Eleven Oaks Realty is proud to present their August 2020 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 17%
The biggest story this month: median home prices in Austin up again. We’ve seen the consistent increase in Austin home prices that hasn’t slowed even during the pandemic. And, it seems pent up demand has unleashed and people are willing to pay significantly more than they were at this time last year. The median price of an Austin home in August 2019 was $416,000 compared to $485,000 in August 2020, up 17% ($69,000) in year over year numbers. It seems we are experiencing our spring bump at the end of summer this year.
Median home price helps us see the distribution of homes sold and does not really give us an indication of the increase or decrease in a particular home’s market value. To analyze market value, we’d have to take an in depth look at a neighborhood. If you’re looking for something like that, please check out our Austin Home Values Report.
What does this mean to buyers? The Austin market has not skipped a beat, despite the coronavirus shutdown. As experts predicted at the start of the pandemic, the Austin real estate market would not be as affected as other markets. And, as we see price increases and inventory below 1 month, it didn’t take long for those predictions to come true. Interest rates are at lowest levels we have seen in the history of the market and buyers are taking advantage. Because interest rates are the single biggest driver of mortgage payments, the price increases really aren’t having an effect on affordability with interest rates where they are. If you’re looking to buy, you might be in one of the most favorable seller’s markets for buyers we’ll ever see. If you’re thinking of buying, get pre-approved now, so when the right one comes available, you’ll be ready to act. Waiting until we get through this pandemic might mean you end up paying more – both in terms of higher interest rates and mortgage payments and higher home prices.
What does this mean to sellers? With inventory at 1 month, we are in an extreme seller’s market. Buyers who pressed pause on their home searches are back at it. Plus, we have added a pool of home buyers who decided to move once they realized they’ll be having to stay in their houses for the foreseeable future. Supply is down 33%, while demand is up 3%. We are seeing lines, multiple offers and overbids – even in the outskirts of Austin. It used to be we only saw these conditions in Central Austin or in Austin neighborhoods with very highly rated schools. Now we are even seeing them as far out as Georgetown and Buda. With inventory so low, buyers are definitely feeling the pinch. Time to sell is also down to 26 days, down 11 days from last year, proving that serious buyers ready to act are still in the market. And, with median pice is up 17%, you’ll likely get more than you would have last year. If you’re looking to sell, get your home ready now. Though we are predicting the Austin housing market will fair well in the economic downturn, you still never know. If you’re looking to minimize uncertainty, get your home sold now before we see more changes.
30% Decrease in Time to Sell Home in Austin
In August 2020, it took only 26 days to sell a home in Austin, on average, compared to 37 days in August 2019, marking a 30% (11 day) decrease in year over year numbers. Not only are buyers willing to pay more than they were last year, they are also making decisions faster, which again, speaks to the strength of the Austin housing market.
Number of Homes Taken Off the Market Saw a 23% Increase
In August 2020, there were 299 homes taken off the market compared to 244 in August 2019. This marked a 23% (55 home) increase in year over year numbers. This month we are back to the increase in homes taken off the market, compared to last month when we saw a decrease in year over year numbers. Though the Austin real estate market is a very strong market, buyers aren’t overpaying for homes they don’t see as a value. It seems that instead of adjusting the price, these sellers are opting to pause their home sale.
If you need to sell and your home was priced right, maybe there was something else going on. The biggest culprits we see are incorrect info in the MLS and poor marketing. Check out our Austin Home Marketing Plan to see how your homes would be marketed.
Having trouble selling your home? Check out our Austin Home Not Selling resources page to find out why.
Number of Sold Homes in Austin Saw a 3% Increase
Austin saw a 3% increase in the number of homes sold comparing August 2019 to August 2020. In August 2020, we saw 1,217 homes sell in Austin compared to 1,177 in August 2019 marking a 3% (40 home) increase in year over year numbers. This year we saw our spring bump later in the summer as the market took a pause during the coronavirus shutdown.
67% Decrease in Austin Housing Inventory
In August 2020, we saw 0.9 months of inventory on the market, compared to 2.6 months of inventory in August 2019, showing a 67% (1.7 months) decrease in year over year numbers. With inventory levels at 1 month, we are in extreme seller’s market territory. As we predicted last month, if we didn’t see an increase in inventory, we would see a significant increase in price. And, with a 17% increase in median price, it seems the price increase has already started.
Austin Homes Under Contract Saw a 22% Increase
In August 2020, 1,299 homes went pending (under contract) in Austin compared to 1,067 in August 2019, marking a 22% (232 home) increase in year over year numbers. Buyers have resumed their house hunting and are hitting the market in full force.
33% Decrease in Number of Homes on the Market
In August 2020, we had 2,717 homes for sale in Austin, compared to 4,055 in August 2019, showing a 33% (1,338 home) decrease in year over year numbers. With the decrease in homes on the market and the increase in buyer activity, it’s no wonder we are seeing extreme inventory shortages.
