Eleven Oaks Realty is proud to present their July 2021 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 40%
The biggest story this month: median home prices in Austin up, as they have been for months. Though we are seeing the signs of a market slowing down just a tad, (and very likely only due to a seasonal trend we see every year at the end of the summer) we aren’t seeing prices go down. Prices are up significantly from last year and have been holding strong since spring. Though some have said prices will slide back down, I’m not seeing it. Sellers who have their homes priced at top dollar are holding it there. It might take longer than it did a few months ago, but they are getting a buyer who is tired of losing at multiple offers and willing to pay them what they’re asking. The median price of an Austin home in July 2020 was $465,750 compared to $650,000 in July 2021, up 40% ($184,250) in year over year numbers.
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? Prices are not sliding down. They appear to be leveling off a bit, which is great news for buyers who see a house listed and automatically think they’ll have to pay 20-30% more. We’re seeing some of the homes priced on the higher end sell for around list price. Though we do still see multiple offers with bids 20-30% over, it isn’t the norm as it was in April. Buyers know home buying will take some time and they are willing to be patient. They are still willing to pay 40% more, on average, than buyers last year, but the market has completely changed. Interest rates are still low and they are expected to stay low for a while, which is helping affordability. But, buyers still need to be on top of their home search, not wait to look at houses and get offers in quickly. Sellers used to be giving it a few days at least for buyers to see homes, but now many of them are taking the first solid offer they get. Know what you want so you can make decisions quickly when a home that meets the criteria is listed.
What does this mean to sellers? With inventory at 1 month, we are in an extreme seller’s market. Inventory has increased 1/2 month from June, so you’ll still want to prepare your home to meet its new owner. Often times we see homes listed with iPhone photos of homes that weren’t even tidied up. Buyers are willing to pay a lot more than they were last year, but they are not willing to do so for homes that aren’t ready to meet their new owners. Though the market is hot, spend some time preparing your home to sell and you’ll have much better results than if you didn’t.
53% Decrease in Time to Sell Home in Austin
In July 2021, it took only 13 days to sell a home in Austin, on average, compared to 27 days in July 2020, marking a 53% (14 day) decrease in year over year numbers. As I mentioned above, some sellers aren’t even waiting the few days they were before to give buyers a chance to see it. Some are accepting the first good offer they receive, which might be only hours after their home is listed. The median time to sell a home in Austin was only 6 days, which is more representative of how quickly the market is moving.
Number of Homes Taken Off the Market Saw a 23% Decrease
In July 2021, there were 175 homes taken off the market compared to 228 in July 2020. This marked a 23% (53 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 21% Decrease
Austin saw a 21% decrease in the number of homes sold comparing July 2020 to July 2021. In July 2021, we saw 1,154 homes sell in Austin compared to 1,456 in July 2020 marking a 21% (302 home) decrease in year over year numbers. Sellers are still continuing to be aggressive with pricing and buyers are hesitant to make offers on a house priced at the top of the range knowing they’ll likely have to pay more. It’s not that less buyers are in the market. It’s more that buyers are having to reevaluate their strategies to balance affordability with a home they want to live in.
18% Decrease in Austin Housing Inventory
In July 2021, we saw 1.0 months of inventory on the market, compared to 1.2 months of inventory in July 2020, showing an 18% (0.2 month) decrease in year over year numbers. With inventory levels at 1 month, we are in extreme seller’s market territory. We did see a small increase from last month, but we typically see this every July and August as buyers who haven’t found something put their home search on hold until after Labor Day. It will be interesting to see what the next few months bring.
Austin Homes Under Contract Saw a 15% Decrease
In July 2021, 1,120 homes went pending (under contract) in Austin compared to 1,323 in July 2020, marking a 15% (203 home) decrease in year over year numbers.
24% Decrease in Number of Homes on the Market
In July 2021, we had 2,393 homes for sale in Austin, compared to 3,138 in July 2020, showing a 24% (745 home) decrease in year over year numbers. Fewer sellers are listing their homes on the market because many of them don’t have a place to go and don’t want to deal with multiple offers and 40% price increases. So, they are deciding to stay put and improve their houses versus finding a new one.
2% Increase in Number of Homes Listed for Sale
In July 2021, we saw 1,550 homes introduced to the market compared to 1,524 in July 2020, marking a 2% (26 home) increase in year over year numbers. Though we are seeing more sellers than we saw last year, it still isn’t enough to meet the demand.
Supply Down 24% and Demand Down 21%
This month we saw a 24% decrease in supply (number of properties for sale) and a 21% decrease in demand (number of sold properties). With considerably less supply, it is harder for buyers to find something. Though demand is down, I believe it is because there isn’t enough supply and buyers aren’t willing to wildly overpay for every single house that comes up. They’ll be patient and wait for the right house for them.
Median for Sale Up 14% vs Median Sold Price Up 40%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 14% increase in the median for sale price and a 40% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
July 2021 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for July 2021 Austin home sales below. The most expensive home that sold in July 2021 sold for $9,500,000 and the least expensive home sold for $200,000. Homes ranged in size from 676 sqft – 12,206 sqft with an average size of 2,222 sqft. The average price per square foot for a home that sold in Austin in July 2021 was $371.26 with the lowest being $128.21 sqft and the highest being $1,9255.40/sqft. It took, on average, 6 days to sell a home in Austin and sellers received, on average, 106.80% of their original list prices.
|Beds||Baths||SqFt||List Price||LP/SqFt||Sold Price||SP/SqFt||SP/LP||SP/OLP||ADOM|
|Status||Sold||Sold Date||July 2021|
|Property Type||Single Family Homes||Number Sold||1,156|
|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 a little higher this month, but still at extreme seller’s market levels. Demand is down, but supply is down more and buyers are having trouble finding a home. With more inventory, demand would surely increase. And, since buyers in the market now are used to multiple offers and overbids, there’s a good chance they’ll come in with a very strong offer. That is, unless your home is wildly overpriced. We are starting to see more of those and buyers aren’t jumping at them as quickly as they are something that’s priced in a better position. The best way to drive up your home’s price is to make it stand out as a value and let buyers bid. Homes taken off the market are down 23% which is causing record low inventory. New listings are up 2%, but it still isn’t enough to keep up with significant increases in demand. 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 10 days, which is less than half the time it took last year. Median time to sell is 6 days, which is more representative on how much time buyers usually have to make a decision. Often times much less. 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 interested rates are still low, so affordability is not as affected as it would have been in year’s past. Though we are seeing multiple offers, overbids and lines to get into properties, payments are not what they would have been had interest rates remained in the 4 and 5%’s. Buyers who act quickly will have a jump on others who are taking their time. 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.