January and YTD MLS Statistics for Austin

[Dan Burstain]

Supply and Demand

Supply is down 74% from January 2020!!!!  That is 3,800 less properties on the market than last year.  STOP ----------- and let that sink in.   Jan 2020 = 5,251 inventory    Jan 2021 = 1,369 inventory 

Inventory is DOWN 7,900 Units from 10 years ago in 2010. Jan 2010 inventory = 9,261 units And in the last 10 years, Austin has added over 300,000 to its population.

Months of inventory is 0.4 months. (Months of the inventory measure supply and demand. The current inventory is divided by the average sales per month for the last 12 months to show months of inventory. Economists say that a balanced market should have about 6.5 months of inventory.)
The Months of Inventory has NEVER been this LOW in the LAST 30 years of MLS reporting !!!!!!
    
DEMAND - Total Sold Units = Total Closed Units Comparing January 2020 to January 2021 Sales are UP + 24 % @ 500 units !!!!!  There was NO slow down for the Holidays !!!!!!

PRICE

Price was Up + 9 % to $341,400 Median Price for all of 2020.  Price is UP = + 7 % in January 2021.

Economics 101 Supply and Demand -  If Supply is low and the Demand is high the Price will go UP.
We expect Sales to continue UP in 2021.  Why?  JOBS JOBS JOBS, and people moving to Austin !!!  

Now, does this mean Austin is too hot to buy in?  NO.  If you like Return on Investment, there is not a better city in the country to invest in.  There are even still positive cash flowing opportunities, especially with the 4-10 unit places.   There are also AirBnB, new build, condo's that will positive cash flow as well.  New build single family homes are hard to find these days for investors as builders have gone to selling only to primary home owners but there still our some opportunities in Kyle, San Marcos and few other suburbs as well as plenty of homes that are a year or two old.  Prices should continue to go up as they have done for 40 years in Austin so the time to buy is sooner than later.