As is the case with almost every aspect of our lives, there is a lot of uncertainty around how the coronavirus will affect the local housing market. Over the past few years, the Austin housing market has been increasingly competitive with the average home sales price rising year over year. Will Covid-19 slow sales or will buyers jump to take advantage of historically low interest rates?
The Impact of Covid-19 on Austin Home Buyers
The coronavirus has began to change our daily lives. Many are practicing social distancing, self-quarantining, and generally spending less time outside of the home. Going into someone else’s home is just one more opportunity to come in contact with germs, and surely there are quite a few buyers foregoing showings at the present moment. According to a survey performed by the National Association of REALTORs last week, only 16% of real estate agents said the coronavirus has affected buyer interest. However, I would have said the same thing last Monday when surveyed. It wasn’t until last Tuesday, that I heard from my first buyer client that they would be holding off on their home search until the Covid-19 scare blows over.
Will the Coronavirus Reduce the Number of Homes on the Market?
Sellers may also have fears about letting strangers into their homes. In Austin, we have had incredibly low inventory for far too long. There are simply not enough homes for sale to accommodate the ever growing buyer interest. Will sellers decide not to list their home due to fears of contamination? It’s quite probable, and this will only exacerbate the low inventory issue. Builders too are seeing the affects of the coronavirus. Nearly 1/3 of our raw building materials come from China, and this doesn’t even account for assembled goods such as appliances and fixtures. First hand, I’ve already witnessed supply chain issues, with new home buyer clients unable to get tile they had originally ordered since it was produced in China. If builders are delayed due to material delays, and sellers are reluctant to list, it won’t matter that interest rates are at historically low levels. Buyers won’t have any homes to buy.
How Will the Corona Virus Impact the Seasonality of the Austin Real Estate Market
We are just entering what is typically the spring selling season in the Austin area. Usually, this is when the largest percentage of sellers list their home, and the majority of buyers purchase. Home sale prices are usually the highest in the coming months as buyers compete with one another to move while school is out of session. However, it’s unknown how the coronavirus will affect the seasonality of the Austin market. Will it delay the spring selling season? Will it have no affect at all? Or, will it cause a mass recession leaving buyers unmotivated to make moves. After all, what good is an incredibly low interest rate if you are not sure you will have a job next month.
What Can We Learn From the Past?
In the past, Austin has been largely spared from housing market collapses. In 2009, the median sales price dropped from $192,000 in 2008 to $190,000. It increased to $195,000 in 2010 and stayed the same for 2011. Since then, the median sales price has been steadily increasing. We wrapped up 2019 with a median sales prices of $315,000 for the greater Austin area. While the median sales price changes from 2008-2011 were not too significant, the number of sales dropped significantly beginning in 2007. Between 2007 to 2008, the number of home sales in the greater Austin area dropped by about five thousand, and the number of home sales continued to slowly decline each year until 2011. In 2009, the Austin real estate market saw its lowest number of annual sales with only 18,632 sales occurring. In comparison, 35,437 homes sold in the greater Austin area last year.
It’s not unrealistic to think that the coronavirus may slow Austin area home sales yet again. Furthermore, if there is one area that may be more affected than others, I suspect it will be the luxury home market. After the housing market crash, we saw these types of homes suffer the most.
Overall, it’s still too early to say how the coronavirus will affect the Austin market. If you have questions about how it may affect your specific real estate goals, give me a call. I’m happy to share my opinions with you.
The temperature is not the only thing heating up in Austin this time of year; the central Texas real estate market is HOT, HOT, HOT! Last week, the Austin Board of REALTORS released the July 2019 home sales report; it revealed that the median sales price increased year over year for single family homes located within the city limits and those in the greater Austin area. Additionally, Austin area home sales set an all time high for any July on record with total sales topping out at 3,439 for the entire greater Austin area.
Within the greater Austin area, the median sales price for single family homes increased 3% from last year to $325,000. Simultaneously, the sales dollar volume increased 15.4% to $1,407,009,110.
Within the city limits, a shortage of supply is keeping the total number of homes sold lower. Last month, 943 homes sold in the city limits down just slightly from 952 homes sold in July of 2018. Additionally, those homes that are on the market are staying there for less time. The average days on market for homes in the city limits dropped to 29 days last month. Within the city limits, the median sales price increased 3% year over year to $410,000.
