as last year’s.”

December 2012 Austin Real Estate Market Statistics

• 1,828 – Single-family homes sold, 17 percent more than December 2011.
• $210,000 – Median price for single-family homes, 11 percent more than December 2011.
• 71 – Average number of days single-family homes spent on the market, 18 days fewer than December 2011.
• 1,367 – New single-family home listings on the market, one percent fewer than December 2011.
• 5,129 – Active single-family home listings on the market, 22 percent fewer than December 2011.
• 1,519 – Pending sales for single-family homes, 24 percent more than December 2011.
• 2.7 – Months of inventory* of single-family homes, 1.4 months less than December 2011.
• $513,028,200 – Total dollar volume of single-family properties sold, 35 percent more than December 2011.

2012 Year-End Totals

• 22,946 – Single-family homes sold, 19 percent more than 2011.
• $205,000 – Median price for single-family homes, six percent more than 2011.
• 69 – Average number of days that single-family homes spent on the market, 15 days fewer than 2011.
• 31,441 – New single-family home listings on the market, three percent more than 2011.
• 6,853 – Active single-family home listings on the market, 20 percent fewer than 2011.
• 24,941 – Pending sales for single-family homes, 19 percent more than 2011.
• $6,204,024,237 – Total dollar volume of single-family properties sold, 26 percent more than 2011.

The following sections describe trends in other sectors of the Austin real estate market.

Townhouses & Condominiums

The volume of townhouses and condominiums (condos) purchased in the Austin area in December 2012 was 181, which is 13 percent more than December 2011. In the same time period, the median price for condos was $209,000, which is 17 percent more than the same month of the prior year. When compared to December 2011, these properties spent 23 percent less time on the market, or an average of 70 days.

Over the course of 2012, 2,520 Austin condos were sold, which is 28 percent more than 2011; the median price was $181,000, or eight percent more than 2011; and condos spent an average of 74 days on the market, 20 days fewer than 2011.

Leasing

In December 2012, a total of 975 properties were leased in Austin, which is five percent fewer than December 2011. The median price for Austin-area leases was $1,300, which is four percent more than the same month of the prior year. In all of 2012, a total of 15,842 properties were leased in Austin, which is one percent fewer than 2011, and the median lease price was $1,320, or six percent more than 2011.

Make sure you understand everything about the property you are considering before signing any paperwork or committing any funds. It is not difficult to be swept up in the beauty of many of the homes in Austin that are for sale – an incredible city be any criteria, this is a special place in our nation and home to some of the most stunningly designed homes you’ll find. But pretty as they may be on the surface, it’s mission critical that you uncover as much information as humanly possible about the property you are looking to buy. This extends far beyond what the seller has prepared for prospective Austin real estate buyers and is probably a bit of legwork you’re going to have to do all on your own or with the help of skilled professionals.

You’ll need to know when the home was built, any and all additions, major concerns and repairs that need to be done. Other things to look for are the energy consumption, taxes and estimated costs to run and maintain the home and property. All of this information is very important and yet most people don’t ask or look for it in the first place.

It is important that you sit on any decision for at least 24 hours before making the final call. This cooling off period helps you get the kind of perspective you need before making one of the biggest financial decisions of your life. When you are looking at a bunch of Austin homes it may be a little tough to pick just one that blows you away – although sometimes you just “know” that a house is meant to be yours. Regardless of how you come to the decision to buy one of the homes in Austin, it’s best to take at least 24 hours before making your final decision. This cooling off period will help make sure you don’t make any rash decisions that you may end up regretting later.

If you’re selling house in Austin right now, you will probably find a market flooded with offers. For this reason and so many more it becomes mission critical to make sure that you have done everything in your power to boost the perceived value of your home or Austin investment properties to be too great to resist from investors or home buyers.

The number one rule of showing a home is managing buyer’s expectations. The first rule of selling a house in Austin and getting a fair return for it is to manage the buyer’s expectations from the outset. No matter what the market is doing, there are always people looking to get into the real estate investing market – some are looking for Austin fixer uppers, some are looking for mid-range homes and others are only interested in luxury real estate to flip to their affluent customers. Luckily, there are homes and Austin investment properties that fall in each of these different areas.

The worst thing you can do however is to make your home look like something it is not. You don’t want to create false expectations for the people who are looking at homes. You’ll only waste time. Instead be true to what you have while spinning it attractively. Massage the reality, but don’t bend the truth.

One of the best methods to boosting the perceived value of your home and helping people “see” themselves in it is to use staging properly. The other key to selling a house in Austin or boosting your returns on Austin investment properties is called home staging. This is basically making the home or building look “lived in”, even when it is not. Too many people will walk into an empty home and miss the possibilities – they cannot imagine the space working for them. But when you stage it with furniture and other elements, you are able to do the heavy lifting for them making your property much more attractive and likely to sell for what you’re asking.