Regardless of price, Austin homes keep coming off the market

Austin remains the most popular housing market in the country, as tech workers continue to flock to the state capital of Lone Star. In 2021 alone, 1,440 Austin homes sold for between $ 100,000 and $ 299,999 above the price of sale, and 72 have already been sold for $ 300,000 or more above the asking price, according to a recent report. study from Redfin.

At this time last year, only two Austin homes had sold for more than $ 300,000 above the asking price.

More than 4,500 Austin homes have sold for between $ 25,000 and $ 99,999 above the asking price. Homes stay on the market for an average of 24 days, Redfin reported.

In all, nearly 74% of Austin’s homes sold above their asking price in April, and the metro had the highest price growth in the country that month, said John Dawson, a Redfin agent based in Austin.

“I recently sold a home in Austin that was trading at $ 565,000 and closing at $ 715,000,” Dawson said. “We received about a dozen offers, which is actually a low number by today’s standards. The winning buyer also waived appraisal and financing contingencies and handed out cupcakes that matched the interior colors of the house, which was a nice touch because the seller is an artist and the house is unique and colorful. ”

The jumbo market for brokers is back in a huge way

With intense demand for homes at the higher end of the price spectrum, the new updates to the QM rule that went into effect on March 1, and growing investor interest in giant mortgages, this is the perfect time for the broker community support their clients quickly. and ease.

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Median Austin home sales price in the Texas capital increased 42.3% year-over-year, to $ 465,000. Net inflow to Austin, defined as the number of people looking to move minus the number of people looking to leave, has doubled over the past year, Redfin reported.

In April, Jay Garrett, a loan officer at Supreme LoanMcClellan Branch in Austin said he was looking at 10 to 40 deals on homes no matter where they are in Austin, and the cash deals are winning the day because sellers don’t want to have to worry about the home appraisal being too much. low for someone. who needs financing.

“If a seller has those multiple offers, they are looking at the cash offers first and may even consider a lower cash offer because they don’t have to worry about appraising the property at that price,” Garrett said. “If they get a higher offer that has financing, when the appraisal returns, the buyer will renegotiate the sale price to be closer to the appraised value.”

Austin has become a popular destination for home buyers for several years now, and the onset of the COVID-19 pandemic sent home prices higher as inventory declined. In 2020 and 2021, it became especially popular for remote tech industry workers looking to relocate from California’s Silicon Valley and Bay Area. Because of those moving companies – many of which are big on money, thanks to their tech salaries and cash from the sale of their expensive California homes – locals are struggling to compete with out-of-town home buyers. by the already limited supply of housing.

In fact, Redfin reported that the budgets of most of those moving out of town are 32% higher, on average, than those of Austinites ($ 855,000 vs. $ 650,000).

“I’m encouraging sellers to price their Austin homes realistically, because some of the ‘perks’ are not really perks,” Dawson said. “Some are cases of an extremely motivated buyer who was willing to pay much more than the sale price to insure the home he wanted. For example, I sold a house last week for $ 635,000. If I were to list the next door neighbor’s house, assuming it’s identical, I’d list it for around $ 590,000 because that’s right where most of the offers came in. “

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