However, this figure is still lower than the median sales price for homes that sold within the city limits last month. In June, the median sales price of single family homes within the city of Austin was $420,000. This is not surprising, as historically you tend to see highest sales prices in the Austin area throughout the spring and early summer months.
All in all these stats show that the Austin market is still going strong. As long as there are homes to buy, people will keep buying them, and they are willing to pay a premium in order to do so!
Recently, I was showing a client of mine some condos in central Austin. She was trying to decide between a condo in Clarksville and a condo in 78704, and she asked which area appreciated better. From the seat of my pants, I speculated that 78704 condos have appreciated more than Clarksville condos. This hypothesis was based on the fact that Clarksville condos have been pricier for some time, so it seemed logical that the 78704 condos would have appreciated more in the past ten years or so.
When I got home, I ran some numbers. I looked at the median sales price annually from 2009-2019 for condos in the following central Austin zip codes: 78701, 78702, 78703, 78704, 78705, and 78751. I then calculated the appreciation rate for condos in each zip code between 2009-2018. The median sales price for 2019 would not have provided accurate data since we are only a few months in to 2019.
As I suspected, condos in 78704 appreciated more than condos in Clarksville (78703). In fact, condos in 78704 had the highest appreciation rate out of all of the central Austin zip codes. In 2008, the median sales price for condos in Austin’s 78704 zip code was just over $169k. In 2018, that number shot up to $376K. In 78704, we are seeing a lot of condo regimes. A condo regime happens when a developer takes a traditional single family lot and constructs two new units on the lot. Often times these units are not attached and live like single family homes. However, they are technically condos and sell for much more than a traditional condo. Thus, I am not surprised by this appreciation rate.
In 78703, which consists of Tarrytown, Clarksville, and Old West Austin the median sales price for condos in 2009 was a little over $347K, compared to $460K in 2018. Out of all the central Austin zip codes I looked at, 78703 had the lowest condo appreciation rate at just over 32%.
As would be expected, condos in East Austin appreciated well over the last 9 years. In 78702, the median sales price for condos in 2009 was about $168K. Last year, that figure jumped to 325K.
Condos in downtown Austin appreciated about 78% between 2009-2018. In comparison, condos in 78705, which encompasses the UT campus area, appreciated about 57%.
Overall, condos in central Austin have appreciated well. If you talk to anyone who purchased a condo about 10 years ago, they will usually tell you one of two things, “I wish I bought more” or “I wish I hadn’t sold 5 years ago, even though I thought I was making a killing when I sold.”
If you are considering buying a condo in central Austin or are curious how much your condo is worth, contact me today.
On the national scale, there are rumblings of a market shift in the real estate market. However, at the local level, real estate sales remain strong. According to Steve Crorey, President of the Austin Board of REALTORS, "Sales are up 3.3 percent year-to-date for 2018”. The Austin-Round Rock MSA experienced growth in both the number of homes sold and the median sales price while the City of Austin revealed fewer sales, but a higher median price. As prices within the city limits continue to increase, buyers are moving farther out in search of an affordable home.
In the Austin-Round Rock MSA, the sales volume increased slightly to 2,201 sales last month while the median home price increased to $301,391. As would be expected, there was an increase in all stages of listings year over year: new listings (+1.7%), active listings (+11.5%) and pending sales (+2.5%).
Within the City of Austin, median sales price rose 5% to $374,900. At the same time, November home sales in the City of Austin decreased from 653 sales in November 2017 to 618 sales in November 2018. The total sales dollar volume for the City of Austin remained the same at $288,251,771.
In my opinion, the strength of the Austin real estate market is directly correlated to the health of the Austin job market. The local unemployment rate is extremely low, 2.6%, and major businesses continue to move here or expand operations in Austin such as Apple announced this week.
Furthermore, Austin will also always be home to both the University of Texas and government employers. There are over 50,000 students enrolled in undergrad or graduate programs at UT, and the vast majority of these students stick around and call Austin home. With Austin being the state capitol of Texas, it is also home to a number of other government agencies such as the Texas Comptroller of Public Accounts; Texas Department of Transportation; Texas Department of Public Safety; Texas Water Development Board, and the Texas Department of Health. The bottom line is that Austin has a healthy local economy with a variety of high tech businesses built upon a backbone of government and education. As long as there are jobs, the real estate market will stay strong.
