Yesterday I explained how Months of Inventory helps us follow the health of Austin’s real estate market.  Pricing is another factor that gives experts insight into the health of our housing economy.

Generally, a buyer’s market has two major simptoms:  1) High Months of Inventory Figure; 2) Falling Average Home Sales Price.  We are currently seeing a relatively high amount of inventory in Austin that experts estimate will take 6.1 months to sell which puts us in line with the numbers we saw in 2003 & 2004 as I explained in my Tuesday market update.  However, the average price of a home in Austin is remaining strong, meeting or beating 2007‘s figures, and amazingly beating the average home sales price of the 2006 boom.  The Median Sales Price figures are above the levels that we have seen all decade!

I know you’ve had your doubts about what you keep hearing from both me and the experts, so I hope these numbers, from the Texas A&M Real Estate Center, demonstrates the helth of Austin’s real estate market even in this buyer’s market.

What does this all mean?
It means that homes are staying on the market longer, but are bringing higher prices than they did in any year in history.  Unlike other areas in the nation, Austin home prices are not falling.  Austin remains a top buy for investors and transplants from elsewhere in the country.  Our real estate here in Austin is still considered a bargain.