Eleven Oaks Realty is proud to present their May 2020 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 2%
The biggest story this month: median home prices in Austin up again, despite the coronavirus crisis. The median price of an Austin home in May 2019 was $427,500 compared to $436,310 in May 2020, up 2% ($8,810) in year over year numbers. The Austin housing market is still strong and climbing, even during a challenging economic time globally.
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? Despite seeing a slow down in supply and demand for the second straight month, we are not seeing any reduction in prices. The Austin real estate market is strong. We aren’t seeing as many sales, but we are seeing homes sell for more this year than last year. We said last month that most experts are predicting the Austin real estate market won’t be affected too much from coronavirus and the numbers seems to be proving that. As with the last few months, we are seeing less activity, but still very serious activity. Buyers have strong competition. And sellers aren’t taking low ball offers. 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 supply down 19% and demand down 42%, sellers will have to position their homes well to snag a quick buyer. We aren’t seeing the lines of people waiting to see houses that we have the last few springs. But, we are still seeing a solid core of serious buyers. And, since supply is down, these buyers are still feeling that pinch. Time to sell is also down to 28 days, down 5 days from last year, proving that serious buyers ready to act are still in the market. And, with median pice is up 2%, 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.
15% Decrease in Time to Sell Home in Austin
In May 2020, it took only 28 days to sell a home in Austin, on average, compared to 33 days in May 2019, marking a 15% (5 day) decrease in year over year numbers. Despite our decrease in number of buyers in the market, this decrease in time to sell proves there are serious buyers ready to make decisions quickly.
Number of Homes Taken Off the Market Saw a 21% Increase
In May 2020, there were 187 homes taken off the market compared to 155 in May 2019. This marked a 21% (32 home) increase in year over year numbers. We continue to see sellers being spooked into taking their homes off the market. When you combine this with fewer new listings, it’s no wonder buyers are still feeling the inventory crunch.
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 42% Decrease
Austin saw a 42% decrease in the number of homes sold comparing May 2019 to Map 2020. In May 2020, we saw 765 homes sell in Austin compared to 1,310 in May 2019 marking a 42% (545 home) decrease in year over year numbers. Closed sales lag a month behind with under contract sales, so it is not surprising we saw such a big drop off in May due to the lockdown in March and April.
31% Decrease in Austin Housing Inventory
In May 2020, we saw 1.4 months of inventory on the market, compared to 2.0 months of inventory in May 2019, showing a 31% (0.6 month) decrease in year over year numbers. With the decrease in new listings, increase in expired listings, it is not surprising we have seen a drop off in inventory. If you’re a buyer in the market now, you probably feel like it’s a similar situation to what we’ve seen in years past. With inventory levels less than a month and a half, we are definitely still in a seller’s market.
Austin Homes Under Contract Saw No Change
In May 2020, 1,246 homes went pending (under contract) in Austin compared to 1,241 in May 2019, marking a 5 home increase in year over year numbers. We are starting to see the recovery from the shut down. It will be interesting to see what next month’s numbers show.
19% Decrease in Number of Homes on the Market
In May 2020, we had 3,169 homes for sale in Austin, compared to 3,891 in May 2019, showing a 19% (722 home) decrease in year over year numbers. We have seen a reduction in both buyer and seller activity. But, since both are down, we are still seeing an extreme seller’s market.
21% Decrease in Number of Homes Listed for Sale
In May 2020, we saw 1,335 homes introduced to the market compared to 1,693 in May 2019, marking a 21% (358 home) decrease in year over year numbers.
Supply Down 19% and Demand Down 42%
This month we saw a 19% decrease in supply (number of properties for sale) and a 42% decrease in demand (number of sold properties).
Median for Sale Up 11% vs Median Sold Price Up 2%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 11% increase in the median for sale price and a 2% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
May 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 May 2020 Austin home sales below. The most expensive home that sold in May 2020 sold for $4,650,000 and the least expensive home sold for $165,000. Homes ranged in size from 624 sqft – 7,211 sqft with an average size of 2,189 sqft. The average price per square foot for a home that sold in Austin in May 2020 was $249.55 with the lowest being $101.01/sqft and the highest being $809.40/sqft. It took, on average, 22 days to sell a home in Austin and sellers received, on average, 98.70% 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||775|
|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 1.4 months, which indicates a strong sellers market. Though demand is down 42%, supply is down 19% and expired listings are up 21%, so buyers are still feeling the effects of fewer choices. And, with new listings down 21%, we don’t see inventory replenishing fast enough to keep up with the demand we are seeing. With inventory levels so low, we would have to see an extremely drastic reduction in demand to shift to a buyer’s market. With this decrease in supply and big increase in expired listings (up 21%), it’s no wonder median price is up 2%. 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.