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Market News and Trends

Inventory — Austin housing in 2020


As I have told you for many months, an ongoing — and worsening — shortage of homes for sale is driving prices higher, with very fast sales and competitive (multiple offer) purchases more and more common. Today’s market update from the Austin Board of REALTORS® shows the continuing trend clearly.

The number of monthly new listings in 2020 grew slightly in January and February, then declined from 2019 in March through June. The only meaningful year-over-year increases in new listings were in July and October (with November still incomplete). Look at the % Change column under Active Listings, though — down every month this year, with the decline in inventory accelerating for most of the year.

Here’s the reason for that trend:

The number of closed sales and newly accepted contracts were constrained in March, April, and May, but pay attention to what happened since June this year: significant growth, especially in the number of pending sales, which increased an average of 32% over 2019 every month even as listing inventory declined an average of 43% each month during the same period.

The underlying data show that these market conditions are not isolated. All five counties in our metro area are feeling the pressure, and it shows in resulting changes in sale prices reported in our MLS system:

Closed sales dipped in March, April, and May, in the early days of the pandemic, and we haven’t completely made up for those months. We saw declines in listings, sales, and pending sales in the week that included the Thanksgiving holiday, but the number of pending sales near the end of November is up from 2019. We can expect a pause around our December holidays, but there really is no sign of softening housing demand. Onward to 2021!

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.

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  1. Pingback: Market outlook – Austin area 2021 | Bill Morris on Austin Real Estate - December 4, 2020

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