Expectations for Buyers and Sellers in 2021

Posted by Bartlett Real Estate Group on Tuesday, January 19th, 2021 at 8:22am.

The year is 2021 and the future looks bright! Especially as it relates to the Austin real estate market. Within the last 12 months, you likely know someone who moved to Austin, had a new neighbor move in, or moved to Austin yourself! Needless to say, Austin is trending right now. But what does that mean for the housing market? For one, more homes are being sold and at record breaking prices. In Travis and Williamson counties, year-over-year, single family homes sold increased 4.2% and the median price increased 9.2% to $362,000. What does this do to the inventory? With a drastic uptick in demand, we saw a 36% decrease in listing inventory. Pickings are slim here in Austin, and when you do find a home you love, odds are it’s going to sell fast!  Average days on the market went from 24 to 12 days. Less than 2 weeks and homes are going, going, gone! We are in a Classic Seller’s Market.


So where are these new residents coming from? Well, all over, but we’ve seen a lot of movement from high-taxed cities and states on the east and west coasts (ie. San Francisco, New York, Seattle). Austin is the ideal settlement for anyone wanting to escape high income taxes and seek new business opportunities. Many large tech companies and their suppliers are moving their operations to Central Texas: Apple, Google, Tesla, Charles Schwab, and Oracle to name just a few.  With the business movement comes the migration of families looking for single family homes. We’ve especially seen a rise in the demand for single family suburban and rural homes. If we look at this migration as an equation, we would see something like this… High demand=less inventory=higher sale prices. Again, all signs of a Classic Seller’s Market!


If you are entering the housing market as a buyer or seller in 2021 here are some things you can expect.  The market just isn’t the same as it was, even a couple of years ago. Your buying/selling experience even 2 years ago likely was vastly different than what we will expect from 20201…


Sellers
  • 2021 will be a ‘sellers market’ with inventory remaining low and demand very high
  • Home prices will see strong gains throughout 2021
  • You can expect multiple offers when your home is in great shape and priced right
  • Be prepared for offers that might come from Facetime/Virtual showings
  • Homes will be sold sight unseen


Buyers
  • Mortgage rates will remain low, in the mid to upper 2%
  • You may have less negotiating power because of high demand and lack of inventory
  • Be prepared to be flexible on your ‘wish list’ of features and expand your search to multiple areas
  • Get pre-approved as soon as possible to be able to react quickly when you find a home you love


2021 is going to be a very exciting time in the Austin housing market so be sure you know what to expect! If you want to talk further on these predictions, feel free to reach out. We are always happy to provide informational insight and guide you though this hot market. 

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