Austin homes at risk of selling at a loss
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Nearly 14% of Austin home listings were at risk of selling at a loss in May, and the risk was higher for homes purchased during the pandemic, real estate firm Redfin estimates.
Why it matters: That and other figures point once more to the comparatively enormous bubble around the Austin housing market during the pandemic — and how it's popped.
Stunning stat: Nearly half (47.5%) of for-sale homes in Austin that were bought in the last three years are at risk of selling at a loss — the highest share among major metros, per Redfin.
- And nearly a third (32.2%) of for-sale homes in Austin bought during the throes of the pandemic (July 2020-July 2022) might sell at a loss, second only to San Francisco (34%).
Yes, but: If you're selling your Austin home that you bought before the pandemic, there's just a 0.5% chance that you sell at a loss, per the report.
Follow the money: The median sales price for an Austin-area home in June was $449,900 — roughly the same as a year earlier, per data from the Austin Board of Realtors and Unlock MLS.
What they're saying: The Austin housing market is undergoing a "gradual adjustment" following months of home sales being down from last year, Vaike O'Grady, research adviser at Unlock MLS, a data site operated by the Austin Board of Realtors, said in a statement.
- "The median sales price has held steady, underscoring ongoing demand and reinforcing long-term confidence in the Austin market," O'Grady said.
Zoom out: With prices now softening, "sellers are in a position where they may need to choose between accepting a lower price or taking the home off the market," Redfin senior economist Asad Khan said in the report.
Worth mentioning: There's a difference between taking a loss and being "underwater," or owing more money to your lender than the house is worth.
- Nearly all sellers have enough equity in their homes to sell them for more than they owe, per Redfin.