# Austin Housing Market Report: June 2020, Remote Work Finds Austin

> The Austin metro median sale price was $345,000 in June 2020, +3.8% year over year, with homes selling in 22 days and 1.4 months of supply. Remote Work Finds Austin, what the numbers mean if you are buying or selling in Austin.

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

**$345,000** is what the median Austin-area house sold for in June 2020, up 3.8% year over year. The 30-year fixed averaged 3.16% that month, the lowest monthly average in this series so far. At 1.4 months of supply, it was an extreme seller's market.

## Austin market statistics, June 2020

| Metric | June 2020 |
| --- | --- |
| Median sale price | $345,000 (+3.8% YoY) |
| Median price per sq ft | $163 (+3.9% YoY) |
| Homes sold | 3,597 (+10.3% YoY) |
| New listings | 3,462 |
| Active inventory | 4,891 (-34.2% YoY) |
| Months of supply | 1.4 |
| Median days on market | 22 |
| Sale-to-list ratio | 99.3% |
| Sold above asking | 25.8% |
| Listings with a price cut | 28.3% |
| 30-year fixed rate (avg) | 3.16% |

## Remote Work Finds Austin

Volume snapped back to 3,597 sales in June, the highest June in the series to that point, with inventory down to 1.4 months. The remote-work migration was underway and visible in the offers: out-of-state buyers, often unseen purchases, frequently cash or large down payments.

## What changed since May 2020

The median rose $15,584 from May 2020, a 4.7% move. Time on market shortened by 1 days, to 22. Active inventory shrank by 763 listings, to 4,891. The share of homes selling over asking gained 1.7 points, to 25.8%.

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

| | June 2020 | May 2020 | June 2019 | Since Oct 2016 |
| --- | --- | --- | --- | --- |
| Median sale price | $345,000 | $329,416 | $332,327 | highest since Oct 2016 |
| Median days on market | 22 | 23 | 24 | range 16–58 |
| Active inventory | 4,891 | 5,654 | 7,432 | range 4,660–7,969 |
| Months of supply | 1.4 | 2.4 | 2.3 | lowest since Oct 2016 |
| Sold above asking | 26% | 24% | 24% | range 14%–31% |
| 30-year fixed rate | 3.16% | 3.23% | 3.8% | lowest since Oct 2016 |

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

## If you are buying in Austin right now

At 1.4 months of supply there is no version of this where you take your time. Be fully underwritten before you tour, not pre-qualified, underwritten, with income and assets already verified. Decide your ceiling in writing before you see the house, because you will be asked to decide in a day.

The average sale closed at 99.3% 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 $345,000 with 20% down at 3.16%, principal and interest runs about **$1,188 a month**. Add roughly $575 for property taxes and $230 for insurance and you are near **$1,993 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 22 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

**South Austin (78704).** Travis Heights, Bouldin Creek, Zilker, Barton Hills. Known for barton Springs, Zilker, tight inventory. It fits buyers who want walkability to South Congress and the park.

The metro numbers above are an average of a very unequal city, South Austin 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/south-austin/](/neighborhoods/south-austin/), including what is wrong with it.

## On in Austin, June 2020

| When | What | Why it matters to a listing |
| --- | --- | --- |
| June 2020 | **Public events**, cancelled | Austin's public event calendar did not run in its usual form. Large gatherings were restricted from mid-March 2020, and the festivals, races and street closures that normally shape a month here were cancelled, moved online or held at reduced size. |

## What is coming next

Tesla's factory site decision, reportedly down to Austin and Tulsa.

## Common questions

### I am moving to Austin from California. What actually surprises people?

Four things, in order of how much money they cost. Property taxes, which run roughly 1.8-2.5% and have no Proposition 13-style cap beyond the 10% homestead limit. Homeowners insurance, which is among the highest in the country because of hail. Summer utility bills in an underinsulated house. And foundations: much of the region sits on expansive clay that moves with drought and rain, so watering your foundation is a real practice here and a structural engineer's report is money well spent on any older slab home.

### How much do I need to earn to buy a median-priced Austin home?

At $345,000 with 20% down at 3.16%, the all-in monthly payment is roughly $1,993 including estimated taxes and insurance. At a 30% housing-to-income ratio that implies household income around **$80,000**. Lenders will approve you well above that; whether you should go there is a different question. Property taxes are estimated at 2.0% of value, verify the actual rate for the specific address, because a MUD can push it past 3%.

### When is the best time of year to buy a house in Austin?

October through January, consistently. Austin's listing calendar runs about six weeks ahead of the national one. The best selection appears in March and April, and so does the most competition. By late fall, spring listings are six months old, sellers have adjusted their expectations, and days on market runs 30 to 50 days longer than it did in April. You get less to choose from and far more leverage over what is left.

### What is the average home price in Austin?

The median single-family sale across the Austin metro in June 2020 was $345,000. Median is the more useful number than average here. A handful of Westlake and Tarrytown sales pull an average upward in a way that tells you nothing about what you will pay. Note also that the metro figure covers Travis, Williamson, Hays, Bastrop and Caldwell counties; the City of Austin proper runs meaningfully higher, and the suburbs meaningfully lower.

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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 June 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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