Eleven Oaks Realty is proud to present their November 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. I feel like a broken record, but every month we continue to see a fairly significant increase in the median price of a home in Austin. Even during the height of the pandemic, we never saw prices decline. In fact, prices seem to be accelerating much later into the year than we have seen in years past. The median price of an Austin home in November 2019 was $416,048 compared to $485,000 in November 2020, up 17% ($68,952) in year over year numbers. We aren’t seeing the typical holiday slowdown this year as we have in previous years.
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? The Austin market isn’t slowing down and median prices only seem to be going up. Despite all of the global issues we faced in 2020, the median price of a home in Austin still managed to increase significantly. Plus, we are only seeing demand rise and supply fall, so we will continue to see prices increase if we don’t get the supply and demand curve balanced out. Waiting for the market to slow down seems to be as slow as watching paint dry. And, the longer you wait, the more you’ll pay. The only saving grace now is mortgage interest rates are low, so your payment won’t be as high as it would be if interest rates were higher. Because interest rates are the single biggest driver of mortgage payments, the price increases really aren’t having an effect on affordability with interest rates where they are. If you’re looking to buy, you might be in one of the most favorable seller’s markets for buyers we’ll ever see, despite inventory. Interest rates have made Austin real estate more affordable than it’s 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. Waiting until we get through this pandemic might mean you end up paying more – both in terms of higher interest rates and mortgage payments and higher home prices.
What does this mean to sellers? With inventory at just over 1/2 month, we are in an extreme seller’s market. We are seeing an influx of local buyers looking for a more quarantine friendly spot and out of town buyers looking to get out of the bigger metropolitan cities. Supply is down 46%, while demand is up 27%. We are seeing lines, multiple offers and overbids – even in the outskirts of Austin. It used to be we only saw these conditions in Central Austin or in Austin neighborhoods with very highly rated schools. Now we are even seeing them as far out as Georgetown and Buda. With inventory so low, buyers are definitely feeling the pinch. Time to sell is also down to 24 days, down 24 days from last year, proving that serious buyers ready to act are still in the market. And, with median pice is up 17%, 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.
50% Decrease in Time to Sell Home in Austin
In November 2020, it took only 24 days to sell a home in Austin, on average, compared to 48 days in November 2019, marking a 50% (24 day) decrease in year over year numbers. Buyers are making decisions much faster than they were this time last year. With low inventory, they are having to jump on good opportunities quickly otherwise they’re gone.
Number of Homes Taken Off the Market Saw a 34% Decrease
In November 2020, there were 132 homes taken off the market compared to 200 in November 2019. This marked a 34% (68 home) decrease in year over year numbers. As we see an increase in demand and decrease in supply, fewer sellers are having to take their homes off the market.
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 27% Increase
Austin saw a 27% increase in the number of homes sold comparing November 2019 to November 2020. In November 2020, we saw 1,070 homes sell in Austin compared to 845 in November 2019 marking a 27% (225 home) increase in year over year numbers. More buyers are coming out this fall than we have seen in previous years. Perhaps because our spring season wasn’t nearly as busy as it has been and buyers are looking to get in something before the end of the year.
74% Decrease in Austin Housing Inventory
In November 2020, we saw 0.7 months of inventory on the market, compared to 2.7 months of inventory in November 2019, showing a 74% (2 month) decrease in year over year numbers. With inventory levels at less than 1 month, we are in extreme seller’s market territory. With less and less inventory, it’s no wonder we are seeing a sharp increase in prices. Buyers are having to pay more to beat out their competition and get under contract.
Austin Homes Under Contract Saw a 16% Increase
In November 2020, 950 homes went pending (under contract) in Austin compared to 817 in November 2019, marking a 16% (133 home) increase in year over year numbers. Buyers don’t seem to be taking a break for the holidays.
46% Decrease in Number of Homes on the Market
In November 2020, we had 1,743 homes for sale in Austin, compared to 3,200 in November 2019, showing a 46% (1,457 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 extreme seller’s market inventory levels.
4% Increase in Number of Homes Listed for Sale
In November 2020, we saw 798 homes introduced to the market compared to 768 in November 2019, marking a 4% (30 home) increase in year over year numbers. Though demand has shot up, sellers aren’t ready to get their homes on the market yet. If we don’t see more sellers adding to the housing inventory, we will continue to see price increases.
Supply Down 46% and Demand Up 27%
This month we saw a 46% decrease in supply (number of properties for sale) and a 27% increase in demand (number of sold properties). With a significant decrease in supply and sizable increase in demand, it’s understandable why we are inventory shortages, multiple offers and overbids. Savvy sellers who are looking at the data and seeing the strength of the market are capitalizing. It seems as though some of them are.
Median for Sale Up 22% 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 22% 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
November 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 November 2020 Austin home sales below. The most expensive home that sold in November 2020 sold for $6,700,000 and the least expensive home sold for $143,990. Homes ranged in size from 523 sqft – 9,891 sqft with an average size of 2,271 sqft. The average price per square foot for a home that sold in Austin in November 2020 was $280.91 with the lowest being $94.84/sqft and the highest being $1,047.53/sqft. It took, on average, 24 days to sell a home in Austin and sellers received, on average, 100.27% 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||1,069|
|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 just over 1/2 month, which indicates an extreme sellers market. Demand is up 27% while supply is down 46%, so buyers are feeling like they are in the middle of one of the hottest spring housing booms we’ve ever seen. Homes taken off the market are down 34% and new listings are up 4%, and despite both of those factors, we still have record low inventory. With inventory levels so low and demand up significantly, we have seen prices increase significantly. 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 24 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. 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 we are still in a much more favorable position than we have been in years past. Interest rates at the lowest points in history is increasing affordability more than the increase in prices. Though we are seeing multiple offers, overbids and lines to get into properties, payments are still at historic lows. The fall and beginning of winter is resembling the peak of one of the hottest spring markets, so you’ll have to be proactive with your search. 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.