Eleven Oaks Realty is proud to present their June 2021 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 43%
The biggest story this month: median home prices in Austin up, as they have been for months. Last year when we used to report price increases, we were talking 2-5%. Maybe 10% in certain months. This year, we are consistently seeing increases of over 30%, and some month’s nearly 50%. If you were waiting last year for prices to go down, you’ve essentially just priced yourself out of the market. Will we continue to see these increases? All indicators are saying yes. Will they continue to rise as quickly as they have been? I sure hope not as that is going to drastically affect affordability. The market is white hot and we are seeing more buyers than sellers in the market. The only thing buyers can do to win is increase their offer prices. And, they aren’t afraid to do so. We are seeing fewer and fewer contingencies, virtually all offers must have a some sort of appraisal waiver and increase option and/or earnest money. The median price of an Austin home in June 2020 was $455,000 compared to $650,000 in June 2021, up 43% ($195,000) 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? The Austin real estate market has been white hot for months now and it doesn’t seem to be slowing up. With the influx of people from out of state who have no house to sell to replenish supply, inventory levels are at an all time low. There are way more buyers in the market than there are sellers and the only thing left for buyers to do to be successful is offer more money. Appraisals are starting to catch up, so buyers offering appraisal waivers aren’t having to come to the table with as much money as they did in previous months. But, they are still putting more down than they otherwise would have, which means they are buying a less expensive house to make up the difference or are blowing through more of their savings than they’d planned. If you’re thinking of buying, find an agent who knows the market and can help you be successful, but also smart, in a market like this. Interest rates are still low, which is helping affordability. Hopefully we will see a bit of a slow down in the frenzy as spring hits and we see more inventory. But, I don’t see prices going down any time soon. If you’re looking to get into the market, it seems the best strategy is to jump in as soon as you can. Those who waited it out last year are now paying 30-40% more. Though I don’t think we’ll see jumps this high next year, my prediction is prices will still be going up.
What does this mean to sellers? With inventory at 1/2 month, we are in an extreme seller’s market. Buyers are offering appraisal waivers, high option fees and earnest money, minimal contingencies and sometimes 50% above list price (or more). It is not uncommon to have 75 offers on a house. Sellers can basically have their pick of several very enticing offers. If you have a house to sell, you might consider doing it now while buyers are motivated and ready to open up their checkbooks, especially if you aren’t going to need to buy a house. If interest rates rise or we see a drop off in demand, we might lose some of the edge a seller has. If you have to find another house, be prepared to be in temporary housing as you might not get the first home you make an offer on.
62% Decrease in Time to Sell Home in Austin
In June 2021, it took only 11 days to sell a home in Austin, on average, compared to 28 days in June 2020, marking a 62% (17 day) decrease in year over year numbers. And, the best homes are selling even faster, so buyers really have no time to think about making an offer. The median time to sell a home in Austin was only 5 days, which is more representative of how quickly the market is moving.
Number of Homes Taken Off the Market Saw a 16% Decrease
In June 2021, there were 165 homes taken off the market compared to 196 in June 2020. This marked a 16% (31 home) decrease in year over year numbers.
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 2% Decrease
Austin saw a 2% decrease in the number of homes sold comparing June 2020 to June 2021. In June 2021, we saw 1,181 homes sell in Austin compared to 1,210 in June 2020 marking a 2% (29 home) decrease in year over year numbers. With supply down and demand up, we would have had more sales if we had more inventory on the market.
44% Decrease in Austin Housing Inventory
In June 2021, we saw 0.6 months of inventory on the market, compared to 1.1 months of inventory in June 2020, showing a 44% (0.5 month) decrease in year over year numbers. With inventory levels at 1/2 month, we are in the most extreme seller’s market territory. I have not seen inventory lower since I have been monitoring the market (11 years). With so little inventory, buyers are forced to be less picky and expand their search parameters.
Austin Homes Under Contract Saw an 11% Decrease
In June 2021, 1,258 homes went pending (under contract) in Austin compared to 1,420 in June 2020, marking an 11% (162 home) decrease in year over year numbers. With fewer homes for sale, there is less for buyers to buy. When we see more inventory come online, we’ll see more sales.
31% Decrease in Number of Homes on the Market
In June 2021, we had 2,216 homes for sale in Austin, compared to 3,227 in June 2020, showing a 31% (1,011 home) decrease in year over year numbers. We are seeing fewer sellers list their homes for sale. Combine that with out of state buyers moving to Austin and it’s no wonder we have extreme inventory shortages.
22% Increase in Number of Homes Listed for Sale
In June 2021, we saw 1,601 homes introduced to the market compared to 1,313 in June 2020, marking a 22% (288 home) increase in year over year numbers. Though we are seeing more sellers than we saw last year, it still isn’t enough to meet the demand.
Supply Down 31% and Demand Down 2%
This month we saw a 31% decrease in supply (number of properties for sale) and a 2% decrease in demand (number of sold properties). With significantly less supply, we are still seeing inventory shortages even though we have slightly less demand. But, I believe this demand decrease is simply because there is nothing for buyers to buy. There is not less demand, just fewer houses for buyers to buy and they are simply waiting until something more suitable is listed.
Median for Sale Up 17% vs Median Sold Price Up 43%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 14% increase in the median for sale price and a 43% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
June 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 June 2021 Austin home sales below. The most expensive home that sold in June 2021 sold for $6,900,000 and the least expensive home sold for $235,000. Homes ranged in size from 504 sqft – 11,926 sqft with an average size of 2,242 sqft. The average price per square foot for a home that sold in Austin in June 2021 was $373.27 with the lowest being $124.14/sqft and the highest being $1,920.06/sqft. It took, on average, 9 days to sell a home in Austin and sellers received, on average, 109.95% 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||June 2021|
|Property Type||Single Family Homes||Number Sold||1,183|
|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 at just about 2 weeks, which indicates an extreme sellers market. Though demand is down 2%, supply is down 31% and there is very little new inventory coming online from builders. Buyers are feeling the pinch, big time. There is fierce competition on nearly every single home listed, no matter where it is and what condition it is in. In fact, even homes that are in poor shape are getting far above list price in a lot of cases. Homes taken off the market are down 16% which is causing record low inventory. New listings are up 22%, but it still isn’t enough to keep up with significant increases in demand. With inventory levels so low and the number of buyers 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 9 days, which is less than half the time it took last year. Median time to sell is 5 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 4 and 5%’s. The start of the year 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.