A question that I’m hearing a lot is: When will the Austin Real Estate Market slow down? Most Realtors have been using words like “crazy”, “unprecedented”, “outrageous” to describe our market.
This week I closed at listing on mine that sold for 27% over the asking price. I also helped a buyer win in a multiple offer situation by offering 30% above the listed price. This is the new normal for the austin market. It’s unprecedented.
A weekly survey of over 250 top agents reveals that in the under $500,000 price range they expect a listing to attract over 20 offers and sell for more than 20% above asking. In they $500,000 to $1 Million price range they expect 10-20 offers and for it to sell 10% or more above asking.
Why has this happened?
When the Pandemic began over a year ago many sellers took their home off the market and choose to wait it out. They are still waiting. While listings slowed down buyer demand did not. In fact, buyer demand has accelerated since Austin is one of the most desirable places to live in the U.S.
Today we have 35% less listings in the Austin market. This imbalance has created an extreme seller’s market which has driven prices up %22 over the same week last year.
Spring has arrived and I’m beginning to see more listings go on the market because people like to move when school is out. But this momentary surge may be short lived.
Once the Pandemic is over will we have more inventory. Yes. Will it be enough to ease this low inventory problem. Not likely. The Austin market has experienced low inventory for several years. That’s not likely to change.
Buyers are wondering, should I buy or should I wait. It really doesn’t make any sense to wait. Prices are still going up and are expected to continue going up. Mortage rates too are rising.
When will the Austin real estate market slow down. Eventually, we will have more inventory and that will slow it down. But, don’t expect prices to go down.
