Austin Hot or Not - Market Update February 2020
Updated: Mar 9, 2020
Active homes for sale: 1,107 (down -11.0% since last month, and -36.2% since last year )
Sold homes: 542 (down -44.6% since last month, and -10.1% since last year)
Median Price: $425,000 (up +1.98% since last month, and +18.1% since last year)
Active homes for sale: 116 (down -20.0% since last month, and -54.9% since last year)
Sold homes: 122 (down -38.1% since last month, and up +3.39% since last year)
Median Price: $375,000 (up +4.11% since last month, and +17.2% since last year)
Economists are continuing to push back the possibility of a recession. Only 14.3% of economists believe that a recession will occur by the end of 2020 according to the Wall Street Journal Survey of Economists done in January 2020. We are currently in the largest economic recovery period in the history of the United States One of the reasons economists are pushing the possibility of a recession back is the fact that the housing industry is continuing to excel. Every region of the United States saw an annual increase in buyer activity.
In every region of the country, home sales have increased compared to last year, but inventory levels continue to dwindle. Nationally, buyer activity is continuing to increase, but the amount of people ready to sell their home can not support the amount of buyer activity. Due to the inventory shortage, the number of homes for sale could reach a historic low.
Currently there is only 3 months supply of inventory nationally, this is the lowest level of inventory in the last 30 years. South Austin is currently well below 3 months of inventory, while the sold listings in one month is greater than the active listings in one month. At every price point inventory is declining annually.
Home prices are projected to continue appreciating for at least the next 2 years. With the continuing decrease of inventory, prices have no where but to go up. Interest rates are projected to be under 4% for the next 2 years. With interest rates so low, now could be one of the best times to buy in your market.