Resale versus New Construction

Lets take a look at the resale versus new construction market in the most common price point in the Austin real estate market, the $250,000 – $500,000 segment. Many buyers that are looking to purchase fall between these price ranges making for a competitive market.  Most of the inventory available on the market is currently in between $250,000 and $500,000. Currently the average price in the Austin market is $327,140. There are also currently just over 6,000 single family residence on the market with over 50% of them falling within the $250,000 – $500,000 price point.

By taking a look at what is available in this market we found that of the approximately 3,000 homes available, half were just recently built as new construction. A majority of the home buyers tend to look at the resale market, which in the graph below is those homes built prior to 2018. The resale market in this price segment accounts for 70% of the sales, with only 30% being new construction.  The resale market in this price point is very competitive with 1.8 months of inventory on the market.  The new construction market has 3.8 to 3.9 months of inventory currently on the market.

As a home buyer if you are not needing to move within the next 30 to 60 days a great option would be to take a look at the new construction market. The advantage is that generally builders will require a lower down payment and also have great incentives that can actually make the cost of purchasing a home less. The new communities that are popping up in the Austin area also have great amenities from trails, pools, community gardens, and a real sense of community.

 

Resale versus New Construction
$250-000 – $500,000
Date Actives Pendings Solds Inventory
New Resale Total New Resale Total New Resale Total New Resale Total
4/10/2020 1537 1654 3191 1091 1284 2375 1194 2791 3985 3.862 1.778 2.402
4/11/2020 1536 1702 3238 1088 1263 2351 1202 2828 4030 3.834 1.806 2.410
4/12/2020 1555 1699 3254 1093 1268 2361 1205 2835 4040 3.871 1.798 2.416
4/13/2020 1555 1687 3242 1091 1277 2368 1191 2811 4002 3.917 1.800 2.430
4/14/2020 1522 1673 3195 1116 1267 2383 1196 2827 4023 3.818 1.775 2.383

 

Lets take a look at some great new construction options in this price range

 

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If you need any additional information please feel free to contact me

 

Matthew Cornwall

matthew@teamprice.com

(512)221-4652