The #1 Central Texas Market Report

Following a remarkable comeback, AirBnB is set to make its long-awaited Wall Street debut, just as the pandemic worsens and throws the state of the travel industry into question.

Despite all that Airbnb’s IPO is seeing a much higher valuation of $42 Billion, despite Covid-19 lockdowns and travel restrictions.

With coronavirus vaccines and a potential return to normality on the horizon, does Airbnb have the right stuff to survive and thrive in public markets?

  1. Airbnb’s Valuation: $42 Billion
  2. Airbnb Quarterly Profits: $219 Million
  3. Airbnb 2019 Guests: 54 Million
  4. Vaccine Efficacy: 95%
  5. Airbnb’s Founding: 2008

An early look at November Stats & My take on what it all means!
The first wave of data for November sales is in from our friends at capitol title, and as I do every month... My take on what the early stats suggest.

Days on Market continues to fall, with more sales than new listings! We have been hearing and seeing this trend since the Fed dropped the Interest rate, and the first stay at home orders were lifted. This opened up the opportunity for all of the major market segments to borrow money at historically low rates. And guess what Mortgage rates just set 14th record low of the year, This means more refinancing, and longer contract to close timelines, just in time for the Holidays.

The cyclical nature of the typical season usually shows about a 10% drop off in sales and listings this time of year, and 15% in presidential election years. Now we are seeing a little bit of a slowdown as October Sales were up by 29% over 2019 and Nov sales are only up 11.5% over 2019. A 17.5% drop off.

NOTE: November Closed Sales are the results of contracts written mostly in October.
Active listings down by almost 53% - with New listings only up 2.6% over November 2019
Median Sales Price Heat Map by MLS Area
Number of Sales up 11.5% over November 2019
The Question is... Is this a cyclical slowdown in nature, as we might expect... or could it be a result of the Election craziness, with virus and vaccine uncertainty affecting the overall economy and consumer confidence.., or a combination of the economic climate in general, coupled with a rise in local unaffordability, and no inventory?

With inventory levels dropping by 53% in Nov vs 2019 and prices continuing to rise at a record rate. The city of Austin is now in the bottom 15 of 50 major markets in the US affordability charts, as reported a few weeks ago.

Everyone has questions about what 2021 might hold, all we know from a Real Estate standpoint is all the indications say Interest rates will remain low, and unless a wave of property owners decide to put their home on the market, inventory will remain at staggeringly low levels causing prices to continue to rise in the Austin metro and most of Central Texas as well.
Thank you for your time today!
Stay safe and let me know what in the world I can do for you!