E-RAE REALTY
  • HOME
  • BUY
  • SELL
  • INVEST
  • EXPLORE
  • BLOG
  • ABOUT
  • CONTACT
  • HOME
  • BUY
  • SELL
  • INVEST
  • EXPLORE
  • BLOG
  • ABOUT
  • CONTACT

Austin Real Estate Market Update - A Year in Review, and What to Expect for 2021

1/12/2021

1 Comment

 
Last year was a whirlwind for almost all aspects of our lives, and the real estate industry was no exception.  In the midst of a world-wide pandemic we saw something unusual occur in the Austin real estate market, there was no slow down.  Usually, the Austin market is fairly predictable.  Spring is the busy season.  This is when there are the most active buyers looking to purchase a home, and the largest percentage of home sellers choose to sell during the same time frame in order to capitalize on the highest sales price potential.  This year was a bit different.  Buyers didn’t stop at the end of July, and they are still out there buying anything they can get their hands on.  However, that isn’t much since sellers are not deciding to list their homes at pace with buyer demand.  At the time of writing this, there are only 71 active single-family home listings in Austin for under $500K!
Picture
Single Family Residential Sales in the City of Austin
A number of factors have contributed to the omni-present buyer demand in the Austin real estate market.  Buyers are taking advantage of record low interest rates.  People are looking for more space as the reality of working from home indefinitely sets in, and large corporations are moving here in droves.  All of these factors have resulted in a shockingly low level of homes for sale in Austin.  In December of 2019, there were 1,285 active single family home listings in Austin.  In December of 2020, there were only 521.  As with any case of supply and demand, this is driving prices through the roof.  Multiple offer situations that push the sales price well above the asking price are common occurrences at almost every price point in the Austin market.  If you are submitting an offer to purchase a home right now, it’s not unusual to provide an appraisal waiver addendum that declares you are willing to bring additional cash to the table if the home does not appraise. ​
Picture
Austin Single Family Home Median Sales Price by Month for 2020
What does this mean for you?

If you are considering buying a property in Austin right now, understand that the market is incredibly competitive.  You may not be able to get your dream home, or you may have to place offers on multiple properties before finally going under-contract on one.  There should be an increase in listings this spring that will alleviate the market to some extent, but I would also expect prices to rise throughout the typical spring selling season.  The bottom line is that if you are prepared to deal with the harsh conditions that the Austin market presents right now, you are likely better off buying now than waiting.

If you are thinking about selling your home, there has never been a better time.  You can expect to sell your home quickly and for an unprecedented price.  That being said, if you hold off until the spring, you may make a bit more.  Ultimately, it’s up to your unique situation to determine if now is the best time to sell for you.

If you have specific questions about what’s happening in the Austin market and your best course of action, feel free to contact me anytime!
1 Comment
Milwaukee Surveyors Group link
2/16/2022 12:42:52 am

However, if you wait until the spring, you may be able to earn a little more. Finally, it is up to your individual situation to determine whether now is the best time to sell for you.

Reply



Leave a Reply.

    BLOG

    Sharing Austin real estate updates, home owner tips, & more.

    Archives

    February 2023
    November 2022
    September 2022
    June 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    September 2021
    August 2021
    July 2021
    June 2021
    March 2021
    January 2021
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017

    Categories

    All
    ADUs
    Attractions & Events
    Buying A Home
    Condos
    Design
    Development
    Home Maintenance
    Investments
    Lake Austin
    Market Updates
    Neighborhoods
    Selling
    Short Term Rentals
    Westlake

All information provided is deemed reliable, but is not guaranteed and should be independently verified. 
​Please Note:  Texas law requires licensed agents to provide this Information About Brokerage Services

​
Licensed agents are also required to provide:  Texas Real Estate Commission Consumer Protection Notice