Forecasts for the Austin, Texas real estate market in 2021 suggest home prices in the capital city will continue rising for the foreseeable future.
And that’s not surprising, when you consider that (A) inventory remains very low and (B) the population keeps growing. Within the Austin housing market, both sides of the supply-and-demand picture are putting upward pressure on prices.
Here are the latest trends, conditions and predictions for the real estate market in Austin, Texas, extending into 2021.
Austin Home Prices and Sales Rose During 2020
The current year, 2020, has been a big one for the Austin real estate scene. If you were to look at home-sales activity and price growth in this metro area — and nothing else — you wouldn’t even know there was a public health crisis dragging on.
According to the latest data from the Austin Board of REALTORS© (ABoR), the median sale price for homes within the Austin-Round Rock metropolitan statistical area rose by double digits over the past year or so.
To quote ABoR’s October 2020 housing market report:
“In addition to a third-consecutive month of double-digit home sales growth, median sales price increased 13.2% to $365,000, an all-time record … Homes spent an average of 35 days on market, 19 fewer days than in October 2019, and inventory fell 1.2 months to 1.1 months across the five-county area.”
There are several important points in the above quote:
- Home prices within the Austin metro area real estate market continue to climb, despite the economic downturn caused by the coronavirus pandemic.
- Home values in the area are higher now than they’ve ever been before. Affordability, on the other hand, continues to decline in the area.
- Inventory continues to hover at historically low levels, making things tougher on local home buyers.
All of these trends are noteworthy, especially when you consider the fact that we are still enduring a global pandemic and economic slowdown. The Austin housing market has showed surprising strength over the past 10 months or so, as have many cities across the U.S.
A Positive Forecast for the Austin Housing Market
A recent prediction from the research team at Zillow suggests that home prices in Austin will continue to climb throughout 2021, but possibly at a slower pace.
According to the real estate data company, the median home value in the Texas capital rose by 11% over the past year or so, hitting an all-time high of $427,116 (as of November 2020). That’s based on their proprietary home price index, shown in the chart below.
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