Eleven Oaks Realty is proud to present their February 2021 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 34%
The biggest story this month: median home prices in Austin up …. again. And this time, even more significantly. In the last few months have really seen a steep acceleration in activity and price increases. Appraisal waivers, minimal contingencies and contracts 30% or more above list price are now the norm. And, with home buyers migrating from other areas with no supply to put back in the market, we are in an extreme inventory shortage. The median price of an Austin home in February 2021 was $562,500 compared to $420,000 in February 2020, up 34% ($142,500) 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 is white hot and buyers are having a hard time finding a house. 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. But, because comps aren’t quite there yet, buyers are having to make up the difference from a low appraisal and contract price in cash. Thus, they are putting more down than they otherwise would be. Buyers who don’t have the cash to make up the difference on a low appraisal are struggling to find a seller that will take their offer. 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.
What does this mean to sellers? With inventory at less than 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 30% 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. 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 February 2021, it took only 14 days to sell a home in Austin, on average, compared to 37 days in February 2020, marking a 62% (23 day) decrease in year over year numbers. Buyers are really not even given ample time to think about the house before having to make a decision whether or not to make an offer. The median time to sell a home in Austin was only 4 days, which is more representative of how quickly the market is moving.
Number of Homes Taken Off the Market Saw a 63% Decrease
In February 2021, there were 49 homes taken off the market compared to 132 in February 2020. This marked a 63% (83 home) decrease in year over year numbers. I’m honestly surprised the number of homes taken off the market is even this high. From what I’m seeing, literally everything is getting multiple offers within a few days.
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 22% Decrease
Austin saw a 22% decrease in the number of homes sold comparing February 2020 to February 2021. In February 2021, we saw 645 homes sell in Austin compared to 829 in February 2020 marking a 22% (184 home) decrease in year over year numbers. Sellers who might normally list their homes for sale are staying put as they are wondering where they’ll go if they sell. They might make a mint on their house, but the thought of being a buyer in this market is making them stay put.
65% Decrease in Austin Housing Inventory
In February 2021, we saw 0.6 months of inventory on the market, compared to 1.6 months of inventory in February 2020, showing a 64% (1.1 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 a 28% Decrease
In February 2021, 664 homes went pending (under contract) in Austin compared to 919 in February 2020, marking a 28% (255 home) decrease in year over year numbers. Again, we would have seen more under contract if we had more supply. The only thing that’s holding back sales is not enough inventory in the market to meet current demand.
57% Decrease in Number of Homes on the Market
In February 2021, we had 1,099 homes for sale in Austin, compared to 2,566 in February 2020, showing a 57% (1,467 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.
33% Decrease in Number of Homes Listed for Sale
In February 2021, we saw 705 homes introduced to the market compared to 1,046 in February 2020, marking a 33% (341 home) decrease in year over year numbers. Spring is starting off much slower in terms of inventory this year. It will be interesting to see if sellers decide to capitalize on this market or if they decide to remain put for fear they will have no place to go once they sell.
Supply Down 57% and Demand Down 22%
This month we saw a 57% decrease in supply (number of properties for sale) and a 22% decrease in demand (number of sold properties). Though it seems we have a decrease in demand, this is really misleading actually. With more inventory, we would have had way more sales and thus, more demand. But, since we are inventory starved, we have a lot of pent up demand that doesn’t show in this data.
Median for Sale Up 14% vs Median Sold Price Up 34%
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 34% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
February 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 February 2021 Austin home sales below. The most expensive home that sold in February 2021 sold for $8,584,500 and the least expensive home sold for $202,000. Homes ranged in size from 672 sqft – 12,738 sqft with an average size of 2,230 sqft. The average price per square foot for a home that sold in Austin in February 2021 was $332.36 with the lowest being $106.43/sqft and the highest being $1,184.33/sqft. It took, on average, 19 days to sell a home in Austin and sellers received, on average, 107.25% of their original list prices.
| Beds | Baths | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM |
|---|---|---|---|---|---|---|---|---|---|---|
| Min | 1 | 1 | 672 | $204,500 | $111.23 | $202,000 | $106.43 | 86% | 72% | 0 |
| Max | 8 | 11 | 12,738 | $8,999,000 | $1,313.32 | $8,584,500 | $1,184.33 | 135% | 147% | 557 |
| Avg | 3 | 3 | 2,230 | $692,970 | $314.08 | $726,750 | $332.35 | 107.01% | 107.25% | 19 |
| Median | 3 | 3 | 1,989 | $525,000 | $272.59 | $562,500 | $292.51 | 105% | 106% | 4 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | Feb 2021 |
| Property Type | Single Family Homes | Number Sold | 645 |
| 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. Though demand is down 22%, it’s only because there is not enough inventory as supply is down 57%. Buyers are feeling the pinch, big time. There is competition on nearly every single home listed, no matter where it is and what condition it is in. Homes taken off the market are down 63% and new listings are down 33% which is causing record low inventory. 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 14 days, which is less than half the time it took last year. Median time to sell is 4 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 better than it has been despite rising prices. Though we are seeing multiple offers, overbids and lines to get into properties, payments are still lower than they were a few years ago. 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.
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