If you’re interested in moving to Austin, contact me today for more information about how you can call this wonderful city home.
The Austin Board of REALTORS® just released the September 2018 Austin Market Report. According to the report, September data shows a stall in home sales growth. Regardless, median home sales prices continue to rise for both the City of Austin and the Greater Austin area.
The home sales volume stall that the board report magnifies as its report title is quite slight. Compared to September 2017, there were 22 fewer single family home sales in the Austin – Round Rock MSA this past month. Within the City of Austin, home sales decreased from 708 last year to 702 home sales in September of 2018. This is hardly a drastic change in the market. According to Lawrence Yun, chief economist and senior vice president of research at the National Association of REALTORS®, the flat sales growth in the Austin area could be due to rising interest rates. This is a valid argument; interest rates have rose about three quarters of a percent since last year. However, there are many other factors that could be at play here, such as the lack of housing available and the increasing rise in the median sales price.
In the greater Austin Area, the median home sales price increased to $302,250 last month. This is almost eleven grand more than the median home sales price of September 2017. Within the city limits, the median sales home price increased to $365,000. The combination of increased prices and higher interest rates leads to less purchasing power for home buyers.
The average days on market (ADOM) for homes in the greater Austin area and homes within the city limits has not changed much since last year. Homes within the City of Austin spent a few less days on the market this year compared to last year. This month, City of Austin homes had an ADOM of 38 compared to 42 days last September. In the greater Austin Area, the ADOM was 53 days. The exact same figure as September of 2017.
If you’re interested in learning more about the exact market conditions in your neighborhood, contact me today. I’d be happy to prepare a specified report for your area.
The most recent market report for Austin area home sales was just released by the Austin Board of Realtors. May’s market report showed continuing trends of rising prices, low supply and strong demand in the Austin market. The median price for homes within the city limits rose to the greatest price ever of $389,000. Outside the city limits, prices continue to rise as well. In the greater Austin area, the median sales price increases 5% year over year to $325,000 last month.
Rising home prices in the greater Austin area continues to make it challenging for many first-time home buyers to purchase a residence in the Austin area. Home prices are increasing at a rate far greater than median family income. Data from the Department of Housing and Urban Development (HUD) shows the Austin-Round Rock median family income increased 17.5 percent from 2013-2018. Over the same time frame, median home prices in the Austin-Round Rock MSA increased 42.5 percent.
With the steady demand for Austin housing, builders struggle to keep up with the steady influx of buyers. Antiquated building restrictions, and an inundated city staff further delay the creation of more housing. As we have seen in past months, buyers are flocking to the suburbs in search of more affordable housing options. In order to encourage the growth of affordable housing within the city limits, there must be changes made to the city’s land code. Conflicts over the City of Austin’s CodeNEXT plan are further delaying the ability for developers and builders to take action towards the City of Austin’s housing crisis.
If you’re interested in learning more about what’s happening in your specific local market, contact me today. I’d be happy to provide a detailed market report for your specific zip code.
The Austin Real Estate Market is not showing any signs of slowing down. Yesterday, the Austin Board of REALTORS released the March 2018 market reports for the Austin Area. Across the board, we are seeing median price increases and an increase in the volume of single-family residential sales. With new listings going under contract quite quickly, we are also seeing an increase in the number of pending sales.
In the greater Austin area which encompasses Austin and suburbs such as Round Rock, Georgetown, Cedar Park, Kyle, Buda, and Manor, known as the Austin-Round Rock MSA, the median sales price reached $305,233 last month. That figure is up 4% compared to March 2017’s Austin area median sales price. Even more remarkably, this area saw a total of 2,714 single family sales last month; this is more sales than any previous March.
Within the Austin-Round Rock MSA, the average days on market (ADOM) increased slightly from last year. Homes stayed on the market approximately 3 days longer with an ADOM of 61 days last month. Homes prices under $250K in the greater Austin area averaged far fewer days on market.
In the City of Austin, single family homes spent on average 46 days on market last month. This is about 5 days less than the ADOM in March of 2017. The median sales price within the City of Austin increased only slightly compared to the median sales price of last March. Last month, the median sales price for single family homes in the Austin city limits was $370K.
