Jan Stats First Look + Pricing Difficulty - Bramlett Residential

Jan Stats First Look + Pricing Difficulty

Posted Feb 8, 2021
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February 8 Newsletter


Hello and we hope that you’re doing well! The Austin real estate market continues to amaze and we wanted to share a first look at January statistics. We manually ran high level numbers and bound this to Travis, Hays, & Williamson Counties (our own addressable market.)

Unit volume is up 10.71% Year Over Year. Avg & Median Pricing is up 19.98% to 24.92%, depending on which metric you choose to look at. These are incredible numbers. Many people have pointed out that this is not sustainable, and we absolutely agree with that sentiment. It is not sustainable for markets to appreciate in the ~20% range long term. That said, it certainly looks like Austin’s pricing is adjusting from a long time undervalued market when compared to other markets.

Unique Pricing Challenges
Internally, this dramatic appreciation has made pricing properties for both sellers & buyers very challenging. In the past, we’ve always looked at sold comparables from the past 6-12 months in order to value properties. Because the market has appreciated so dramatically, sold comps that are more than 1-1.5 months old are not relevant (which is just an amazing phenomenon!)

Seller Pricing Strategy
When pricing for sellers, we first look at sold comparables since late December 2020. We also look to pending properties in the subject properties sub-market. Since sales price is not reported until the property closes, we reach out to the listing agent for these pending comps in order to get this information. Ideally, we’re able to find 1-3 good, very recent comps and we price using this information. If we are not able to find good data points, we then look backwards 6 months and then apply a 20-25% appreciation premium. Because the market is so tight/competitive, we are using a highly defined listing strategy that ensures that the market will bring a higher price if there is buyer appetite for it.

Buyer Offer Pricing Strategy
When pricing for buyers, we take the same approach and first look back 45 days and contact listing agents for pending property prices. We then look back 6 months to see if the listing agent used “old comps” when pricing the subject property. If that is the case, then we know that it was underpriced and that we can expect offers to be at least 20% over the list price. The difficulty when pricing for buyers is predicting if current buyer demand will drive the price up over the recent 2021 “good comps”. This requires close & efficient communication with the listing agent, which we then set to work establishing. By taking a much deeper look at comps & by communicating much more with listing agents than has been necessary in the past, we are able to successfully help our buyers put properties under contract at the current 2021 values.

Internally, we’ve begun referring to our current market as “The Post-COVID Boom”. This market has been astonishing and is presenting real and unique challenges that no one in the Austin market has seen in their careers. We will continue to update you with the most recent stats & strategies. If there is anything that we can help you with your specific property or situation, please don’t hesitate to reach out.

Thanks!

Categories Post COVID Boom

1200+ Client reviews!

Jaish S.

It was such a pleasure to work with Shaun Duffenbach at Bramlett Residential Real Estate! Shaun helped me to buy an investment property in Austin, Texas. Shaun explained everything in a way that was easy to understand from making the offer, to working with the mortgage banker. This made it really easy to buy a house within a month and that too during such tough weather in Austin, Texas in the last few weeks. Shaun never left any questions unanswered and always responded promptly. He is a very professional, experienced, and helpful realtor with excellent knowledge of the local market. I would highly recommend him as well as take his help for any future investment.

Christine P.

Tara McGuire at Bramlett is great! She is incredibly knowledgeable, responsive and got us well over our asking. We would highly recommend her!

Lewis cox

Bailey did a fantastic job. She was very good about keeping us in the loop about everything going on. She knows her job well I wouldn’t change a thing. Thank you and your company for making this easy for us.

Jaish Kumar

I felt overall the transaction was very smooth and fast. I think communication was the key and he did pretty well. His excellent idea about the local market and communicating the same was very good throughout the process.I didn’t find anything missing as all went smooth. Hoping to get Shaun’s to help again in the future as well.

Jacob Noga

We recently purchased a home and used Bramlett. Katie was fabulous! She was hard working, very friendly, and communicative! We were moving from out of state, so Katie would go see listings that we were interested in and take videos. They were extremely helpful for us to help make a decision. She always kept us updated! We couldn’t have asked for a better experience! Thanks so much Katie and Bramlett

Steve P.

