Volume No. 22
Residential Properties in Austin $1 Million and above
Number of Luxury homes closed in 2020
2020 is undoubtably a year that many of us will not forget. While much of the world’s economies shut down, and many industries all but destroyed, real estate emerged as a big winner.
With an average of 36 homes over $1 million closing each week in Austin it’s very clear that the real estate market boomed in 2020. Much of what has been driving the market can be speculated and debated but some very clear answers are that inventory is, and was, at historic lows while demand surged. Part of the demand surge was a product of many people leaving cities like New York and San Francisco to more affordable metro areas such as Austin, Nashville, and Denver. Austin’s market offers relatively affordable housing options along with arguably better quality of life and overall cost of living that is far less than other major metro areas.
Also, Austin has long been a fun, funky city, that attracts an array of industry and talent. From government, to tech, Austin is a highly competitive city with multiple universities, tech hubs and the capital of the second largest state in the county.
To finish out the year I think it’s important to keep much of the data within context. For instance when you see the average days on market for all homes is 72 days, the median days was only 32. For single family homes the average days on market was 60 but the median was 25. It’s safe to say the market is booming and we are undoubtably at the top of the market. Where we go from here I don’t know. I’m very bullish on the coming year though, and I believe Austin will continue to grow and pricing will continue to increase. In fact, I believe Austin is only at the start in regards to it’s pricing. I will not be surprised to see Austin reaching levels that have only been seen in New York and San Francisco in the years to come.
If you were ever thinking of buying in Austin I would strongly urge you to do so NOW!