Are You Prepared for San Antonio/Austin’s 2021 Real Estate Market?
Despite the onset of the COVID-19 pandemic and the uncertainty that came with it, the San Antonio and Austin market have been some of the strongest in the country. In 2021, markets across Texas, especially San Antonio and Austin, are forecasted to continue that momentum. With demand steadily increasing, low-interest rates motivating buyers, and rapidly rising home sale prices, real estate agents all across San Antonio and Austin should gear up for another scorching year.
2021 San Antonio/Austin Real Estate Outlook: Hot
As of December 2020, the average home in San Antonio was valued at $198,259, a 5.0% increase year-over-year. That figure is expected to increase as Zillow predicts the market will accelerate and rise another 9.9% within the next year. In Austin, the average home was valued at $437,800, an impressive 12.8% increase year-over-year, and that market is predicted to rise another 11.6% within the next year. Rising prices, despite 2020’s challenges, are a promising sign that 2021 could be profitable for agents and sellers alike.
Additionally, home sales across Texas grew 5.1%, pushing the number of transactions to all-time highs. Meanwhile, the number of days properties spent on the market fell to a record low of 48 days. Thanks to record low-interest rates and continued strong demand, Texas, especially San Antonio and Austin, will likely be a seller’s market as 2021 unfolds.
Rent prices, on the other hand, have neither increased or decreased year-over-year statewide, though Austin specifically saw rent prices decrease by 4.0%. A total of 1.3% of San Antonio mortgages were reported as 30-89 days delinquent and 0.5% of Austin’s mortgages were reported as 30-89 days delinquent. So, while new transactions continue to boom and Texas attracts many out-of-state residents, current homeowners will thrive as well.
2020 San Antonio/Austin Real Estate Market Data
|Zillow Home Value Index||$198,259||$437,800|
|1-Year Change on Home Values||+5.0%||+12.8%|
|1-Year Change on Rent Prices||0.0%||-4.0%|
|Delinquent on Mortgages||1.3%||0.5%|
|Buyer’s or Seller’s Market||Seller’s||Seller’s|
Market Insights for San Antonio/Austin
In November 2020, the Bureau of Labor Statistics reported that San Antonio’s unemployment rate was 7.3%, down from 8.0% in July. In Austin, the most recent unemployment rate was 5.9%, down from 6.8% in July. As it sits, these two Texas powerhouses aren’t far from the national unemployment rate of 6.9%, but that’s likely to change as tourism and hospitality return to normalcy. Economic activity often correlates with growth in the real estate industry, and narrowing unemployment rates along with low-interest rates are a positive sign for agents the year ahead.
Both San Antonio and Austin also sport some other attractive features that could positively impact their respective markets. The Lone Star State is a hot spot for those with new remote work positions looking to escape the high taxes, hustle and bustle, and harsh winters of large northeastern cities. Expect inventory to remain low, which will keep prices high and encourage bidding wars. San Antonio and Austin real estate, while still a great investment that affords its homeowners a high quality of life, will play out to be a strong seller’s market in 2021.
With a robust 2021 economic forecast and major investments from companies like Oracle, 8VC, QuestionPro, and Tesla — who just moved their headquarters to Austin —- Texas real estate agents will need to be at the top of their game and prepare clients for the likelihood of bidding wars. However, more buyers are looking to make San Antonio and Austin their permanent residence and are thus likely willing to pay more, which could push the market to new heights. With a myriad of opportunities on the horizon, there has never been a better time to help your fellow Texans find the property of their dreams.
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