Austin Real Estate Market
The Austin real estate market has been quite different during these last six weeks due to the COVID-19 pandemic. The Governor and municipalities issued stay in place orders, which are now being allowed to expire. Texas is now seeing movie theaters, malls, and restaurants re-open with 25% allowed capacity. Those of us with children have hopefully adapted to a home-school schedule that works for the family.
The market has also been adjusting. The normal amount of properties to go pending for a week is in the 800’s. The week before the pandemic we had 857 properties go pending. Once the stay at home orders hit, the number of pending properties per week decreased severally and we bottomed out during the week of April 6th. The market has since seen a steady increase in properties going pending and it has had a 79% increase since April 6th. Pending properties increased 10.9% over last week and the market is beginning to return to normal. Sold properties have also increased by 32.5 percent since last week
| Austin-Round Rock MSA | 03/09- 03/15 |
03/16- 03/22 |
03/23- 03/29 |
03/30- 04/05 |
04/06- 04/12 |
04/13- 04/19 |
04/20- 04/26 |
04/27- 05/03 |
% Change (WoW) |
| Active Listings | 4,500 | 5,381 | 5,490 | 5,727 | 5926 | 6054 | 5724 | 6270 | 9.5% |
| Pending Sales | 842 | 759 | 521 | 508 | 477 | 604 | 773 | 857 | 10.9% |
| Closed Sales | 627 | 457 | 475 | 513 | 346 | 460 | 382 | 506 | 32.5% |
Interest Rate Comparison
The real estate market in Austin has always been strong and even during the recession of 2008, we only saw a 3.6% price decrease while other areas of the country took more of a hit. Their are great opportunities for home ownership especially with interest rates so low. Currently interest rates are hovering around 3.0%. Let us take a look at a comparison of interest rates over the last three years. In this example We used a home that is priced at $350,000 and assumed that the buyer was putting 20% down. We compared the interest rate in May of 2018, May of 2019 and today. The difference in payment is $183 for the same home
| Mortgage Information | 05/04/18 | 05/10/19 | 05/01/2020 |
| Purchase Price | $350,000 | $350,000 | $350,000 |
| Down Payment Amount | $70,000 | $70,000 | $70,000 |
| Loan Amount | $280,000 | $280,000 | $280,000 |
| Annual Interest Rate | 4.625% | 4.125% | 3.500% |
| Term of Loan (in Years) | 30 | 30 | 30 |
| Monthly Payment (PI) | $1,440 | $1,357 | $1,257 |
If you or anyone you know need any resources, or is looking to buy, sell or lease, please feel free to reach out and we would be glad to assist.
Stay healthy!