Austin Market Report - July 2021

[David Ivy]

The July 2021 Austin market numbers are out from the Austin Board of Realtors. While closed sales were down from their July 2020 high, the familiar story of sky-high demand, low inventory, and rising prices continues. It’s remarkable that the Austin metro’s pricing is nearly 40% higher than it was last year:

Despite the incredible YoY increase in prices, the decline in closed and pending sales compared to this time last year suggest, in light of the previous month’s numbers, that the market has found a stabilization point and may be reverting to its more predictable seasonal behavior. The Austin market remains an extreme sellers market throughout the year. However, it usually slows during the mid-summer through the beginning of the school year, with an uptick after Labor Day. The holidays just before Thanksgiving until New Year see the market mostly dormant until it roars back in mid-Feb/March.

If you’re a buyer, especially one who gave up in frustration earlier in the year, I suggest getting back out there to see for yourself how the market has changed. You can still expect to face strong competition and some multiple offer situations. However, you will likely discover that you can make competitive offers with less aggressive terms than before and have more confidence in reading the recent sales comparables.

If you’re a seller, it’s probably now unrealistic to expect a line down your driveway and offers 20-30% over your asking price. However, the median sales price in the Austin metro is now 30-40% higher than last year. These prices appear to be the “new normal” and will very likely continue higher, albeit in a much more “orderly” fashion. It remains an extreme sellers market in the Austin metro. Attractive properties that are well-marketed and appropriately priced will still generate multiple offers and receive favorable contract terms.

Overall, I don’t think we’re back to “normal” yet for Austin. Buyers rushed the Austin market in an absolute frenzy starting in late summer/early fall last year. Now, it appears buyers have abnormally swung the other direction this summer as they became re-engaged with their former lives in what, at the time, appeared to be a post-pandemic environment. The September and October numbers will be important indicators for the state of the Austin market and how it will look going forward.