What areas are hot right now? Honestly, I haven’t come across a section in Austin that I would truly call a Buyer’s market right now. Inventory seems to be moving no matter what price point you are looking in, provided you are within Austin. There are other areas surrounding Austin that are feeling the affects of neighborhood foreclosures and short sales, which drive the prices down simply because there is an over saturation of Seller’s wanting to sell, versus Buyers looking to buy.
When I find areas with Average Days on the Market being over 6 months that is where I classify a neighborhood to be a Buyer’s market. Areas that stay on the market for 4 – 6 months are considered ‘neutral’, and less that 4 months are considered a Seller’s Market.
The only exception to this rule is when I am referring to homes priced over $600,000. There are simply less Buyers able to afford a home in that price point, so the inventory tends to sit a little longer.
Whether I am working with a Buyer or Seller to determine market price, I certainly take into account how hot a neighborhood is. I take the last 3 months of inventory and add the sold and pending listings. I then add the active listings up and determine the average amount of months it is going to take to ‘sell’ that inventory. The lower the number – the hotter the neighborhood. How hot is Cat Mountain right now? It has about 6 months of inventory. While Parkwood, in South Austin, has enough inventory to last 2 months.
Understand, the overall condition of a home certainly plays an important role in how fast a house will sell. Looking at inventory flow is just an additional data point I like to refer to.