Amidst the chaos of the coronavirus pandemic and economic shutdowns, low-interest rates and a low housing supply contributed to this record-setting year.
Are you wondering what the Austin real estate market will look like in 2021? Are you shopping around for Austin real estate agent?
Let's take a look at everything you need to know about the future of Austin real estate agents.
Austin Home Sales and Prices Soard in 2020
2020 has been a big year for Austin real estate.
Over the past year or so, the median sale price within the Austin-Round Rock metropolitan area increased by double digits. In October 2020, the median sales price of homes in this area reached an all-time record of $365,000, an increase of 13.2%. Houses also sold 19 days faster, on average, than they did a year previously.
Despite the economic difficulties that have swept the nation as a result of the Covid-19 pandemic, housing prices in the Austin metro area continued to climb.
The area is becoming increasingly less affordable as the value of homes in this area are now higher than they've ever been.
On top of all of that, the inventory of homes is at historically low levels. This makes things even more difficult for local homebuyers.
The real estate market in Austin was found to be the number seven best real estate market in the country. Boise came in at number one, with Seattle, Frisco, Nashville, and Gilbert following behind. Out of the large cities in the United States, Austin's real estate market came in at number three.
Austin Real Estate 2021: Prices Will Continue to Climb
It is predicted that home prices in the Austin metro area will continue to rise through the year 2021. However, it is possible that prices will rise at a slower pace than they did this past year.
Over the past year, home values and Austin has gone up 11%. The research team at Zillow predicts that prices will rise another 8.8% in 2021.
Considering the imbalance between supply and demand in this area, it is reasonable to expect that home prices won't drop off anytime soon.
While this is great news for people selling their homes in Austin, it creates a competitive market for people looking to move locally within Austin. The shortage of homes and the rising prices makes buying a home in Austin more difficult for many people.
Population Growth in Austin: Well Above Average
One vital factor impacting the state of the Austin real estate market is the population growth of the area.
Between 2010 and 2019, the population of Austin grew 22%. To put this in perspective, this is more than three times the national average for the same time span.
There have been other cities in Texas that have experienced above-average growth. These include the Dallas-Fort Worth-Arlington area and the Houston-The Woodlands-Sugar Land area.
The population growth in Austin was already well underway before the pandemic hit.
Since the pandemic, even more newcomers have been showing up. According to a list compiled by CNBC, Austin came in at number one out of the cities that people are migrating to amidst the pandemic. The next most popular destinations are Phoenix, Nashville, Tampa, Jacksonville, and Charlotte. Dallas, Texas, came in a number seven.
Future of Austin Real Estate: A Continued Imbalance Between Supply and Demand
The population growth of Austin is continuing to increase at a time when there is historically low housing stock. This means that there is an imbalance between supply and demand. Basically, this imbalance could help protect Austin from negative real estate market trends that could occur in the next year.
This also means that the local housing market could recover faster than many other US cities once there is more stability in the economy.
2021 Austin Real Estate: Buying in this Market
The Austin real estate market is competitive for all of the previously mentioned reasons. However, there is an opportunity to still get a good deal on a home because of the currently low mortgage rates.
Interest rates are historically low and this has been one of the reasons that the real estate market has been booming this year. People are also attracted to the potential of refinancing their homes because of these all-time low mortgage interest rates.
2021 Austin Real Estate: Selling in this Market
It is certainly a good time to sell a house in the Austin area. There are many home buyers that are looking for homes and fewer than normal on the market. This means that your property will be more visible and there will be a stronger demand for it.
What Could Spoil these Positive Austin Real Estate Trends?
All in all, it looks like the housing market in the Austin area will continue to rise in terms of home prices in the next year. However, it is worth noting that there has been a rise in unemployment claims over the past couple of months due to the pandemic.
Austin is still likely in a better situation than other cities in the country, though. This is because the local economy was thriving prior to the crisis.
There is also a large presence of the tech industry in the city, and many of the jobs performed for those companies can be done remotely. This is a big factor in helping the city get through the current crisis without too much damage done.
Are You Looking for Austin Real Estate Agents?
Whether you are looking to buy or sell a home in Austin, our Austin real estate agents are here to serve you.
With a market this crazy, you'll want to find a real estate agent that can help you navigate the market. At Pauly Presley Realty, we're here to help!