Eleven Oaks Realty is proud to present their October 2021 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 20%
The biggest story this month: median home prices in Austin up, as they have been for months. Given we haven’t seen prices go down, even when number of sales goes down, I don’t think we can expect that to happen any time soon. There is more demand than supply, and buyers are having to pay what sellers are asking, and sometimes more, to secure a house. The median price of an Austin home in October 2020 was $492,000 compared to $592,000 in October 2021, up 20% ($100,000) 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 at another city to buy. They are leveling off a bit from the peak spring/summer months, but that is a trend we see nearly every year. And, we’ll expect to see prices increase as we get in February/March of next year when more buyers start their searches. 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 at 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.
8% Decrease in Time to Sell Home in Austin
In October 2021, it took only 23 days to sell a home in Austin, on average, compared to 25 days in October 2020, marking an 8% (2 day) decrease in year over year numbers. And, this number is really misleading since we have really two groups of homes. Homes that sell within a few days and others that take much longer to sell. 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 14% Increase
In October 2021, there were 179 homes taken off the market compared to 157 in October 2020. This marked a 14% (22 home) increase in year over year numbers. This increase is likely due to some sellers who set unrealistic list prices and when they don’t get them, they simply take their homes off the market. This time of year, they say they’ll wait until spring when they know they can get their price. Whether they can or not is yet to be determined. But, they would rather wait than reduce their price now.
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% Decrease
Austin saw a 27% decrease in the number of homes sold comparing October 2020 to October 2021. In October 2021, we saw 869 homes sell in Austin compared to 1,193 in October 2020 marking a 27% (324 home) decrease in year over year numbers. On the surface, this looks like a reduction in buyer demand. However, when you go and look at houses and see the lines and the multiple offers, you know it is more to do with less supply than less demand. If there were more choices, we’d have more buyers buying houses.
13% Increase in Austin Housing Inventory
In October 2021, we saw 1.0 month of inventory on the market, compared to 0.9 months of inventory in October 2020, showing a 13% (0.1 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, 1.0 months of inventory is certainly not high, just a bit higher than at this time last year.
Austin Homes Under Contract Saw a 1% Decrease
In October 2021, 1,131 homes went pending (under contract) in Austin compared to 1,146 in October 2020, marking a 1% (15 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.
5% Increase in Number of Homes on the Market
In October 2021, we had 2,428 homes for sale in Austin, compared to 2,302 in October 2020, showing a 5% (126 home) increase in year over year numbers. Last year we were deeper into the pandemic, which was causes sellers to pause their home selling plans. We are starting to get back to normal, at least from a real estate standpoint, and we are starting to see more sellers list their homes. Still not nearly enough to meet buyer demand, but we are seeing more listings.
7% Decrease in Number of Homes Listed for Sale
In October 2021, we saw 1,127 homes introduced to the market compared to 1,208 in October 2020, marking a 7% (81 home) decrease in year over year numbers. With prices going up and multiple offers on nearly every house, sellers who need to buy another house are reluctant to put their homes on the market for fear they’ll have no place to go. We won’t see this ease up until we see builders catch up with new demand to ease some of the pressure on the resale market.
Supply Up 5% and Demand Down 27%
This month we saw a 5% increase in supply (number of properties for sale) and a 27% 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 9% vs Median Sold Price Up 20%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 9% increase in the median for sale price and a 20% 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
October 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 October 2021 Austin home sales below. The most expensive home that sold in October 2021 sold for $7,800,000 and the least expensive home sold for $140,000. Homes ranged in size from 480 sqft – 7,845 sqft with an average size of 2,084 sqft. The average price per square foot for a home that sold in Austin in October 2021 was $358.56 with the lowest being $141.70/sqft and the highest being $1,805.56/sqft. It took, on average, 19 days to sell a home in Austin and sellers received, on average, 100.51% 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||October 2021|
|Property Type||Single Family Homes||Number Sold||869|
|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 20% 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 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.