That is the entry-level price point in the Austin luxury market.
There are a number of definitions floating around for “luxury market”. The definition I prefer (and many brokerages use) is “the top 10% of the market”. Looking historically at the Austin real estate market, the top 10% has seen steady, single-digit appreciation over the years. In 2020, though, things started to accelerate… A LOT.
Here are a few observations about the luxury market in Austin, defined as the top 10% of real estate transactions in MLS for the city of Austin:
- In 2011, the median sale price of the top 10% of the market was $765,000. In 2021, it is $1,750,000.
- In 2011, the lowest sale price in the top 10% of the market was $569,000. In 2021, it is $1,300,000.
- The lowest sale price in the luxury market in 2021 ($1,300,000) is 30% higher than it was in 2020 ($1,000,000).
Lastly, keep in mind that the above looks at Austin as a whole. But real estate is hyper local, and so using that definition of the luxury market will yield different results for one area of town vs. another. For example, the entry level price point for the luxury market in Tarrytown is ~$2.9M (lot values alone are ~$1M in that area).
The overall Austin market has continued to follow a seasonal slow-down this fall, driven primarily by a declining number of listings. While the number of new listings coming to market is consistent with prior years, the number of active buyers still vastly outnumbers available inventory and creates that feeling of a very hot market. Days on market in November were the highest so far this year, but still at a median of just 10 days!
Overall transactions jumped back up at the end of November, well above prior years. Overall transactions for the year are down -3.6% compared to the same period in 2020, with the first half of the year up 10.5% and the second half of the year down ~-14% (a tougher compare with the back-loaded 2020).
The key takeaway is that there is still far too little inventory to meet such significant buyer demand. If you are thinking about selling your home, please contact me for more information and a market analysis. The important thing is to have a plan and I can help you build one to sell for the most amount of money in the least amount of time and with as little stress as possible.