Median Sales Price

Austin is typically around 6%, so at 13% annual growth, we’re definitely seeing strong price appreciation, and consequently the value of our investments continuing to yield high returns. I also like to look at the Month-over-Month (MoM) number, which is $10k higher than last month!

New/Active Listings

Active listings fell both YoY and MoM, further supporting what we know (and predicted months ago) that we’re in a seller’s market.

ADOM | MOI

You know that I like to look at Average Days on Market (ADOM) and Months of Inventory (MOI) to tell the real picture. MoM ADOM decreased another 2 days, and MOI another 0.1 months, further indicating a hot seller’s market.

A few interesting statistics for investors

• A $10k MoM increase is like getting a $10k equity bonus for each $365k home you own
• Assuming a 20% down payment, that $10k bonus translates to a yield increase of 13.7% Return on Investment (ROI), from a single month!
• Even more impressive, and assuming the same 20% down, that 13% YoY Median Sales Price increase works out to $47,450 in 1-year capital gains… an ROI of 65%, not even factoring in cashflow, principal buy-down, and tax savings!

I said this last month and will continue to harp on it… If you’re a buyer sitting on the sidelines, this market is not going to wait for you. There are still some great deals for investors out there (I just contracted on another property last week!), but they’re getting harder and harder to find. Interest rates are ridiculously low, and buyers are driving up prices. I highly encourage you to reach out to me today and let’s start looking!

Source/credit: Austin Board of REALTORS®

Read more real estate investing articles like this on the Ten Properties blog