Eleven Oaks Realty is proud to present their February 2020 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 13%
The biggest story this month: median home prices in Austin up again. The median price of an Austin home in February 2019 was $374,545 compared to $423,000 in February 2020, up 13% ($48,455) in year over year numbers. As we head into spring, buyers are willing to shell out more this year than they were last year. Could be the reduction in inventory, or historically low interest rates that allows them to buy more house for less per month. It will be interesting to see what next month’s numbers bring considering the coronavirus outbreak.
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? Month after month, prices keep going up. It’s been years since we’ve had a reduction in median price in year over year numbers. Some say this coronavirus will finally be what causes prices to decrease, however, I only see that happening in certain segments of the market. Austin is an insulated bubble with high paying jobs in industries that haven’t been as affected by the outbreak as other areas are. So, if you’re waiting for the market to slow, you might not get your wish. And, with interest rates dropping even more, this might be the most affordable housing market you’ll find in the next several months. If you’re in the market to buy, you might want to consider doing so sooner rather than later. Interest rates are at all time lows, which will have a greater impact on your monthly mortgage than prices.
What does this mean to sellers? With supply down 20% and demand up 2%, sellers who position their home well will have no trouble getting a buyer. Time to sell is also down to 38 days, which is creeping more towards an extreme sellers market. Plus, median pice is up 13%, which is a pretty significant bump from last year. If you’re looking to sell, get your home ready now. As we head into spring, supply should go up, which means buyers will have more choices. Show them what you have to offer now and you might just catch someone who is ready to pay top dollar before spring heats us.
16% Decrease in Time to Sell Home in Austin
In February 2020, it took 45 days to sell a home in Austin, on average, compared to 38 days in February 2019, marking a 16% (8 day) decrease in year over year numbers. As inventory levels decrease, buyers are snatching up the homes that are on the market faster than they were last year. If we don’t see an increase in inventory and a reduction in demand, I would suspect time to sell will only continue to go down.
Number of Homes Taken Off the Market Saw a 5% Decrease
In February 2020, there were 123 homes taken off the market compared to 130 in February 2019. This marked a 5% (7 home) decrease in year over year numbers.
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 2% Increase
Austin saw a 2% increase in the number of homes sold from February 2019 to February 2020. In February 2020, we saw 795 homes sell in Austin compared to 778 in February 2019 marking a 2% (17 home) increase in year over year numbers.
36% Decrease in Austin Housing Inventory
In February 2020, we saw 1.3 months of inventory on the market, compared to 2.0 months of inventory in February 2019, showing a 36% decrease in year over year numbers. This month even saw a bigger dip than we saw last month, which means spring is off to a hot start for buyers. Sellers haven’t exactly jumped on board yet, but buyers are eager to get in homes before the peak spring seasons starts.
Austin Homes Under Contract Up 5%
In February 2020, 984 homes went pending (under contract) in Austin compared to 941 in February 2019, marking a 5% (43 home) increase in year over year numbers. This only reaffirms the other numbers in that buyers are ready to buy.
20% Decrease in Number of Homes on the Market
In February 2020, we had 2,383 homes for sale in Austin, compared to 2,963 in February 2019, showing a 20% (580 home) decrease in year over year numbers. Again this month we are seeing fewer homes for sale in Austin and no slow down in demand, so inventory levels are dipping down into extreme seller’s market levels.
1% Decrease in Number of Homes Listed for Sale
In February 2020, we saw 1,043 homes introduced to the market compared to 1,049 in February 2019, marking a 1% (6 home) decrease in year over year numbers.
Supply Down 20% and Demand Up 2%
This month we saw a 20% decrease in supply (number of properties for sale) and a 2% increase in demand (number of sold properties).
Median for Sale Up 9% vs Median Sold Price Up 13%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 9% increase in the median for sale price and a 13% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
February 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 February 2020 Austin home sales below. The most expensive home that sold in February 2020 sold for $6,750,000 and the least expensive home sold for $169,000. Homes ranged in size from 466 sqft – 8,429 sqft with an average size of 2,165 sqft. The average price per square foot for a home that sold in Austin in February 2020 was $250390 with the lowest being $91.90/sqft and the highest being $1,168.83/sqft. It took, on average, 46 days to sell a home in Austin and sellers received, on average, 98.13% of their original list prices.
|Beds||Baths||SqFt||List Price||LP/SqFt||Sold Price||SP/SqFt||SP/LP||SP/OLP||ADOM|
|Property Type||Single Family Homes||Number Sold||807|
|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 down to 1.3 months, which is extreme seller’s market levels. Though demand is only up 2%, supply is down 20%, so buyers are definitely feeling the shortage. And, with new listings down 1%, we don’t see that shortage being alleviated any time soon, especially as we head into spring when we see demand increase. With this decrease in supply, it’s no wonder median price is up 13% and expired listings are down 5%. Motivated buyers are in the market, snatching up inventory. Sellers who are looking to sell should get their homes on the market soon and take advantage of this pre spring bump. If you wait until later in spring, you’ll be competing with a lot more homes.
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 demand hasn’t picked up as much as it is expected to this spring. If supply doesn’t increase and demand increases in spring, you’ll likely be paying more for a home because there are only so many homes available. Buying earlier in the season usually works out better for buyers in the long run. Also, interest rates are at historic lows. Combine a more competitive price and lower interest rates, your payment will likely be less than it would if you bought in spring. Talk is rates are bound to go up at some point. Interest rates are the single biggest driver of increases in payments. You could end up paying less per month for a more expensive home. Plus, you have this odd time of year on your side. Buyers who think we are approaching the slow time of year 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.