You're reading...
Market News and Trends

Five-year market comparison — supply-demand tension increases


I have told you for a long time that demand for housing in the Austin area has exceeded the supply of homes for sale. Courtesy of Independence Title, a few charts tell this story very well.

First, here is how unit sales in our 5-county metropolitan area look compared to the previous four years:

The previous peak for monthly sales was about 3,900 homes in May 2019. Through March 2020 sales were higher this year than the previous years, but at a somewhat reasonable growth pace. As coronavirus lockdowns began sales fell significantly, but market pressures overcame negatives beginning in May, and July sales peaked at more than 4,400! Even the dip in August left total sales at about 4,000 units. To some degree, this represents a delay in our traditional Spring/Summer sales, but match that extraordinary demand with the number of residential listings available:

While the number of homes sold increased all year, the number of homes available for sale began much lower than previous years and has dwindled since May, with the Months’ Supply metric falling below 1.5 for the first time. Note: that’s not just the urban core or the city of Austin. That chart shows supply for the metro area!

Predictably, strong demand with low supply led to price growth:

Yes, you saw that correctly … the median price of a home in the Austin metropolitan area was just below $360,000 in August and the average sale price was well above $450,000 across our 5-county region!

And look at the dollar volume of sales that resulted:

The total of home sales in July hit $2 billion for the first time, far above any time in the past!

I’ll have more to say on this using the metrics in my market dashboard, but these charts from Independence Title show clearly what an unprecedented environment we’re in in 2020! Stay safe, healthy, and prosperous. I’ll write more on this soon.

//———-//

Added later: Shock and Awe in Austin home sales

About Bill Morris, Realtor

More than thirty years of business experience (high tech, client service, business organization and start-up, including many years in real estate) tell me that service is the key to success and I look forward to serving you. I represent both buyers and sellers throughout the Austin metropolitan area, which means first-hand market knowledge is brought to bear on serving your needs: -- Seller Representation is a comprehensive process that begins with thorough market analysis and consultation, continues with properly staging the home to achieve the highest price possible in a reasonable time on market, a complete program of marketing and promotion, ongoing updates and communication, closing coordination, and follow-up throughout (and after) the sale. -- Buyer Representation is also full service: shopping, previewing, price and market consultation, contracting, negotiating, coordination of inspections, appraisals, repairs, and closing details, and follow-up beyond the closing of your purchase to ensure your lasting satisfaction. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That's why I constantly research the market and property values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.

Discussion

Trackbacks/Pingbacks

  1. Pingback: Shock and Awe in Austin home sales | Bill Morris on Austin Real Estate - September 28, 2020

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: