April 2021 Market Update

Hello and we hope that you’re doing well! The weather is absolutely amazing in Austin and we hope that you’re able to enjoy time outside.

Why does the real estate market continue to amaze? Jobs reports are the primary driver behind our huge market growth. ABJ reports that 12k+ (great) jobs are slated for Austin this year. These are only the jobs that have been reported so far and there’s sure to be more on the way for 2021.

It’s important to remember that the COVID pandemic started in March 2020. April 2020 closings were the first month to see closings affected by the pandemic. This is why we see a +32.8% increase in sold units in the Tri-County Area and a +46.07% increase in closed units in the city of Austin.

The pandemic didn’t meaningfully affect sold prices in 2020, which makes the appreciation numbers even more phenomenal. We’re seeing appreciation numbers in the ~40% range in both the Tri-County Area and in the city, as well as huge drops in days on market.

We’ve recently completed the May Market Expectations Survey that we send to a little more than 5000 of the highest producing agents in Austin. The full results are available here. The expectations survey show the slightest, earliest indication that the market is beginning to normalize. In the past, agents have expected 20+ offers and +20% or more over list price in almost every price point. Those expectations are lower, and in many price points, agents expect 1-5 competing offers.

What can buyers expect?Buyers shouldn’t expect lower prices, and they can likely expect higher prices in 3-6 months. However, it looks like the competition is starting to let up slightly and the experience buying a home will begin to become a little better.

What can sellers expect?It’s still a phenomenal market for sellers. Prices are still appreciating and there’s still tons of demand. Sellers should be very careful not to get over their skis with pricing, though. Buyers are very conditioned to see homes move quickly, but prices may slow down. Sellers who price beyond the most recent comps will likely find themselves in a bind – buyers asking “Why is this still on the market” after 1-2 weeks or asking “What’s wrong with this house?” if they see a price reduction.

As always, if there is anything that we can do to help you, please don’t hesitate to reach out by leaving a reply below!