Eleven Oaks Realty is proud to present their November 2021 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 24%
The biggest story this month: median home prices in Austin up, as they have been for months. Though we hear rumors that the market is slowing down, the stats, especially median home prices, certainly do not support those claims. Prices continue to go up significantly and I don’t really see that slowing down any time soon given we are still seeing 40+ offers on some homes. The median price of an Austin home in November 2020 was $485,000 compared to $600,000 in November 2021, up 24% ($115,000) 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 simply not going down. If you’re waiting for that to happen, you probably should look to buy in another city. Prices are leveling off a bit, but do seem to be trending upwards as we close out the year. Could that be a sign of what’s to come in spring? Perhaps. Typically we see prices trend downwards from summer numbers, so we might be getting ready to really amp up next spring. If that happens, you’ll have not only price increases but demand increase, which will drive up prices more. If you’re looking to buy, the data is showing you might want to get your search started now versus waiting. The good news now is interest rates are still low. We keep hearing how they’ll start to go up, but haven’t seen it yet. Eventually they will, and that will affect affordability far more than prices will. If you’re looking to buy, start your search now and hopefully get into something before the busy spring/summer season takes off.
What does this mean to sellers? With inventory at just under 1 month, we are in an extreme seller’s market. Most winter seasons, we see a slow down. But, it doesn’t seem we’ll see too much of that now. Sure, we’ll see fewer buyers in the market, but homes that are presented well and not priced absurdly over the comps are still getting multiple offers. And, you only need one, so a few offers are usually enough to generate a very favorable offer for a seller. Get your home ready to meet the market now and you’ll be ready to go either before Christmas or right after, when demand really picks up.
4% Decrease in Time to Sell Home in Austin
In November 2021, it took only 24 days to sell a home in Austin, on average, compared to 25 days in November 2020, marking a 4% (1 day) decrease in year over year numbers. For homes that are presented as a value, they often sell in just a few days with multiple offers over asking. We have others who have sellers that are unrealistic with their prices and buyers are not as quick to jump on those. The biggest culprits of that lately have been companies like OpenDoor and Zillow, who overpaid for homes and now are trying to recoup some of their losses. They’ll set insanely high prices and homes will sit on the market. The median time to sell a home in Austin was only 10 days, which is more representative of how quickly the market is moving.
Number of Homes Taken Off the Market Saw a 39% Increase
In November 2021, there were 163 homes taken off the market compared to 117 in November 2020. This marked a 39% (46 home) increase in year over year numbers. Though we are seeing multiple offers, buyers are not jumping on homes that are grossly overpriced. Some sellers are testing the market, pricing way above comps and hoping they’ll find a buyer who is tired of waiting and who will given in and pay their price. When that doesn’t happen, they take their home off the market instead of adjusting the price. So, though this market is strong, buyers are not willing to grossly overpay.
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 12% Decrease
Austin saw a 12% decrease in the number of homes sold comparing November 2020 to November 2021. In November 2021, we saw 957 homes sell in Austin compared to 1,091 in November 2020 marking a 12% (134 home) decrease in year over year numbers. With fewer sales, you might be tempted to think the market is slowing down. However, that is simply not the case. What we’re seeing is fewer sellers are able to see how they’ll find a place to move, or don’t want to pay the higher prices we’re seeing now. Therefore, they won’t list their homes to sell for fear they’ll be homeless. In years past, we would see more homeowners trading up or down, but with prices soaring upwards, we are seeing fewer across town moves unless they have a reason. So, this is translating in the numbers as fewer sales.
9% Increase in Austin Housing Inventory
In November 2021, we saw 0.9 months of inventory on the market, compared to 0.8 months of inventory in November 2020, showing a 9% (0.1 month) increase in year over year numbers. With inventory levels at less than 1 month, we are in extreme seller’s market territory. Though the percentages seem high, 0.9 months of inventory is certainly not high, just a bit higher than at this time last year.
Austin Homes Under Contract Saw a 2% Increase
In November 2021, 961 homes went pending (under contract) in Austin compared to 939 in November 2020, marking a 2% (22 home) decrease in year over year numbers. If we had more inventory, I believe we’d see more homes accept a contract.
9% Increase in Number of Homes on the Market
In November 2021, we had 1,944 homes for sale in Austin, compared to 1,791 in November 2020, showing a 9% (153 home) increase in year over year numbers. The increase in number of homes on the market isn’t translating to an increase in sales, partially in part to the fact that much of this “increase” is from sellers who are testing the market at prices above comps. That group of homes is sitting, and basically untouchable by reasonable buyers who are not wanting to overpay.
1% Increase in Number of Homes Listed for Sale
In November 2021, we saw 797 homes introduced to the market compared to 792 in November 2020, marking a 1% (5 home) increase in year over year numbers.
Supply Up 9% and Demand Down 12%
This month we saw a 9% increase in supply (number of properties for sale) and a 12% decrease in demand (number of sold properties). Though demand is down, that is more of a function of not enough inventory priced in line with the market versus too much supply. When a home in good condition is priced well, you’ll see buyers flock to it. I made an offer on a house a few days ago that had over 40 offers and went for 25% above list. Demand is there if there is enough supply.
Median for Sale Up 8% vs Median Sold Price Up 24%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 8% increase in the median for sale price and a 24% increase in the median sold price of single family homes in year over year numbers. These figures show buyers are willing to pay more than list price for homes they see as a value.
Source: Clarus Market Metrics, ACTRIS Sold Data
November 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 November 2021 Austin home sales below. The most expensive home that sold in November 2021 sold for $8,575,000 and the least expensive home sold for $219,000. Homes ranged in size from 572 sqft – 12,856 sqft with an average size of 2,164 sqft. The average price per square foot for a home that sold in Austin in November 2021 was $354.16 with the lowest being $147.06/sqft and the highest being $1,494.57/sqft. It took, on average, 20 days to sell a home in Austin and sellers received, on average, 99.8% 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||November 2021|
|Property Type||Single Family Homes||Number Sold||960|
|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. We are in extreme seller’s market territory, despite heading into one of the seasonally more slow times of year. But, buyers aren’t taking a break because they honestly can’t. If they want to be successful, they won’t get to take time off for things like the holidays. They’ll have to push through. And, sellers who want to sell, should take advantage. If interest rates ever do go up, that will put the brakes on home buying and you don’t want to get stuck there. Median price is up 24% from last year and has been up every month for years. Serious buyers are in the market and ready to pay more than they have in years past.
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 5%’s. Buyers who act quickly will have a jump on others who are rtaking 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.