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May typically marks the start of the summer real estate season, with buyers and sellers taking advantage of nice weather and summer vacation to move. Of course, this year has been anything but typical.
So what does this mean for the Austin market right now?
New listings climbing. After a slower March for the market, we started to see new listings climb back up in April and this trend continued into May. This month, we saw 19% more single-family homes listed in Austin vs. last month, indicating that more and more sellers are feeling comfortable putting their home up for sale.
Inventory remains tight. While new listings are continuing to climb, overall housing inventory is still lower than we expect for this time of year. Pre-coronavirus, there was already a nationwide shortage of homes for sale compared with previous years. The existing shortage coupled with sellers sitting out towards the end of March and much of April meant fewer homes were for sale in May.
Buyers flood the market. Conversely, once stay-at-home requirements were lifted, buyer activity soared. In Austin, the number of homes that went under contract in May 2020 was up 59% from April 2020. Additionally, the huge jump in home showing activity, as indicated in the graph below, shows us that buyer interest has rebounded and surpassed levels seen before the pandemic.
So what does this mean if you’re a buyer or seller?
For buyers, hundreds of new listings are hitting the market, but not at a rate that will close the inventory gap just yet. This means there are fewer homes on the market heading into June with more interested buyers entering the market each day. If you’re thinking about buying, having a competitive offer (such as a contingency-free offer, which you can make with Orchard) will help you stand out to sellers who may receive multiple bids.
For sellers, homes are going under contract more quickly. In May, the average number of days a home was listed on the market before selling (DOM) was 17 days compared with 19 days this time last year. The increase in buyer activity so quickly after the dip in March and April shows how quickly homes are getting snapped up. Additionally, median home prices continue to remain stable, suggesting that most sellers are receiving offers close to their original list price.
Social distancing measures (six-foot distance, gloves, masks, thorough cleaning between showings, etc.) will also still need to be implemented when anyone visits your home. With Orchard’s Buy & Sell service, we’ll take care of deep cleaning and listing your home after you move, so you can skip the stress of home showings.
For a deeper dive into Austin’s real estate recap for May 2020, read on.
By The Numbers
New listings in May. Although down 18% from this month last year, listings continue to pick up each week.
The median percentage of a home’s original list price that it ended up selling for. This suggests that sellers are getting at or very near their original asking price. In Austin, this normally ranges between 96-98%.
Increase in homes that went under contract in May 2020 vs. last month. Once restrictions were lifted, buyer activity skyrocketed in May. Not only did more homes go under contract compared to last month, but this is also a substantial increase in home sales vs. this time last year.
“Buyer interest has been strong in Austin throughout the pandemic, but soared once stay-at-home orders were lifted. I’m working with my clients to make non-contingent offers, which is a great way to stand out to sellers and a unique benefit of working with Orchard.”
— Jennifer Sola, Orchard Home Advisor
Wondering how long your commute will be to a potential home?
You can now enhance your home search on Orchard’s website by entering the address of locations important to you in our Home Match Quiz. Whether it’s an office, school, or gym – enter the address and your desired commute time and we’ll do the rest.