Here’s what I think about our recent rise in home prices here in Austin.
Everybody loves a great headline, don’t they? That’s especially true when it comes to Austin real estate. Let me quickly go over what we’ve been seeing in the last few weeks.
The median price in January for the Austin/Round Rock MSA was $365,000. By February, that figure jumped to $395,000. By May, it was up to $465,000. That’s a whole $100,000 higher than it was just four months before!
Lately, I’ve been seeing headlines like “Austin Real Estate Market Slows?” Let’s take a deeper dive into what this actually means.
Over the last six weeks, we’ve certainly seen fewer offers coming in on properties. It wasn’t unusual to see 20+ offers early in the year. Over the past month and a half, some houses have only seen one to five offers. Just because we’re seeing fewer offers, however, doesn’t mean we’re seeing lower prices.
In fact, it makes sense that we’re not seeing many offers. As the COVID vaccine has rolled out, many homeowners are taking holidays now and making up for lost time by traveling during this holiday season. Buyers got fatigued from those first five months as well and are taking a break.
A lot of people have been asking if our home prices are sustainable. In a market like this, people are always asking this question. The answer is yes and no. Are they sustainable long-term? Of course they are. Look at Austin’s historical price maps to see what they’ve done in the past and where they’re going. Are they sustainable short-term? Maybe not, but it’s absolutely normal for prices to level off around the top.
If you have more questions or would like to discuss your personal situation, don’t hesitate to reach out to us via phone or email. I look forward to hearing from you soon.