Eleven Oaks Realty is proud to present their December 2020 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 23%
The biggest story this month: median home prices in Austin up …. again. I know you’re tired of hearing this, but prices in Austin are not going down. In fact, they continue to rise significantly month after month, despite world events. We’re seeing an influx of buyers from out of the area. And, since they have no supply to replace the inventory they are snatching up, buyers have no other choice but to pay more to be a successful home buyer. The median price of an Austin home in December 2019 was $415,000 compared to $510,000 in December 2020, up 23% ($95,000) 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 market isn’t slowing down and median prices only seem to be going up. Though some cities have seen a mass exodus, Austin has seen the opposite. Buyers from other, more restrictive states, are moving to Austin for a better quality of life. But, Austin wasn’t quite ready for this significant population boom, so our supply of housing is not meeting the demand. If we don’t get the demand/supply curve straightened out, we are going to continue to see price increases. Buyers from other, more expensive cities, are driving prices up. Those who were waiting for the market to slow down are quickly getting priced out. The only saving grace now is mortgage interest rates are low, so your payment won’t be as high as it would be if interest rates were higher. 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.
What does this mean to sellers? With inventory at 1/2 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 51%, while demand is up 9%. 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 26 days, down 26 days from last year, proving that serious buyers ready to act are still in the market. And, with median pice is up 23%, 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.
51% Decrease in Time to Sell Home in Austin
In December 2020, it took only 26 days to sell a home in Austin, on average, compared to 52 days in December 2019, marking a 51% (26 day) decrease in year over year numbers. Buyers are having to make quick decisions when they find a house that suits their needs.
Number of Homes Taken Off the Market Saw a 70% Decrease
In December 2020, there were 127 homes taken off the market compared to 419 in December 2019. This marked a 70% (292 home) decrease in year over year numbers. As buyers continue to flood the area and even seller’s who price aggressively are getting offers, few are having to take 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 9% Increase
Austin saw a 9% increase in the number of homes sold comparing December 2019 to December 2020. In December 2020, we saw 1,094 homes sell in Austin compared to 1,008 in December 2019 marking a 9% (86 home) increase in year over year numbers. We typically see a slow down at the end of the year. This year we saw an uptick in the number of homes that sold in the Austin market.
78% Decrease in Austin Housing Inventory
In December 2020, we saw 0.5 months of inventory on the market, compared to 2.4 months of inventory in December 2019, showing a 78% (1.9 month) decrease in year over year numbers. With inventory levels at less than 1 month, we are in extreme seller’s market territory. Inventory continues to decline as more buyers get into the market. It’s no wonder prices are increasing at a sharp rate. With so few choices, buyers have no other option other than to pay more.
Austin Homes Under Contract Saw an 18% Increase
In December 2020, 798 homes went pending (under contract) in Austin compared to 675 in December 2019, marking an 18% (123 home) increase in year over year numbers. Buyers don’t have the luxury of taking the holidays off this year, so we are seeing more activity during a typically slower month.
51% Decrease in Number of Homes on the Market
In December 2020, we had 1,346 homes for sale in Austin, compared to 2,723 in December 2019, showing a 51% (1,377 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.
21% Increase in Number of Homes Listed for Sale
In December 2020, we saw 652 homes introduced to the market compared to 540 in December 2019, marking a 21% (112 home) increase in year over year numbers. Sellers are seeing the increase in demand and getting their homes on the market quicker.
Supply Down 51% and Demand Up 9%
This month we saw a 51% decrease in supply (number of properties for sale) and a 9% 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.
Median for Sale Up 23% vs Median Sold Price Up 23%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 23% increase in the median for sale price and a 23% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
December 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 December 2020 Austin home sales below. The most expensive home that sold in December 2020 sold for $5,920,000 and the least expensive home sold for $97,000. Homes ranged in size from 576 sqft – 11,388 sqft with an average size of 2,264 sqft. The average price per square foot for a home that sold in Austin in December 2020 was $302.14 with the lowest being $89.81/sqft and the highest being $1,125.66/sqft. It took, on average, 25 days to sell a home in Austin and sellers received, on average, 100.18% of their original list prices.
| Beds | Baths | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM |
|---|---|---|---|---|---|---|---|---|---|---|
| Min | 1 | 1 | 576 | $115,000 | $104.17 | $97,000 | $89.81 | 74% | 55% | 0 |
| Max | 8 | 9 | 11,388 | $6,500,000 | $1,228.66 | $5,920,000 | $1,125.66 | 140% | 183% | 431 |
| Avg | 3 | 3 | 2,264 | $690,542 | $301.31 | $687,201 | $302.14 | 101.05% | 100.18% | 25 |
| Median | 3 | 3 | 1,992 | $499,900 | $256.865 | $510,000 | $261.78 | 100% | 100% | 6 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | Dec-20 |
| Property Type | Single Family Homes | Number Sold | 1,094 |
| 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 2 weeks, which indicates an extreme sellers market. Demand is up 9% while supply is down 51%, 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 70% and new listings are up 21%, 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 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 26 days, which is about half the time it took last year. 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 fall and beginning of winter 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.
Leave a Reply