# Austin Housing Market Report: February 2020, The Market Was Already Accelerating

> The Austin metro median sale price was $327,140 in February 2020, +10.9% year over year, with homes selling in 42 days and 2.2 months of supply. The Market Was Already Accelerating, what the numbers mean if you are buying or selling in Austin.

Mike Vilece · March 15, 2020
Canonical page: https://theaustinlocalgroup.com/blog/austin-housing-market-february-2020/

Half the homes that sold across the Austin metro in February 2020 went for more than **$327,140**, and half for less, up 10.9% year over year. Homes took a median of 42 days to sell. Active inventory stood at 5,013 listings, down 16.0% year over year. That made it a seller's market.

## Austin market statistics, February 2020

| Metric | February 2020 |
| --- | --- |
| Median sale price | $327,140 (+10.9% YoY) |
| Median price per sq ft | $159 (+5.3% YoY) |
| Homes sold | 2,280 (+10.7% YoY) |
| New listings | 2,849 |
| Active inventory | 5,013 (-16.0% YoY) |
| Months of supply | 2.2 |
| Median days on market | 42 |
| Sale-to-list ratio | 98.9% |
| Sold above asking | 24.7% |
| Listings with a price cut | 16.8% |
| 30-year fixed rate (avg) | 3.47% |

## The Market Was Already Accelerating

Council passed the land development code rewrite on second reading February 13. Prices were up 10.9% year over year and 29% of homes were selling above list. The market was already accelerating before anything else happened.

## What changed since January 2020

The median rose $19,140 from January 2020, a 6.2% move. Time on market shortened by 6 days, to 42. Active inventory shrank by 24 listings, to 5,013. The share of homes selling over asking gained 7.6 points, to 24.7%.

One month is noise. The reason to read it anyway is that direction shows up in inventory and days on market well before it shows up in price, so the months where those two disagree with the headline number are the interesting ones.

## Where this month sits in the cycle

| | February 2020 | January 2020 | February 2019 | Since Oct 2016 |
| --- | --- | --- | --- | --- |
| Median sale price | $327,140 | $308,000 | $295,000 | range $255,626–$332,327 |
| Median days on market | 42 | 48 | 57 | range 16–58 |
| Active inventory | 5,013 | 5,037 | 5,965 | range 4,660–7,969 |
| Months of supply | 2.2 | 2.8 | 2.9 | range 1.9–3.8 |
| Sold above asking | 25% | 17% | 18% | range 14%–30% |
| 30-year fixed rate | 3.47% | 3.62% | 4.37% | range 3.44%–4.87% |

The right-hand column is the range this series has covered since October 2016. No forecast in it, just where February 2020 falls against every month that came before it.

## If you are buying in Austin right now

2.2 months of supply is a seller's market, but not a chaotic one. Good homes priced correctly move in the first weekend; anything still sitting after three weeks has a reason, and finding out what it is before you offer is the whole job.

The average sale closed at 98.9% of list, essentially at asking. The negotiation in a month like this happens on price cuts before you arrive and on repairs after you are under contract, not on the headline number.

**The payment math.** At $327,140 with 20% down at 3.47%, principal and interest runs about **$1,171 a month**. Add roughly $545 for property taxes and $218 for insurance and you are near **$1,934 a month** all in. Texas has no state income tax and this is where the state collects instead, budget the tax line from day one, not as an afterthought.

**If you are selling:** you have the leverage, and the mistake available to you is overpricing into it anyway. Homes were selling in 42 days. A listing that sits three weeks in this market has told every agent in town that something is wrong, and you will end up taking less than if you had priced it right on day one.

## Neighborhood in focus

**Northwest Hills (78731).** Highland Park, Mesa Park. Known for quiet, large lots, family neighborhoods. It fits families who want space and a central location.

The metro numbers above are an average of a very unequal city, Northwest Hills does not move in lockstep with Kyle or Leander, and the gap between ZIPs widens in exactly the months the metro looks calm. There is a longer, more honest write-up at [/neighborhoods/northwest-hills/](/neighborhoods/northwest-hills/), including what is wrong with it.

## On in Austin, February 2020

| When | What | Why it matters to a listing |
| --- | --- | --- |
| Mid-February | **Austin Marathon**, Downtown / central | Road closures across downtown and central Austin from before dawn until early afternoon. The one Sunday of the year not to schedule a central open house. |

## What is coming next

SXSW runs March 13 to 22. A new coronavirus is in the news and a handful of tech companies have pulled out of the festival.

## Common questions

### Is it a good time to buy a house in Austin?

Depends entirely on your timeline. At 2.2 months of supply you are competing, paying up, and giving up contingencies. If you need to be in a house this year, you buy and you accept the terms. If you can wait, understand that you are paying a premium for urgency.

### How much are property taxes in Austin?

Combined city, county, school district and community college rates in the Austin area generally land between about 1.8% and 2.5% of assessed value, and higher inside a Municipal Utility District, where 3%+ is possible. There is no state income tax in Texas, and property tax is the trade. Two things every buyer should do: file a homestead exemption by April 30 of the year after you close, which caps annual taxable value increases at 10%, and check whether your target address sits in a MUD or PID before you finalize your budget.

### What should I know about flooding before buying in Austin?

Central Texas is Flash Flood Alley: thin soil over limestone, steep terrain, and storms that stall. Austin models its own floodplain, which is often stricter than FEMA's, so a house can sit outside the FEMA 100-year map and inside the city's. Standard homeowners insurance does not cover flood, NFIP policies take 30 days to take effect, and plenty of local flooding happens outside mapped floodplains. Pull both maps and get a flood quote during your option period.

### Are Austin home prices going up or down?

Up 10.9% year over year as of February 2020. Austin's price growth in this period is running well ahead of national averages, which is a function of job growth, not of anything unusual about the houses.

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*Part of a retrospective series on the Austin market, one post per month since 2016, compiled from the historical record. This edition covers February 2020; every figure is as reported for that month, and nothing in it looks past it.*

*Source: Redfin Data Center metro market tracker: single-family, Austin-Round Rock-San Marcos metro, not seasonally adjusted. Mortgage rates are the monthly average of the Freddie Mac Primary Mortgage Market Survey 30-year fixed rate. Payment, tax and insurance figures are estimates for illustration and are not a quote. Median sale price is not a guarantee of value for any specific property.*

*Written by Mike Vilece, a licensed Texas real estate agent with Compass in Austin. If you want the version of this that applies to your street and your budget, [ask me directly](/#contact).*

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