97 Offers in One Weekend

Were there really 97 offers on an ordinary house in Round Rock last weekend? Yes, that happened.

The Austin housing market has been tight for a while. For well over a year, buyers have had to have their financing lined up and be ready to close quickly, and houses in popular areas have been seeing multiple offers. For 2020, the pattern was that houses would go on the market Friday, host viewings over the weekend, and receive three or four offers. Then one offer would be accepted on Monday.

More Buyers Than Sellers

So far in 2021, the supply of houses has been reduced, while the number of buyers has increased. Now we are consistently seeing houses get dozens of offers, with the winning bid often well over the listing price, not to mention well over the price any comparable house has sold for. The most locally famous example was a house typical for the Brushy Creek neighborhood in Round Rock that was listed for $370k. It received 97 offers and ultimately closed at $541k, a whopping 46% over the asking price. While it wasn’t my buyer or my seller, it has become the latest anecdotal example of how our housing market is out of control.

Calling All Sellers

So, where does this leave our Austin area market, and how can buyers actually get the house they want? I have to think these prices are going to bring more sellers to the market. However, even with more sellers, there is still pent-up demand to work through. As I was talking with a real estate agent today about this, we came to the conclusion that having more buyers than sellers is much better than the flip side of having too many sellers and not enough buyers. But it does make things more challenging if you’re the one trying to buy.

So What Should Buyers Do?

If you’re a buyer, my first advice would be to be patient. Having your financing lined up is a must. In this current market, Austin buyers must have a strong strategy with a good real estate agent. This isn’t the market for casual shoppers. And, as always, if you have questions about your specific situation, give me a call. It’s a crazy market, and I’m always here to help.