If you’ve heard the wild stories about insanely high offers for homes in Austin — or you’ve been a character in one of those stories — we now have data that shows this is no fairytale.
Residential real estate platform Redfin reported March 24 that the average home in the Austin metro area sold for 7.1 percent above its asking price during the four-week period that ended March 14. That was the biggest gap between asking price and sale price among the 47 major metro areas included in the Redfin analysis.
Just a year ago, the average Austin home sold for 0.9 percent below the asking price, Redfin says. The jump from 0.9 percent to 7.1 percent represents the biggest year-over-year gain among the 47 metro areas.
Redfin provides this example of what the 7.1 percent gap looks like: A home in the Austin area listed at $400,000 sold for roughly $428,000 in the four-week period that ended March 14. On top of that, the typical home in the area sold last month in 30 days — 12 days faster than the year before.
“Nearly every offer my clients make faces competition, and most homes are going for more than 20 percent over asking price,” April Miller, a Redfin agent in Austin, says in a release.
“I recently submitted an offer on behalf of a client for a remodeled three-bedroom, two-bathroom home listed at $515,000,” Miller adds. “We offered $100,000 over asking price and waived the appraisal and financing contingencies, and we still came in third out of 38 total offers. Every single potential buyer offered more than the asking price, and four of the offers were $100,000 or more over.”
What’s behind these bidding wars? Redfin cites the number of affluent people moving to the Austin area as a factor. In Austin, the average out-of-towner had an $852,500 homebuying budget last year. That budget was 32 percent bigger than the homebuying budget of a local resident.
Elsewhere in Texas, the typical home in the Dallas area sold for 0.3 percent above the asking price in the four-week period that ended March 14, according to Redfin. In the San Antonio (0.9 percent) and Houston (1.4 percent) areas, the typical home sold below the asking price.
Nationwide, the average home in the U.S. sold for exactly 100 percent of its list price during the four-week period that ended March 14 — an all-time high since Redfin started tracking this data in 2016.