How Does Our 2019 Market Compare to Last Year?
The market stats are out for the month of February of this year—let’s take a look at a look at what’s going on in the market.
The first stat to look at in today’s market update for February 2019 concerns home prices. You’ll see this figure change from month to month due to normal fluctuations in the market caused by seasonal activity, but today we’re focused on a year-over-year comparison.
For single-family homes, condos, and townhouses in the city of Austin, the median home price rose by about 2% compared to February of last year, leaving us with a median of around $360,000.
The next stat is the number of active listings on the market. We currently have about 1,600 active listings on the market, which is roughly even with what we saw in January 2019.
Of those 1,600 listings, over 900 went under contract. That translates into about 1.6 months of inventory for the Austin area, meaning that, at that rate, we would sell all the available homes in the market in 1.6 months, assuming no new listings were added. Remember: a balanced market has six months of inventory, so we’re still in a seller’s market. Our 1.6-month inventory is only up by 0.1 months as compared to February of last year. This shows that the market is still very strong.
If you don’t speak the language of statistics, you’re probably wondering what all this means for you.
Well, if you’re thinking of selling this year, the market is incredibly strong. You haven’t yet missed your window of opportunity to get a great price for your home.
Buyers, on the other hand, are all wondering if they should wait for the market to shift, correct itself, or crash before they buy.
I don’t foresee a crash coming in the near future. The market is still very strong, and there are plenty of jobs on the horizon.
“I don’t foresee a crash coming in the near future. The market is still very strong, and there are plenty of jobs on the horizon.”
For example, Google has announced that it’s leased a 30-story building downtown that hasn’t even started construction yet. Facebook acquired the majority of another building in the Seaholm district; when I spoke to the developers, they say they weren’t expecting that building to be fully leased before it was even completed.
Facebook also announced that they’re leasing a 17-story at The Domain. Additionally, Apple, Oracle, and the numerous smaller businesses are continuing to bring jobs to Austin because it’s less expensive.
From my perspective, pricing is still fair here, and there are lots of deals to be had in our market. If you’re trying to time the market around a potential crash, think back to the Great Recession of 2008. Single-family home prices in Austin around that time dropped 4%; since then, they’ve increased by an average of 4% to 5%. By timing your actions around a 4% drop, you could potentially miss out on a 4% or 5% gain.
Now, I can’t guarantee that the market will continue to rise at the same rate each year as it has been, but I do think it will continue to appreciate. Even if we projected a conservative 3% rise, I still think you’re better off trying to make a move that’s right for your lifestyle right now, especially if you have a long-term outlook. If you plan to stay in a home for five to 10 years, you’re going to do just fine. The market in Austin will be higher in 10 years than it is today.
If you’re a buyer wondering which areas have the most growth potential, reach out to me. I’d be happy to have that conversation with you. If you’re thinking of selling and are wondering about what’s going on in your local market, remember that markets can differ wildly—the number of days it will take to sell a home can vary between 15 days and 85 days between markets (which still isn’t that long in the grand scheme of things.
For any questions you have or advice you need, you’re absolutely encouraged to reach out to me. I’d love to be your resource for your real estate needs.