Top Realtors: Menard, Young sold 500-plus homes in 2020 — here's their advice for navigating crazy market

Set clear expectations going in, they advise

ARNOLD WELLS / ABJ

Matt Menard, left, and Greg Young are founders of Austin Real Estate Experts

Editor's note: This story is part of the 2021 Residential Real Estate Awards publication. To read the rest, go here.

Matt Menard and Greg Young remain some of the busiest Realtors in Central Texas.

The two men, founders of Austin Real Estate Experts, closed 531 sales in 2020 totaling $171 million. Because of that, they again earned the No. 1 spot in the group 2 category of the Residential Real Estate Awards.

The coronavirus pandemic changed things a bit last year. Menard and Young were not immune to the widespread disruptions of last spring, when fears about Covid-19 resulted in a temporary freeze among both buyers and sellers.

But the market rebounded, and even got hotter thanks partly to relocations from the coasts. Austin Real Estate Experts rode the wave, ending the year with 8% more closed sales and 20% more sales volume, due to higher prices, compared with 2019.

Menard and Young answered the questions below together on their record year.

What is your top piece of advice for other Realtors to deal with this crazy market and keep clients happy?

Right now, more than ever, it is critical to set proper expectations about the market. Be steady, poised and in control; Our clients’ emotions often reflect our own demeanor. Sellers need to be prepared for a full day's worth of showing appointments, the probability of multiple offers and the process of sorting through them. Buyers need to understand that their idea of budget and location may not be what they were expecting. Many buyers are forced to either pay more than expected, expand their search farther away from their desired target, or choose a home that doesn't check all of their boxes.

How has the pandemic affected Austin’s housing market, for better or for worse?

There was a brief disruption to our business initially, but after about 30 days we adapted quite well. Sales were up 8% and dollar volume, boosted by higher prices, was up over 20%. Sales could have been higher, but were somewhat curtailed by anemic inventory levels, as demand held strong and many sellers not leaving the area were dissuaded by lack of move-up options. It's quite easy to find buyers, most of whom are eager to meet and aim to secure the ever-elusive Central Texas dream of homeownership. Many sellers are gathering data and screening agents carefully before inviting them into their homes. I think they are still OK with masked face-to-face meetings but are not as frequently interviewing multiple agents in their home.

Home prices appear to be going up, with no immediate end in sight. What’s your experience on the ground in light of surging home prices?

It is hyper competitive right now. We are seeing 10-50 offers on desirable properties from $300,000 to $1 million right now, with homes sometimes selling for 105-120% of list price. One positive thing is that the trajectory of the market should make buyers whole if they had to overpay to secure their purchase.

That said, it is tough for buyers right now, especially if they are buying a first home or coming from outside our market and don't have a local home to sell to help offset buying above list price. It's all good for sellers right now — sellers are the deal makers and buyers are the deal takers.

In light of your replies above, what’s the forecast of Austin home sales during the next two years?

I see more of the same: job growth coupled with owner occupant and investor demand will provide plenty of energy to keep inventory levels low, for the next two years. Builders are selling everything they have, sometimes well in advance of the planned start date. There is a significant lead time needed to accumulate more undeveloped lot inventory, and while they are working hard to scale their business, hiring, training and adding vendors to support efforts takes time. It will very likely be that rising prices and decreased affordability will be the primary factor bringing our market back into balance.

Where are most of the buyers coming from?

Most of the growth in the buyer market seems to be coming from relocation buyers following jobs here and investors wanting to participate in our red-hot market.

Parimal M. Rohit

Staff Writer

Austin Business Journal