Eleven Oaks Realty is proud to present their October 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 did not see 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 October 2019 was $420,000 compared to $492,500 in October 2020, up 17% ($72,500) in year over year numbers. We typically start to see prices cool a bit starting in October, but this year we saw the opposite. It will be interesting to see how the market shifts, if at all, during the holiday break.
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 market to slow down, it doesn’t appear that will happen any time soon. Despite a global pandemic, prices are still inching up and multiple offers and overbids are the norm. We are seeing both local buyers looking for a more quarantine friendly home as well as out of town buyers from bigger coastal cities looking to get out of the densely populated cities. With more demand than supply, it’s no wonder prices are going up. Plus, with inventory at below 1 month and nothing to replace it with, we will continue to see prices go up. Interest rates are at lowest levels we have seen in the history of the market and buyers are taking advantage. 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 under 1 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 37%, while demand is up 13%. 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 25 days, down 15 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.
38% Decrease in Time to Sell Home in Austin
In October 2020, it took only 25 days to sell a home in Austin, on average, compared to 40 days in October 2019, marking a 38% (15 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 25% Decrease
In October 2020, there were 170 homes taken off the market compared to 226 in October 2019. This marked a 25% (56 home) decrease in year over year numbers. With more buyers in the market and less inventory, it’s not surprising fewer home owners took 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 13% Increase
Austin saw a 13% increase in the number of homes sold comparing October 2019 to October 2020. In October 2020, we saw 1,161 homes sell in Austin compared to 1,032 in October 2019 marking a 13% (129 home) increase in year over year numbers. We are still seeing strong sales numbers later into the year than we normally see them.
69% Decrease in Austin Housing Inventory
In October 2020, we saw 0.8 months of inventory on the market, compared to 2.7 months of inventory in October 2019, showing a 69% (1.8 months) 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.
Austin Homes Under Contract Saw a 25% Increase
In October 2020, 1,148 homes went pending (under contract) in Austin compared to 916 in October 2019, marking a 25% (232 home) increase in year over year numbers. Buyers are continuing to come out in high numbers.
37% Decrease in Number of Homes on the Market
In October 2020, we had 2,256 homes for sale in Austin, compared to 3,574 in October 2019, showing a 37% (1,318 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.
17% Increase in Number of Homes Listed for Sale
In October 2020, we saw 1,207 homes introduced to the market compared to 1,033 in October 2019, marking a 17% (174 home) increase in year over year numbers. Despite the typical market trend for less homes to be listed this time of year, we are seeing an increase. I suspect we will not see the typical Holiday slowdown this year as well. Next month’s numbers will be interesting.
Supply Down 37% and Demand Up 13%
This month we saw a 37% decrease in supply (number of properties for sale) and a 13% 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 21% 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 21% 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
October 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 October 2020 Austin home sales below. The most expensive home that sold in October 2020 sold for $5,150,000 and the least expensive home sold for $157,000. Homes ranged in size from 368 sqft – 9,674 sqft with an average size of 2,311 sqft. The average price per square foot for a home that sold in Austin in October 2020 was $275.73 with the lowest being $104.94/sqft and the highest being $1,509.43/sqft. It took, on average, 25 days to sell a home in Austin and sellers received, on average, 99.29% 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||1,162|
|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 less than 1 month, which indicates an extreme sellers market. Demand is up 13% while supply is down 37%, 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 25% and new listings are up 17%, 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 go up 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 25 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 end of summer 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.
Curious How Much You Could Sell Your Austin Home For?
Our Market Snapshot Tool is for you. With just your zip code, we’ll email you a detailed report showing what homes in your neighborhood sold for, how long it took to sell and how the market is trending. Though our Austin Real Estate Price Report is helpful in gauging the overall trend of the market, it doesn’t address neighborhoods specifically. If you’re looking for that type of report, put in your name and zip code below and our system will email you a Neighborhood Market Report.
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.