We get this question from our clients all the time. What does Low Inventory in Dripping Springs and the Austin Hill Country mean? Let's put this into perspective and look at the Austin inventory right before the pandemic. In February 2020, we had 7100 homes listed for sale in the Austin MLS. By February of 2021, that number dropped to 2700. Another metric commonly referred to in real estate is months of inventory. A market is considered balanced, meaning equally weighted between buyers and sellers, when there are six months of available inventory. The greater Austin MSA is currently sitting at 0.4 months or about 12 days worth of inventory. Markets like Dripping Springs are even tighter at six days of inventory.
So just how competitive was the market in February of 2022? There were 2400 homes listed for sale in the Austin MLS, and there were over 2700 residential home sales during that same timeframe.
What does a low inventory market mean for you as a buyer? First, you should expect competition when you submit an offer on a property. Therefore, it's essential to put your best foot forward from the beginning of the process. Presenting a solid, competitive and well-organized offer goes a long way with sellers in this fast-paced market. Now more than ever, it's essential to work with a seasoned agent who can advise you during the process. The agents of The Veritas Group have a proven track record of helping clients win bids in multiple offer situations and advising clients of all of their options. For example, valuations are different between the resale home market and the new construction home market.
Additionally, we currently see numerous private, off-market (not in MLS) sales. You get access to Compass Coming Soon listings and exclusive Compass pocket listings when you work with us. All of our agents are established in the hill country markets and have the inside track on properties that may never hit MLS.
We'd love to work with you to find your home in this HOT real estate season.
Have a question about the Dripping Springs or Austin Hill Country market? Send us an email VeritasGroup@compass.com - Who knows, we may feature your question in our next newsletter.