As you’ve learned from my past messages, the real estate market is constantly changing. We often discuss how these changes pan out from month to month or year to year, but what do real estate trends look like when we look back even further—say, the last two decades?
Actually, you’d be amazed at how much things have changed. To illustrate what I mean, let’s look back at some real estate statistics from 20 years ago.
In 1999, 4,419 homes sold in Austin at an average price of $141,888 and after spending an average of 31 days on the market.
Fast forward to 2004, just a couple of years after the 2001 downturn that long-time Austin residents will remember, our local market saw 5,173 homes sell at an average price of $182,745 and after spending an average of 57 days on the market. Thanks to the general strength of our market at this point, we weren’t affected as severely as many other markets across the nation when the 2009 recession hit. In that year, we had 4,700 home sales, an average price of $220,138, and an average days on market (DOM) of 60 days.
As is true of all markets, though, there comes a point when the real estate cycle must dip. Growth can’t continue forever, after all. Therefore, in 2014, we saw home prices (which had been rising since before the turn of the millennium) take a slight hit, going down to an average of $200,095. Thanks to this increased affordability, total sales and the average DOM also rose. 6,268 homes sold in Austin that year, and those listings spent an average of just 28 DOM.
So, now that we’ve looked back into the past, what can be said of today’s real estate market? How have things changed?
Because 2019 has not yet ended, I was only able to pull data from the first three quarters. During those three quarters, the average home price was an amazing $398,318. This means average local properties have appreciated about $103,000 in the past five years alone.
This makes one thing clear: If you are currently renting, you’re missing out. Home values are only going to go up as time goes on, so now is the time to become a homeowner and start building equity. It’s a great time to make a move for buyers and sellers alike.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.