February 2021 Market Update: Ice Storm After-Effects

The impact of the ice storm on central Texas was massive. We absolutely hope that you’re on your way back to normalcy. Austinites were greatly affected by the ice storm in some way (some large, some small) and everyone is now in some stage of rebuilding. We’re monitoring its effects on local real estate closely (more on that below.)

Greater Austin at a Glance:

• Total sales were down -17% YOY
• Avg Sold Price increased +29% YOY to $509,858
• We don’t yet know the impact of the ice storm on demand or inventory
• We expect a short period of disruption due to the ice storm, followed by the same trajectory we’ve seen this year

Confirmed statistics for February are in. It’s important to remember that these numbers are were impacted by the recent weather events.

Avg Sold $ increased by +29% while Median Sold $ increased by +23% (Year Over Year.) The average sold price in Austin is now $510K and the median price is now $395k. The sub-$300k price point looks to be a thing of the past and we think that could/will happen to the <$400k price point in late 2021 or early 2022.

How Will the Ice Storm Affect Austin Real Estate?

The X factor in 2021 has been the massive increase in demand. Anecdotally, it doesn’t look like the ice storm has/will negatively impact demand. We do think that it will negatively impact supply, at least to some degree. Many sellers were preparing to list somewhat earlier than in years past, and many of those sellers now have repairs to make before they can list, which will delay their listing dates. In worst case scenarios, some listings will be delayed for months, but most will be delayed for a few weeks to a month. Best case, we think that we’ll see a continuation of the market squeeze, and worst case, we could see the inventory problem worsen.

If you’re a buyer: Hang in there and strategize your purchase. Generally speaking, rushed decisions create more problems than measured decisions. We do see prices rising, but we also see more units hit the market in the next couple of months. While you might pay more for a home in a couple of months, that seems to be a good trade off for the certainty that you’ll gain from patience. (That said, if you see a great house now, then go for it!)

If you’re a seller: Time is on your side, but now is also a great time to list. If you’re ready to list now (or close to it), then list now. If you need some time, then take some time. The greatest likelihood is that the market will be as good in a few months as it is now, and there’s a good chance that prices will be slightly higher (though we’re still setting records now!)

It’s important to understand that all real estate is hyperlocal and every situation is different. If we can help anyone with your specific property or situation, please don’t hesitate to reach out by leaving a reply below!