January 2020 Market Report Overview – Home Prices Increasing

Overview of January 2020 Market Report
2,674 homes sold in December.  16% more than last year.  This is the second highest December sales in Austin history, slightly less than the record year 2018.
There are 3,217 homes Pending.  This is 24% more than one year ago!  This is the second highest in Austin history, slightly less than the record year 2018
There are 5,596 homes for sale at the beginning of January.  This is 13% fewer homes for sale than one year ago.  And also 5% lower than 2018.
This January has the lowest Months of Inventory in the last 8 years and probably in a much, much longer time.  Last year in January there was only 2.78 Months of Inventory, defined as an Extreme Seller’s Market.  Today this has dropped to 2.09 Month’s of Inventory.  Historically, Months of Inventory usually decreases, gets smaller, as the market gets tighter because of increased Spring demand.  This increase in demand usually slows down in July or August and Month’s of Inventory increases as demand decreases with kids in school.  This Spring could be a very tight market where demand outpaces homes for sale and should increase overall prices and result in multiple offers for homes.  Every price range is different.  With less demand, prices over $900,000 are in a Normal Seller’s Market and prices above $2M are in a Balanced or Buyer’s Market.
Average sold price is December was $409,267.  This is an increase of 9.9% from one year ago.  The Median home sale for December was $320,000.  This is an increase of 5.6% from one year ago.