Inventory continues to be a problem across the board as well. A balanced market consists of 6.5 months of available homes. Within the City of Austin, there is about 1.5 months of inventory; the greater Austin area has about 2.2 months. As buyers continue to seek out more affordable areas to live, suburbs like Buda are facing a shortage in supply. Last month, there was 1.9 months of inventory in Buda. In comparison, in March of 2017, Buda had 2.4 months of inventory. As inventory decreases, buyers are moving farther out to suburbs like Kyle in order to find homes.
If you are interested in learning more about the market conditions in your Austin neighborhood, contact me today. I’d be happy to give you a detailed breakdown of the activity happening in your hood.
In 2004, the median home sales price in greater Austin for a single family home was $158,000. In comparison, the median home sales price in the greater Austin area in 2017 was $299,000. Overall, the median home sales price has increased almost every year in the past 14 years. In 2008-2009, the median sales price dropped 1.04%, and in 2010-2011, it remained the same at $195,000. This was during the largest housing market collapse in the US history. Austin was impacted very little in the grand scheme of things. On average, between 2004-2017 the median single family home sales price in the greater Austin area increased 5.09% annually.
I should mention that this data is all from single family home sales in the entire greater Austin area. If you are looking at home sales in only the city limits of Austin, you will see a slightly different but similar picture. In the City of Austin, the median home sales price has increased every year by at least 5% in every year except 2009 (when it dropped 3%) and 2011 when it only increased 1%. Overall, in the past 14 years, the median home price in the city of Austin has increased 6% each year on average.
So what does this data really mean?
The Austin real estate market is strong whether you are buying in the city limits or in the suburbs. While this data is from single-family home sales, similar trends are seen when looking at the data from condo, townhome, and attached ½ duplex sales. If you currently own a home in Austin, your home has most-likely appreciated nicely. If you’re curious what your home is worth now, click here for a free no-pressure home valuation. If you’re considering buying, your money today will likely go further than it will in the future, and look at those appreciation rates! Let your money start working for you rather than throwing it away renting. You can search all homes for sale in the greater Austin area here, or contact me today, and I can show you the best Austin properties for your needs.
All data provided was derived from the Austin Board of REALTORS MLS.
Austin Real Estate Market Update: Central Texas housing market closes 2017 with record-breaking sales
Well, December home sale statistics from the Austin Board of Realtors were just released, and sales are steady! In the Austin-Round Rock MSA, single-family home sales increased 13% to 2,653 home sales in December 2017, while median price rose 7% to $310,000 over the same time frame.
Within the city limits of Austin, there were 802 home sales last month with a median home price of $359,150. Within the City of Austin, the Average Days on Market or ADOM went up slightly to 54 days which is not unusual as the market tends to slow slightly around the holidays. Compared to City of Austin home sales in December of 2016, the total dollar volume of residential home sales in December increased 15% to $352 million.
There are just under one million residents in the City of Austin, while more than two million people reside in the greater Austin area. In fact, the Austin-Round Rock MSA is the 31st largest metropolitan area in the United States. In the Austin- Round Rock MSA there were 2,653 home sales in December of 2017 bringing the annual home sales total for the MSA to 30,059 sales, an all-time high.
If you’re interested in learning more about what’s happening in your specific neighborhood, contact me. I can provide you with a custom Austin real estate market update for your specific area.
The Austin Board of REALTORS just released their May market report, and the real estate market is strong as ever in the City of Austin! Houses within the city limits of Austin sold for a median price of $380,000 last month, representing a 9% increase compared to last May.
The May real estate market report also revealed increased inventory, although we are still far from a balanced market. Coupled with rising home prices, this recent surge in home sales activity made May 2017 the highest-grossing month for Central Texas real estate in the region’s history.
The May real estate report for home sales in the City of Austin also found that homes sold last month were on the market for an average of 34 days. In my opinion, this figure seems high, after all it is an average. When I am helping my clients buy or sell houses in the Austin area we continue to see frequent multiple offer situations. Similarly, houses flying off the market in less than a week is a common occurrence in the Austin real estate market.
If you’re interested in seeing a more specific report for your Austin neighborhood, contact me today. Is the Austin Board of REALTOR’s May Real Estate Report making you think about selling your Austin home? Visit my site for a quick home value estimate.
Erika Rae Albert
Sharing my Austin real estate updates, home owner tips, & more.