Has your market peaked?

[Jon Klaus]

How do you see your market?  Have sales or prices peaked?  What are the unique characteristics affecting your market?  Where do you see it in 1-2 years?

In Austin, sales are still high, but down a little from last year.  Prices are still rising, days on market low, but holding steady at 42 on average.  It's still a very healthy market, but not growing quite as fast as the past couple of years. 

I see continued growth over the next couple of years, driven by quality job and population growth.  There are speculative pockets that could move back some, but great locations have plenty of fuel to continue upward.  

[Account Closed]

At the top of the market in 1989, the housing affordability index (HAI) hit 13% for our Santa Clara County.

At the bottom in 1994, the HAI reached 45%. 

At the top in 2007, the HAI hit 11%. 

At the bottom in 2011, the HAI reached 56%. 

We are currently at 19%.  Definitely we are closer to the top than the bottom.  So tread lightly.  We are potentially on thin ice.

Median Price for our area is up 15.2% YoY - $870,000

Average Price is up 23.6% YoY - $1,154,000

Sales down 30% YoY

Inventory is down 36% YoY

Average Days on Market is 26

Inventory is about 1.5 months

Good, Bad, or Ugly???