Eleven Oaks Realty is proud to present their January 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. The median price of an Austin home in January 2019 was $360,500 compared to $420,000 in January 2020, up 17% ($59,500) in year over year numbers. This winter has been a much more active winter than year’s past. Buyers who are looking to secure the home they’ve been looking for are paying more to be sure they are the winning bidder. Sellers should be pleased by this significant price increase.
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. I can’t remember a price report in the past several years where median price was not up in year over year numbers. If you’re waiting for the market to slow down, you might be waiting a while. This year has started strong, so your best bet is to buy earlier in the season versus later. We have a housing shortage in Austin and the area is booming. We’re seeing both home buyers and investors snatching up inventory. 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 new listings down 10%, sellers who position their home well will have no trouble getting a buyer. Though it is taking about 47 days to sell a home in Austin, sellers who are successful get about 17% more than they would have at this time last year, so it pays to be patient. 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.
18% Decrease in Time to Sell Home in Austin
In January 2020, it took 47 days to sell a home in Austin, on average, compared to 57 days in January 2019, marking an 18% (10 home) decrease in year over year numbers. Again this month homes are selling faster than they did this time last year. Though we are seeing the typical seasonal uptick from spring/summer time to sell, we are not seeing as much of an uptick as we did last year. Buyers are making decisions much faster this January.
Number of Homes Taken Off the Market Saw a 16% Decrease
In January 2020, there were 134 homes taken off the market compared to 160 in January 2019. This marked a 16% (26 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 6% Decrease
Austin saw 6% decrease in the number of homes sold from January 2019 to January 2020. In January 2020, we saw 559 homes sell in Austin compared to 594 in January 2019 marking a 6% (35 home) decrease in year over year numbers. With reduced inventory, buyers had fewer choices and therefore fewer sales.
38% Decrease in Austin Housing Inventory
In January 2020, we saw 1.5 months of inventory on the market, compared to 2.4 months of inventory in January 2019, showing a 38% decrease in year over year numbers. This is the lowest we’ve seen inventory in the past year plus, even lower than spring inventory. If we don’t see more inventory come online, we will continue to dip into a more extreme seller’s market.
Austin Homes Under Contract Up 9%
In January 2020, 879 homes went pending (under contract) in Austin compared to 808 in January 2019, marking a 9% (71 home) increase in year over year numbers.
20% Decrease in Number of Homes on the Market
In January 2020, we had 2,294 homes for sale in Austin, compared to 2,882 in January 2019, showing a 20% (588 home) decrease in year over year numbers. With fewer homes for sale, it’s no wonder we are seeing an extreme drop in Austin housing inventory.
10% Decrease in Number of Homes Listed for Sale
In January 2020, we saw 900 homes introduced to the market compared to 1,001 in January 2019, marking a 10% (101 home) decrease in year over year numbers. It will be interesting to see if sellers are holding off for later in spring or if there are going to be fewer homes listed for sale this year.
Supply Down 20% and Demand Down 6%
This month we saw a 20% decrease in supply (number of properties for sale) and a 6% decrease in demand (number of sold properties).
Median for Sale Up 9% 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 9% 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
January 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 January 2020 Austin home sales below. The most expensive home that sold in January 2020 sold for $4,199,000 and the least expensive home sold for $147,000. Homes ranged in size from 520 sqft – 7,887 sqft with an average size of 2,173 sqft. The average price per square foot for a home that sold in Austin in January 2020 was $241.00 with the lowest being $60.92/sqft and the highest being $769.23/sqft. It took, on average, 46 days to sell a home in Austin and sellers received, on average, 96.64% 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||561|
|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 1.5 months, which is extreme seller’s market levels. Though demand is down 6%, supply is down 20%, so buyers are definitely feeling the shortage. And, with new listings down 10%, 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 17% and expired listings are down 16%. 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 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 is still down. 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.