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Real estate bidding wars driving most Austin home sales above asking price

(Shutterstock)

Thanks to bidding wars, high demand and breakneck sales speeds, most Austin homes sold for higher than their asking prices in 2021 as the metro surpassed sale-to-list price ratios in all U.S. cities outside of New York and California.


Austin's sale-to-list price ratio was 105.1% in 2021, according to a Porch.com study. That's higher than all but four cities, including Buffalo and Rochester, New York, and Californian metros San Jose and San Francisco, which topped the list.

The median home price in the Austin metro reached nearly $500,000 in February, coming in at an all-time high of $499,995, according to an Austin Board of Realtors report. The new record is 28% higher than just a year prior but even lower than the city of Austin's median home price, which reached $565,000 in the same time frame.

The Porch report found a positive correlation between home price and the average sale-to-list ratio. While the nationwide average ratio was 101.2%, bids were inclined to be higher in areas with higher home prices like Austin.

Multiple offers and speedy sales—Austin had just 0.4 months of available inventory in February, offering much less wiggle room than the six months of inventory found in healthy housing markets—have become trademarks in Austin and the nation amid a pandemic housing boom.

And with a "big year ahead," according to ABoR's 2022 president Cord Shiflet, all-out bidding wars may continue to be the new norm in the up-and-coming tech city.

“We’re hearing from economists that last month’s numbers are a potential harbinger of a big year ahead even as our market continues to deal with insufficient supply compared to demand resulting in the steady cycle of home price increases,” Shiflet said.

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