Eleven Oaks Realty is proud to present their June 2020 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 8%
The biggest story this month: median home prices in Austin up again, despite the coronavirus crisis. The median price of an Austin home in June 2019 was $425,000 compared to $460,000 in June 2020, up 8% ($35,000) in year over year numbers. As we head deeper into another round of possible shutdowns, it seems house hunters are still paying more than they were last year. This definitely speaks to the strength of the Austin housing market.
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? If you’re waiting for the Austin housing market to slow down and prices to decrease, it doesn’t seem like it’s going to happen. Though we are in the middle of a global pandemic, we are still seeing Austin housing prices increase. Buyers were quicker to get back into market than sellers, and they are competing for homes that meet their needs. We can’t deny the Austin real estate market is strong and not skipping a beat. Though we aren’t seeing as many sales, we are seeing homes sell for more this year than last year. It seems the experts predicting the coronavirus would have little impact on the Austin housing market were right. The activity that is in the market, both on the buyer and seller side, are serious. We aren’t seeing as many tire kickers. Just motivated buyers and sellers. Buyers have strong competition, stronger competition than sellers at this point. That being said, sellers aren’t taking low ball offers from buyers who think they are going to use world events to get a bargain basement deal. Buyers and sellers are buying and selling at fair prices. And, with interest rates at historic lows, payments will be as affordable as they’ve been in years. If you’re thinking of buying, get pre-approved now, so when the right one comes available, you’ll be ready to act.
What does this mean to sellers? With inventory at 1.1 months, we are in an extreme seller’s market. Buyers who pressed pause on their home searches are back at it. Supply down is down 21%, while demand is only down 4%. We are starting to see lines, multiple offers and overbids. Not to the extent we saw them a few years ago, but they are out there. With inventory so low, buyers are definitely feeling the pinch. Time to sell is also down to 28 days, down 2 days from last year, proving that serious buyers ready to act are still in the market. And, with median pice is up 8%, 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.
5% Decrease in Time to Sell Home in Austin
In June 2020, it took only 28 days to sell a home in Austin, on average, compared to 29 days in June 2019, marking a 5% (2 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 7% Decrease
In June 2020, there were 169 homes taken off the market compared to 181 in June 2019. This marked a 7% (12 home) decrease in year over year numbers. For the first time since the coronavirus crisis started, we are seeing a slow down in the number of homes taken off the market. Sellers who are listing their homes not seem to be more motivated to sell than they were at this time last year.
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 4% Decrease
Austin saw a 4% decrease in the number of homes sold comparing June 2019 to June 2020. In June 2020, we saw 1,169 homes sell in Austin compared to 1,223 in June 2019 marking a 4% (54 home) decrease in year over year numbers. Though we are still down from last year, we are only down 54 homes. It will be interesting if we see an increase through the end of summer to make up for those who were on pause during the lockdown.
49% Decrease in Austin Housing Inventory
In June 2020, we saw 1.1 months of inventory on the market, compared to 2.1 months of inventory in June 2019, showing a 49% (1.0 month) decrease in year over year numbers. With inventory levels just over 1 month, we are in extreme seller’s market territory. If we don’t see an increase in new listings, we could see some significant price increases towards the end of summer.
Austin Homes Under Contract Saw an 18% Increase
In June 2020, 1,438 homes went pending (under contract) in Austin compared to 1,220 in June 2019, marking an 18% (218 home) increase in year over year numbers. It seems buyers are getting back to their house hunts. Sellers should take notice and get their homes on the market soon to capitalize on the inventory shortage.
21% Decrease in Number of Homes on the Market
In June 2020, we had 3,141 homes for sale in Austin, compared to 3,976 in June 2019, showing a 21% (835 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 inventory shortages.
12% Decrease in Number of Homes Listed for Sale
In June 2020, we saw 1,302 homes introduced to the market compared to 1,478 in June 2019, marking a 12% (176 home) decrease in year over year numbers.
Supply Down 21% and Demand Down 4%
This month we saw a 21% decrease in supply (number of properties for sale) and a 4% decrease in demand (number of sold properties). Though we are seeing a decrease in both supply and demand, we saw a significant increase in demand since last month. Buyers seem less hesitant of world events and are back to moving their house hunt forward.
Median for Sale Up 15% vs Median Sold Price Up 8%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 15% increase in the median for sale price and an 8% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
June 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 June 2020 Austin home sales below. The most expensive home that sold in June 2020 sold for $8,800,000 and the least expensive home sold for $115,000. Homes ranged in size from 640 sqft – 12,412 sqft with an average size of 2,300 sqft. The average price per square foot for a home that sold in Austin in June 2020 was $255.28 with the lowest being $85.03/sqft and the highest being $1,657.25/sqft. It took, on average, 25 days to sell a home in Austin and sellers received, on average, 98.84% 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||1,179|
|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 1.1 months, which indicates an extreme sellers market. Demand is only down 4%, while supply is down 21%, so buyers are definitely feeling the shortage. Homes taken off the market are down 7%, which shows more buyers are getting lucky with a buyer than they were last year, so fewer sellers are having to take their homes off the market. And, with new listings down 12%, we don’t see inventory replenishing fast enough to keep up with the demand we are seeing. With inventory levels so low and demand increasing, we will likely see prices go up as well. Motivated buyers are in the market, snatching up inventory, on average, in 28 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.
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. We typically see lines of people waiting to get into homes, multiple offers in a matter of hours and overbids. It’s impossible to predict where things will go in the next few months. Right now we are seeing a slower pace, fair offers and a motivated sellers. It’s more resembling early spring, which can give buyers an edge if they are patient and look for sellers willing to negotiate. 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 wait. 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 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.
Leave a Reply