High demand and low inventory
In the Austin housing market, buyers are driving prices up but overall sales down. The city of Austin ended the first half of 2020 with sales volume down 6.2 percent while the median price rose 9.7 percent. But after months of lower overall home sales and souring prices, Austin's residential real estate market appears to be rebounding with near-double-digit increases in home sales in June.
Looking at numbers for all five counties — Travis, Williamson, Hays, Bastrop, and Caldwell — ABOR says residential home sales increased 9.3 percent over June 2019.
What does this mean for buyers and seller?
- Obviously its a great time to sell with historically high prices and low inventory but remember selling into a high price market also means buying into it. So make sure you've researched where you're going before listing your home.
- Active buyers are more serious than ever before. People have spent the last 5 months realizing the inadequacies of their home. The buyers who are looking right now, in the middle of Covid-19, are very motivated to get a transaction done and take advantage of the historically low mortgage rates.
- While the median price of homes is way up, make sure not to list your home too high. Price so that the market chases you up, not down. If you price too high, buyers might not bid — and they may not even view.
- We don’t know what the future holds. Don’t take this buyer demand for granted. This unprecedented year is far from over — the election and ongoing pandemic could freeze real estate activity again, making it harder to sell afterward.
- Its likely prices will go up because of inflation. After an unprecedented government stimulus, expect inflation sooner or later. Investing in real estate is a great hedge against that.
- Interest rates are at historic lows — but don’t take that for granted. Requirements and rates will worsen at some point.
- There’s real value in comfort and security right now. What matters more to you: trying to time the bottom of the market, or finding the right home that’ll make you and your family feel comfortable and safe during this time?
- Try to avoid the “wait and see” mentality. Nobody buys at the bottom — and knows it. Focus on quality as your top priority.