Steiner Ranch Housing Report - June 2014

In this edition of How’s the Market in Steiner Ranch, I review the May stats and focus on the high inventory of homes between $500,000 and $700,000. Below the video, you can find the same information in chart and text formats.

To view summary and detailed sales information for all Steiner Ranch neighborhoods, check out the Neighborhood Home Sale Data section of my website. If you are looking to buy or sell a home in Steiner Ranch, contact me at 512-650-7300, by email, or use the form below. Click here for previous editions of How’s the Market in Steiner Ranch.

If you prefer to read instead of watch, here are the chart and transcript:

Transcript

Greetings! I’m Craig Smyser. Welcome to the June 2014 edition of “How’s the Market in Steiner Ranch.” In May, 43 homes closed in Steiner Ranch which was up 10.3% from May 2013. Many new construction sales are not listed in the MLS, so I can’t provide accurate data on the new sales. When looking at resale homes only, there were 41 sales which was up 28.1% from last May. From this point forward, all the stats quoted are for resale homes only. The average price of a resale home increased almost 6.2% to $476,191. The median price increased by 3.1% to $420,000. The average price per square foot increased by 17.6% to $155.01.

The numbers look much stronger when we smooth it out by looking at the last six months and comparing it to the same six-month period from the prior year. The average price increased 19.1% to $503,140, the median price increased 12.2% to $436,000, and the average price per square foot increased 15.4% to $150.30. So why such a disparity between the one-month and six-month numbers? While it could simply be the small data set providing a sample that is not representative, I think it may be the spike in inventory that we have seen over the past two months. The number of available resale homes in May was 83. Overall, we have a four month supply of homes in Steiner Ranch, which is technically a seller’s market, though not a red hot seller’s market. Under $500,000 there is a three month supply of homes. But between $500,000 and $700,000, there is a 7 month supply of homes, which is a buyer’s market. Over $700,000, there is just over a 4 month supply. I believe the unexpected increase in inventory in the $500,000 to $700,000 range is affecting the overall market because they aren’t getting many contracts, the contracts are not coming as quickly as before, and sellers are lowering prices. Because these properties haven’t sold yet, their sales prices don’t yet fully reflect what is happening in the statistics. In my opinion, the rate of increase in this price range will slow or even start to drop a bit. I suspect there are two reasons for so many homes hitting the market at once. First, many sellers tried to time the sale for just after school got out. Second, with prices having appreciated so much over the past year, some sellers are testing the market to see if they can get what they want to sell their home. If they can get that price, great if not, they are happy to stay in their current home. Coming back to the overall pricing in Steiner Ranch, I believe this inventory bulge is the reason the May number showed a small gain compared to the six-month numbers. I will continue to monitor the market and we’ll see next month if things change. Across Steiner, the May sales ranged from a low of $300,000 to a high of $850,000. This marks the fourth month in a row in which the lowest sales price was at or above $300,000.

The average sales price to list price ratio was 98.6%. For homes that closed in May, the average days on market was 28. My website allows you to look at summary and detailed data for each Steiner Ranch neighborhood.

As always, if you have any real estate related questions, please don’t hesitate to contact me at 512-650-7300, by email, or use the form below. Thanks for reading “How’s The Market In Steiner Ranch.”

Statistics based upon information from ACTRIS for the periods cited.