The median Austin-area listing spent 24 days on the market in March 2020. The median sale was $330,000, up 8.9% year over year. Active inventory stood at 5,590 listings, down 10.6% year over year.
Austin market statistics, March 2020
| Metric | March 2020 |
|---|---|
| Median sale price | $330,000 (+8.9% YoY) |
| Median price per sq ft | $159 (+4.8% YoY) |
| Homes sold | 2,833 (+7.1% YoY) |
| New listings | 3,638 |
| Active inventory | 5,590 (-10.6% YoY) |
| Months of supply | 2 |
| Median days on market | 24 |
| Sale-to-list ratio | 99.4% |
| Sold above asking | 29.1% |
| Listings with a price cut | 19.8% |
| 30-year fixed rate (avg) | 3.45% |
SXSW Is Cancelled and Nobody Knows Anything
SXSW was cancelled March 6, the first time in 34 years. Austin issued a stay-home order March 24. The Federal Reserve cut to zero on March 15 and the 30-year mortgage fell below 3.5%. Showings stopped for about three weeks, and everyone in this business assumed prices were about to fall.
What changed since February 2020
The median rose $2,860 from February 2020, a 0.9% move. Time on market shortened by 18 days, to 24. Active inventory grew by 577 listings, to 5,590. The share of homes selling over asking gained 4.3 points, to 29.1%.
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
| March 2020 | February 2020 | March 2019 | Since Oct 2016 | |
|---|---|---|---|---|
| Median sale price | $330,000 | $327,140 | $303,060 | range $255,626–$332,327 |
| Median days on market | 24 | 42 | 35 | range 16–58 |
| Active inventory | 5,590 | 5,013 | 6,250 | range 4,660–7,969 |
| Months of supply | 2 | 2.2 | 2.4 | range 1.9–3.8 |
| Sold above asking | 29% | 25% | 20% | range 14%–30% |
| 30-year fixed rate | 3.45% | 3.47% | 4.26% | 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 March 2020 falls against every month that came before it.
If you are buying in Austin right now
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 99.4% 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 $330,000 with 20% down at 3.45%, principal and interest runs about $1,178 a month. Add roughly $550 for property taxes and $220 for insurance and you are near $1,948 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 24 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
UT Area & Bryker Woods (78703 & 78705). West Campus, Bryker Woods, Old West Austin. Known for uT-adjacent investment potential. It fits investors and buyers who want to be in the center of everything.
The metro numbers above are an average of a very unequal city, UT Area & Bryker Woods 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/ut-area-bryker-woods/, including what is wrong with it.
On in Austin, March 2020
| When | What | Why it matters to a listing |
|---|---|---|
| Early March | Zilker Kite Festival, Zilker Park | Zilker parking is gone by mid-morning and Barton Springs Road backs up. A Sunday that costs you traffic in 78704 and nowhere else. |
| Mar 13–22 | SXSW, cancelled | Called off on 6 March as the pandemic arrived. The first cancellation in 34 years. Downtown had its quietest March in a generation. |
What is coming next
Nobody knows. The two forces pulling in opposite directions are an economy in freefall and the cheapest mortgage money in history, and which one wins is genuinely unclear right now.
Common questions
How long are homes taking to sell in Austin?
A median of 24 days in March 2020. That is the number to watch if you only watch one, days on market turns before price does, in both directions. For reference, since October 2016 this measure has ranged from 16 days in May 2016 to 58 in January 2019.
What are the best neighborhoods in Austin for families?
It depends on what you are optimizing for, and anyone who answers without asking is selling you something. Broadly: Circle C, Steiner Ranch and Avery Ranch for space and schools; Mueller, Crestview and Brentwood for walkability with a yard; Westlake and West Lake Hills for Eanes ISD if the budget reaches; Hyde Park and Bryker Woods for older homes near central. There are honest write-ups of nine of these at theaustinlocalgroup.com/neighborhoods, including the parts that are not flattering.
Is it a good time to buy a house in Austin?
Depends entirely on your timeline. At 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.
Part of a retrospective series on the Austin market, one post per month since 2016, compiled from the historical record. This edition covers March 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.