A year ago, homebuyers were more inclined to act on a macro level when looking at the low supply of available homes and the incredibly high demand. The supply is growing, which leads to more choices; giving buyers the ability to comparison shop. The market has shifted a bit to a micro level determining a home’s value based on the growing supply. Remember, a home is worth what a buyer is willing and able to pay. The ‘willing’ part is really key right now because it is more directly tied to a specific home, rather than any home.
Austin Real Estate Market Statistics
Here’s one piece of data based on reports I ran on July 18, 2022, to help paint the picture. I looked at 3 specific zip codes: 78748 (south Austin), 78704 (central Austin), and 78731 (north Austin). The report included homes that sold in the last 30 days and included single-family houses and condos.
Market snapshot: Sold homes in Austin’s 78748, 78704, and 78731 zip codes
▪ In 78748, 66 closed: 22 sold under list price, 11 sold at list, and 33 were over list.
▪ In 78704, 45 closed: 24 sold under list price, 6 sold at list, and 15 were over list.
▪ In 78731, 24 closed: 5 sold under list price, 4 sold at list, and 15 sold over list.
Data points for all 3 zip codes were the same, the ratio of most homes that sold under list fell within 90% or more of the asking price. For those selling at the asking price or over, most went under contract within 8 days. The homes that sold under the list price were mostly over 10 days on the market, the highest day count being 66.
The market isn’t soft, but it is getting choosy
The takeaway is that buyers are basing the value of a home a bit more specific to the subject property than they were a year ago when just about everything was selling over the list and quickly – with few properties to compare. There are more homes to choose from and the buyers’ internal comparable market analysis is starting to carry more weight. A home’s worth isn’t just about the data, it’s about the emotional connection, wants, and needs of the buyer. Does it check a lot of boxes? Some of the value is simply based on the homes they have seen before. With more homes on the market, comes more comparison shopping.
Homebuyers Ask If It’s Worth It
The question for many buyers is “is it worth it?” For those who offer over list price, the value is there and it is worth every penny. There is a balancing act of supply and demand right now. A year ago, almost every home was worth going over, because the value of getting any home was high. It’s no longer about ‘any’ home, it is about the home in question and whether the price is worth it to the buyer.