We worked with Lauren Yoder to purchase our new home in the Austin area. We could not have been happier with the work that Lauren did for us. Lauren was referred by a friend of ours and we are glad we gave her a call! She listened and understood our goals to ensure the homes we viewed fit our parameters and finances. Much of our home buying process was done virtually and Lauren did everything possible to make it easy for us and worked out better than we could have wanted. Lauren works extremely hard for her clients, she is thorough, responsive, and knows her stuff. Give her a call for your real estate needs, you’ll be glad you did!

Katie H.

Lauren came recommended by two completely separate friends to me and my fiancé when searching for our first home and we are so thankful that we got set up with her! Lauren was phenomenal to work with. She did all of the things you would hope for from a realtor in terms of timeliness and organization; AND she went ABOVE AND BEYOND for everything else! When we walked through houses Lauren was able to use her expertise to guide us to a house that would be within our budget, a smart investment, and a house that does not cause us an insurmountable amount of work.
Lauren was able to guide us through the incredibly competitive offer process to get a house.  She was able to get us moving quickly to see the house and put in an offer quickly. Even more importantly she was able to make sure we offered a competitive offer not only with knowing the market and prices but also by changing up our contract creatively to get the seller’s attention.
After the offer process Lauren was even more helpful by making sure we were coordinated with all of the folks we were working with and that we knew all of the tasks that we needed to get done.
And even when Lauren was temporarily unable to meet us at houses she made sure to set us up with Katie who was able to help us through the processes! It feels challenging to even sum up everything that Lauren did throughout the house buying process – we are so grateful to have worked with her and recommend Lauren to anyone and everyone who is interested in buying a house!

Steven Primm

Overall the transaction went great, but Lauren was the main reason it went well especially since we were out of state.  There were many follow ups and walk throughs for a new build and she was instrumental in helping with those. Lauren did everything well, but especially just owning the whole process and being persistent with the builder.  She had great insight to anything we asked and brought up things that we hadn’t considered and she clearly had our best interests in mind.  We’ve used many agents in the past and Lauren is above and beyond the best we’ve used.  She was a referral from a friend of a friend and I’m glad it worked out!

Jill Jeranko Primm

Lauren was over and beyond our expectations and was by far the best real estate agent we have had. Her detail to everything was amazing, especially since we were out of state. She is smart and knowledgeable and would highly recommend her to anyone.

Matt McDonnell

Lauren was superlative as always.  There’s a reason I’ve worked with her on a dozen transactions or so and will continue to do so.

Melissa Brierley

The transaction was easy as could be. Lauren is amazing and makes transactions so easy. She goes above and beyond to make sure everything runs smoothly and even helps to coordinate inspections, repairs ect. We have now bought two homes and sold one with Lauren and all three transactions have been a breeze. Not to mention that both purchases were highly competitive and she was great at strategizing and we got them both. Since working with Lauren we have also bought and sold homes in other states and both times we had to do so much more and it was a much bigger hassle. We often talk about how we need a Lauren in the other states we own in. We actually had a conversation recently about how we may as well keep investing in Austin because Lauren makes it so easy.

Zdenek Suda

We were in Austin in December 2020 for home leave from my assignment overseas, and had been planning to buy our retirement home in the summer of 2021 and just look around in the week before Christmas. I reached out to Bramlett – having had a very good experience working with them in the summer of 2016 (Tara McGuire was out agent then) to buy our first house (also in Austin). Our agent, Craig McGuire, did thorough research that he shared with us, and advised us – without pressuring us – to consider buying then, given that what we wanted would be well beyond our price point by the summer because of the conditions in the Austin market for the foreseeable future. Observing all the correct COVID-19 protocols, he showed us houses that fit what we were looking for, and once we saw one that we really wanted, gave us the advice needed to help us to win a bidding contest without breaking the bank. This was really important, as after putting in our bid we had to leave Austin and do everything at a distance. Craig was key to making that possible. He found us a good mortgage company that qualified us quickly and, thanks to all his efforts and consistent support, we were able to close in a little over a month – in the time of COVID, doing everything very long-distance, and in a crazy Austin housing market. We’re very happy with our home purchase, and with Craig!