No Change in Number of Homes Listed for Sale
In August 2020, we saw 1,196 homes introduced to the market compared to 1,193 in August 2019, marking a 3 home change in year over year numbers. Though we are seeing about the same number of homes being listed, the increase in demand and in homes taken off the market has still caused an inventory shortage.
Supply Down 33% and Demand Up 3%
This month we saw a 33% decrease in supply (number of properties for sale) and a 3% increase in demand (number of sold properties). With a significant decrease in supply and increase in demand, it’s understandable why we are inventory shortages, multiple offers and overbids. Savvy sellers who are looking at the data and seeing the strength of the market are capitalizing.
Median for Sale Up 22% vs Median Sold Price Up 17%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 22% increase in the median for sale price and a 17% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
August 2020 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for August 2020 Austin home sales below. The most expensive home that sold in August 2020 sold for $6,608,000 and the least expensive home sold for $130,000. Homes ranged in size from 489 sqft – 15,842 sqft with an average size of 2,413 sqft. The average price per square foot for a home that sold in Austin in August 2020 was $276.05 with the lowest being $48.40/sqft and the highest being $1,820.92/sqft. It took, on average, 26 days to sell a home in Austin and sellers received, on average, 99% of their original list prices.
| Beds | Baths | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM |
|---|---|---|---|---|---|---|---|---|---|---|
| Min | 1 | 1 | 489 | $154,900 | $57.67 | $130,000 | $48.40 | 54% | 54% | 0 |
| Max | 8 | 11 | 15,482 | $7,500,000 | $1,859.26 | $6,608,000 | $1,820.92 | 132% | 132% | 477 |
| Avg | 4 | 3 | 2,413 | $676,482 | $277.17 | $667,217 | $276.05 | 100.02% | 99% | 26 |
| Median | 3 | 3 | 2,148 | $480,000 | $231.98 | $483,000 | $233.75 | 100% | 100% | 6 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | Aug-20 |
| Property Type | Single Family Homes | Number Sold | 1,223 |
| Source: | ABoR Sales Data | Area | Austin |
Time to Buy? Sell?
As we always say, the best time to buy or sell a home is when you need to buy or sell. If you have a house to buy, buying when its a sellers market may hurt you on the buying end, but you’ll make it up on the selling end. If you’re trying to get into the market for the first time, the only way you’ll know that we’ve “hit bottom” is when its in the rear view mirror. Work with professionals who can help you analyze your financial and lifestyle to determine if now is the right time to buy or sell.
Looking strictly at the numbers, it appears the recommendation for this month is – it’s time to sell. Inventory is at 1 month, which indicates an extreme sellers market. Demand is up 3% while supply is down 33%, so buyers are definitely feeling the shortage. Homes taken off the market are up 23%, which is contributing to the inventory shortage. New listings saw no change, so we aren’t getting any relief with replenishing inventory. With inventory levels so low and demand increasing, we have seen prices go up significantly. If we don’t see more supply, I would expect us to see an even greater increase in prices. Motivated buyers are in the market, snatching up inventory, on average, in 26 days. Sellers who are looking to sell should get their homes on the market soon. Anxious buyers who have been waiting out the crisis are itching to find something. Plus, new buyers who are taking advantage of historically low interest rates to make a change in their current housing situation.
If you’re a seller who needs to sell now, work with a professional Realtor who can help you position your home as the best value on the market. Check out our 88 Ways to Sell Your Home Faster and For More Money for some tips on how you can prepare your home to meet the market. For more info about our Home Selling Program and why it is the best in Austin, check out Sell My Austin Home.
If you’re looking to buy, keep in mind we are still in a much more favorable position than we have been in years past. Interest rates at the lowest points in history is increasing affordability more than the increase in prices. Though we are seeing multiple offers, overbids and lines to get into properties, payments are still at historic lows. The end of summer is resembling the peak of spring, so you’ll have to be proactive with your search. Buyers who act quickly will have a jump on others who are taking their time. Buyers who think we are approaching a slowdown due to the coronavirus will become complacent. If you set alerts, check out new listings as soon as they’re listed and are prepared to make offers, you’ll beat other buyers to the best homes. And, if you’re ready to act, you can make an offer before the competition has time to see it. The best homes are still selling quickly, especially since there are fewer overall choices. You’ll want to give yourself ample time to make a decision. Get your search set up and start looking at new listings now. If you’re looking to buy, we can help you be successful. We know the market and know how to get the best deal for a buyer. For more info about buying a home, visit Buy a Home in Austin.
Questions About the Austin Real Estate Price Report?
Do you have questions about this Austin Real Estate Price Report? Call us at (512) 827-8323 or email us at info@11OaksRealty.com and we’ll help you in any way we can. If you’re looking to buy or sell Austin real estate, don’t forget to check out our Buyer Resources and our Seller Resources for more tips.
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