The Austin-area market continues to heat up, with a 2% increase in median single-family home prices. Despite the boom in new construction supply, it remains a clear seller’s market, with just 2.7 months of inventory. A balanced market is considered 6.5 months of inventory. New listings and active listings are down while the number of pending sales is up 19% and the number of single-family homes sold is up 6% year-over-year. The total dollar volume of sold properties is up 8%. The market projections continue to remain sunny, with Austin clinching the top city in the United States for overall real estate prospects for 2020 by Urban Land Institute.
Let’s dig deeper into months of inventory. It is a real estate indicator that measures how long all of the houses currently on the market would last assuming no new homes were listed. It bases the rate of homes sold on the previous 12-month average and does not factor in seasonality. If months of inventory is lower than 6.5 months, the market is a seller’s market.
Only 2.7 months of inventory indicates a strong seller’s market. This typically means that sellers have the upper hand because there are more buyers than sellers. Desirable properties may receive multiple offers and often sell quickly. If you are a seller, it is an excellent time to list your home. Buyers can navigate seller’s markets with an experienced Realtor who can help them put together a strong offer and even find off-market homes.