Eleven Oaks Realty is proud to present their September 2021 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 28%
The biggest story this month: median home prices in Austin up, as they have been for months. Prices are not going down, as some predicted last year when prices shot up. Buyer demand remains strong and buyers are making strong offers on homes, even though some of them are priced on the higher side. Buyers who are tired of being on the house hunt are giving in and paying sellers what they want. They aren’t going crazy and paying way more than what they think the house is worth, but they typically give in to a seller’s price. Because, they know if they don’t, another buyer will. The median price of an Austin home in September 2020 was $466,285 compared to $595,000 in September 2021, up 28% ($128,715) 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 not plummeting as was predicted when we saw the increases start. They aren’t as high as they were in the peak spring and early summer months, which is a sign they might be leveling off. Buyers don’t automatically have to pay 20-40% more than list prices as often as they used to. We’re seeing some of the homes priced on the higher end sell for around list price and others requiring price reductions to find a buyer. Though we do still see multiple offers with overbids, 20-30% over isn’t the norm as it was earlier this year. Buyers know home buying will take some time and they are willing to be patient. They are still willing to pay 28% more, on average, than buyers last year, but the market has completely changed. Interest rates are still low and they are expected to stay low for a while, which is helping affordability. But, buyers still need to be on top of their home search, not wait to look at houses and get offers in quickly. Sellers used to be giving it a few days at least for buyers to see homes, but now some of them are taking the first solid offer they get. Know what you want so you can make decisions quickly when a home that meets the criteria is listed.
What does this mean to sellers? With inventory at just over 1 month, we are in an extreme seller’s market. Inventory has increased from the peak buying season, so you’ll still want to prepare your home to meet its new owner. Often times we see homes listed with iPhone photos of homes that weren’t even tidied up. Buyers are willing to pay a lot more than they were last year, but they are not willing to do so for homes that aren’t ready to meet their new owners. Though the market is hot, spend some time preparing your home to sell and you’ll have much better results than if you didn’t.
18% Decrease in Time to Sell Home in Austin
In September 2021, it took only 20 days to sell a home in Austin, on average, compared to 25 days in September 2020, marking an 18% (5 day) decrease in year over year numbers. Homes would often sell faster if sellers didn’t want to give it a few days to test the market. The median time to sell a home in Austin was only 8 days, which is more representative of how quickly the market is moving.
Number of Homes Taken Off the Market Saw a 20% Increase
In September 2021, there were 197 homes taken off the market compared to 164 in September 2020. This marked a 20% (33 home) increase in year over year numbers. Last September we were in the height of the pandemic and sellers who weren’t serious about selling weren’t. So, we were seeing fewer homes get taken off the market. This year we are seeing more sellers test the market and listing at a large number. Buyers are willing to pay more this year, but they aren’t willing to overpay. When sellers who can’t get their inflated number don’t sell, they end up taking their homes off the market rather than reducing the price.
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 14% Decrease
Austin saw a 14% decrease in the number of homes sold comparing September 2020 to September 2021. In September 2021, we saw 1,022 homes sell in Austin compared to 1,189 in September 2020 marking a 14% (167 home) decrease in year over year numbers. Though we are seeing fewer sales, it’s not because there are fewer buyers in the market. It is because there is not enough inventory. You’ll see this when a hot home comes on the market and you’ll be up against 15 offers. Overpriced homes might get one offer or no offers, but homes priced right and in good condition are going to generate a lot of interest. Buyers are being much more patient this year than they have been in previous. They know the house hunt might take some time and they’d rather put in the time than grossly overpay.
29% Increase in Austin Housing Inventory
In September 2021, we saw 1.3 months of inventory on the market, compared to 1.0 months of inventory in September 2020, showing a 29% (0.3 month) increase in year over year numbers. With inventory levels at 1 month, we are in extreme seller’s market territory. Though the percentages seem high, 1.3 months of inventory is certainly not high.
Austin Homes Under Contract Saw an 11% Decrease
In September 2021, 973 homes went pending (under contract) in Austin compared to 1,095 in September 2020, marking an 11% (122 home) decrease in year over year numbers. Again, with fewer options for buyers, fewer homes are going under contract as compared to this time last year.
3% Increase in Number of Homes on the Market
In September 2021, we had 2,424 homes for sale in Austin, compared to 2,353 in September 2020, showing a 3% (71 home) increase in year over year numbers. Though we are seeing a small increase, remember we are comparing to this time last year, which was right in the middle of the pandemic. Though we are still in the pandemic, people have returned to a more normal than they were last year when it comes to buying and selling homes. When you compare this month to a normal September, we are still at a lot fewer homes on the market than we have been in years past.
15% Increase in Number of Homes Listed for Sale
In September 2021, we saw 1,290 homes introduced to the market compared to 1,117 in September 2020, marking a 15% (173 home) increase in year over year numbers. It seems more sellers are confident in the market and are listing later in the year than they might have in previous years. It still doesn’t seem to be enough to meet demand, however.
Supply Up 3% and Demand Down 14%
This month we saw a 3% increase in supply (number of properties for sale) and a 14% decrease in demand (number of sold properties). Though demand is down, that is more of a function of not enough inventory versus too much supply. When a home in good condition is priced well, you’ll see buyers flock to it.
Median for Sale Up 8% vs Median Sold Price Up 28%
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 28% 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
September 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 September 2021 Austin home sales below. The most expensive home that sold in September 2021 sold for $11,650,000 and the least expensive home sold for $225,000. Homes ranged in size from 540 sqft – 17,800 sqft with an average size of 2,160 sqft. The average price per square foot for a home that sold in Austin in September 2021 was $350.20 with the lowest being $134.29/sqft and the highest being $1,702.33/sqft. It took, on average, 16 days to sell a home in Austin and sellers received, on average, 100.94% 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||September 2021|
|Property Type||Single Family Homes||Number Sold||1,020|
|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 a little higher this month, but still at seller’s market levels. Demand is down, but my opinion is that’s only because there isn’t enough inventory on the market and buyers are waiting versus making an offer on something they hate. Buyers are coming in with strong offers, even on homes that don’t have a ton of offers. They know their competition is strong and they are willing to be competitive to get a house. That is, unless your home is grossly overpriced. We are starting to see more of those and buyers aren’t jumping at them as quickly as they are something that’s priced in a better position. The best way to drive up your home’s price is to make it stand out as a value and let buyers bid. New listings are up 15%, but it still isn’t enough to keep up with the buyers in the market. 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 16 days, which is significantly less time than it took last year. Median time to sell is 8 days, which is more representative on how much time buyers usually have to make a decision. Often times much less. 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 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 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.