Get a detailed break down of what's going on along with market specific data & my personal thoughts as a Realtor. Start by watching the video below.
My goal is to provide important & useful information to anyone that needs to buy or sell a home. I also make myself & my team available for all your questions & guidance. Simply call or text me @ 512-809-0091.
Right now the real estate market is crazy due to a lot of different factors going on at once. Should you buy a house now or wait? Click on the link to better understand what's going on in the Austin real estate market in 2021 & get help making an informed decision.
The data for single family homes in March 2021
The Austin real estate market in 2021 is fierce as prices continue to rise due to an overwhelming demand for homes in all the surround areas. Below is a screen shot of my analysis for all single family homes sold in the Austin area.
Keep in mind that the homes in this analysis contracted 30+ day prior so homes contracted in March 2021 will not close until at minimum sometime in April 2021. Stay tuned for future Austin real estate market updates as I'll be posting them every 1-2 months as things progress.
There are a lot of ways you can interpret the analysis above & here's a break down of the most important parts from my perspective.
- The average list price was $562,835
- The average closed was $606,874
- The average days on market was 16 days
- Homes closed on average 111.27% over list price
The data given above is a general overview of only single family homes that closed between 2/28/2021 through 3/30/2021. The areas included in the analysis were Austin, Buda, Cedar Park, Georgetown, Hutto, Leander, Liberty Hill, Manor, Round Rock & Kyle.
If you'd like a detailed analysis for a specific city, subdivision or address simple fill in your information above, below or call / text me @ 512-809-0091.
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What's the trend been for the Austin real estate market?
Over the past 10 years the trend has been on a strong upwards direction. There continues to be new & growing opportunities in Austin & the surrounding areas. Considering the recent announcements of businesses moving to the Austin area, there are more people than ever also wanting to buy a home in the Austin area.
Below is a chart of the average closed price for single family homes from January 2017 through February 2021.
These numbers are impressive, especially if you purchased a home in the last few years. To put things in perspective, homes being sold right now are closing over $100K over a year ago.
When you go back even further, the number get even worse or better depending on how you look at it & your current situation. Low income & first time home buyers are quickly being priced out of the market BUT, there are still opportunities on the outskirts of Austin.
What's driving this spike we're seeing? Continue reading below to get my thoughts on why we're experiencing this boom in the Austin real estate market.
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What's driving the Austin real estate market?
This is a great question that I get asked a lot. There are many different things at play here & I'll highlight what I think are the biggest factors.
Opportunities: As you're probably already aware, there has been some major announcements of very large companies moving to the Austin area. There are a few other major companies already here that are expanding operations.
When major companies decide to start or move operations in an area you can expect high income families to relocate. Typically, these families have already owned a home & will have a large amount of cash to put down on their next home. Also, the home prices here are still very reasonable when compared to the home prices from where these families are coming from.
You've also got to consider all of the medium & small sized companies that will also be making to move that give support to the large companies. Those small & medium sized companies will also have families relocating too.
Building Materials & Skilled Labor: There is a shortage going on with building materials & skilled labors which is causing new home prices to rise dramatically. Builders are also slowing down their pace because of this.
With fewer homes being built there are less options to build & inventory homes which puts more pressure on the resale (used home) market. When you have an overwhelming demand & a limited supply you'll end up where we're at right now. Multiple offers on the same home, in a matter of days & for more than asking price.
COVID: This has had a bigger impact than what most people thought, including myself. Now that people can work from home, those who have a nice home don't want or need to move because of their job. Those who don't own a home now want a nice home with an office when typically they would have been OK with renting.
Add those families that who now want to buy since they can work from home then subtract the families who don't want to sell because they've already got a really nice home & you'll get even more demand with less supply. You've also got to account for the families that don't want to sell because of not wanting people in their home due to COVID.
Are we headed towards a bubble?
From my perspective, no. We're not headed towards a bubble & It's my opinion that this is just the start of more permanent change that will takes at least until the end of 2021 to stabilize. This is just my opinion, I don't have a crystal ball & below are my reasons why.
Besides the simple supply & demand aspect you've got to look at the who is buying these homes. On average, these are 2nd & third time home buyers that have equity built up from their previous home. They're also moving from an area where home prices are much higher & right now interest rates are still low.
The last time there was a bubble in real estate it was due to lenders making loans out to borrowers that were not qualified according to today's standard. Mortgage lenders today are held to a much stricter guideline on who gets approved which means that the families that are financing today are highly qualified & have a larger down payment.
There are also MANY cash buyers out there too.
When I consider the supply / demand issue, building materials shortage, COVID & the large companies moving & expanding here in the area I see this trend to continue for at least until the end of 2021.
As we've seen over the past few years, things can change pretty quickly for the better or worse. I don't see anything that will slow down the momentum we have here in the Austin area but then again, I don't have a crystal ball (as mentioned earlier).
The last time there was a disruption in the real estate market back in 2008, the Austin real estate market did really well compared to other markets. I can provide data upon request.
What are your thoughts? Fill in your info above or below or just call / text me @ 512-809-0091. I'd be happy to learn more about your situation & what you want to accomplish.