Austin home sales volume down 8% in '07, but sales prices up.

Great information in this article from the Austin Business Journal. Many believe that the decline in the number of homes sold in '07 was due to the sub-prime mortgage issues. The disappearance of risky mortgage products left a lot of potential buyers on the fence and pushed out many investors who were buying up properties, often without any money down.

The fact that the average sales price continues to rise is proof that our market is healthy. Since a lower number of properties are selling, it's crucial for those selling to be 'in the market' - meaning that the condition and staging has to be excellent, the pricing has to be well researched and competitive with other homes available and currently under contract in the neighborhood and the marketing has to reach the largest possible audience.

Danny Gallant - Realtor
The Gallant Group @ Keller Williams Realty
512-922-1273

#####

Existing home sales dropped 8% in '07

Austin Business Journal
Wednesday, January 23, 2008

Austin area existing home sales fell 8 percent last year as the market continues to struggle with the decline in the U.S. housing sector.

A total of 25,151 existing homes were sold in the market last year, down 8 percent from 2006, according to the latest Multiple Listing Service report from the Austin Board of Realtors.

Sales in December fell 16 percent year-over-year to 1,655, the report shows. Still, the median home price in the market for the year rose to $185,000, up 6 percent from 2006.

"Austin area home sales and prices experienced steady and stable growth over the past few years, contributing to the overall economic health in Central Texas," says ABoR Chairman Socar Chatmon-Thomas. She adds that indicators continue to show that long-term investment in Central Texas property continues to be a good financial strategy.

Single-family property sales contributed $6.3 billion to the local economy in 2007, down just 2 percent from the previous year. Those properties sat on the market for an average of 62 days, the lowest time span in five years. Active listings increased by 10 percent to 8,628.