Magnolia Real Estate Market Analysis for 2020

Hi friend! I know 2020 was an unprecedented year for everyone alive, but 2020 was an insane year in real estate, especially for the real estate market in the Greater Houston area. I was lucky enough to participate in the real estate market all of 2020, and it happened to be my greatest year, for which I am super grateful.

Today, I want to share with you what real estate looked like for 2020 by giving to statistics, and facts, with a dash of opinion and perspective. For this particular blog post, I will be focusing on Magnolia, Texas. Let's dive in. 

Links to other real estate market analyses: Katy TexasThe Woodlands TexasCypress TexasConroe TexasKingwood TexasSpring TexasKlein TexasMagnolia Texas, and Montgomery Texas. P.S. Email me if you would like an analysis for a particular neighborhood!

Magnolia Real Estate Market Analysis for 2020

In 2020, 1417 3+ bedrooms were sold in the city of Magnolia. The average year built for those homes was 2008. The average square footage was 2640. The average sales price was $361,781. The most expensive home sold in 2020 was $2,500,000. The average price per square foot was $134. The average lot size was 48,579 square feet. The list price to sales price was 98.15%. The median days on market was 40 days. 642 homes sold in 21 days or less, with the median days on market for those homes was 7 days. 335 homes sold in 6 days or less.

Magnolia vs. Other Area Markets

Compared to Katy:

name of city or neighborhood magnolia, texas vs. katy, texas
how many 3+ bedrooms sold 1417 6823
average year built 2008 2008
average square footage 2640 2,734
average sales price $361,781 $329,927
price most expensive home sold $2,500,000 $2,225,000
average price per square foot $134 $117
average lot size 48,579 9,043
list price to sales price 98.15% 98.19%
average asking price $369,440 $297,491
median days on market 40 36
how many sold in under 21 days 642 3,711
median dom for homes sold under 21 days 7 6
how many homes sold in less than 6 days 335 2,077

Compared to The Woodlands:

name of city or neighborhood magnolia, texas vs. the woodlands, texas
how many 3+ bedrooms sold 1417 2067
average year built 2008 2000
average square footage 2640 3264
average sales price $361,781 $536,842
price most expensive home sold $2,500,000 $6,000,000
average price per square foot $134 $154
average lot size 48,579 11,657
list price to sales price 98.15% 97.50%
average asking price $369,440 $558,787
median days on market 40 28
how many sold in under 21 days 642 1,085
median dom for homes sold under 21 days 7 6
how many homes sold in less than 6 days 335 607

Compared to Tomball:

name of city or neighborhood magnolia, texas vs. tomball, texas
how many 3+ bedrooms sold 1417 2143
average year built 2008 2008
average square footage 2640 2,608
average sales price $361,781 $313,059
price most expensive home sold $2,500,000 $2,473,237
average price per square foot $134 $119
average lot size 48,579 13,500
list price to sales price 98.15% 98.44%
average asking price $369,440 $319,192
median days on market 40 24
how many sold in under 21 days 642 1,113
median dom for homes sold under 21 days 7 6
how many homes sold in less than 6 days 335 639

Compared to Cypress:

name of city or neighborhood magnolia, texas vs. cypress, texas
how many 3+ bedrooms sold 1417 4,058
average year built 2008 2008
average square footage 2640 2845
average sales price $361,781 $338,158
price most expensive home sold $2,500,000 $1,816,425
average price per square foot $134 $118
average lot size 48,579 10,401
list price to sales price 98.15% 98.29%
average asking price $369,440 $345,551
median days on market 40 20
how many sold in under 21 days 642 2,248
median dom for homes sold under 21 days 7 5
how many homes sold in less than 6 days 335 1,307

Compared to Spring (6046 homes sold in all of "Spring", but data below excludes Spring ISD):

name of city or neighborhood magnolia, texas vs. spring, texas
how many 3+ bedrooms sold 1417 6046 (4951)
average year built 2008 2001
average square footage 2640 2,813
average sales price $361,781 $323,259
price most expensive home sold $2,500,000 $2,435,000
average price per square foot $134 $113
average lot size 48,579 10,528
list price to sales price 98.15% 98.41%
average asking price $369,440 $329,469
median days on market 40 22
how many sold in under 21 days 642 2725
median dom for homes sold under 21 days 7 6
how many homes sold in less than 6 days 335 1478

Compared to Klein (Klein ISD):

name of city or neighborhood magnolia, texas vs. klein, texas
how many 3+ bedrooms sold 1417 4312
average year built 2008 1998
average square footage 2640 2680
average sales price $361,781 $281,338
price most expensive home sold $2,500,000 $2,103,000
average price per square foot $134 $105
average lot size 48,579 9,836
list price to sales price 98.15% 98.50%
average asking price $369,440 $288,528
median days on market 40 20
how many sold in under 21 days 642 2449
median dom for homes sold under 21 days 7 6
how many homes sold in less than 6 days 335 1352

Compared to Kingwood:

name of city or neighborhood magnolia, texas vs. kingwood, texas
how many 3+ bedrooms sold 1417 1057
average year built 2008 1993
average square footage 2640 2824
average sales price $361,781 $314,194
price most expensive home sold $2,500,000 $1,640,000
average price per square foot $134 $108
average lot size 48,579 11,213
list price to sales price 98.15% 96%
average asking price $369,440 $321,677
median days on market 40 27
how many sold in under 21 days 642 543
median dom for homes sold under 21 days 7 6
how many homes sold in less than 6 days 335 304

Compared to Conroe:

name of city or neighborhood magnolia, texas vs. conroe, texas
how many 3+ bedrooms sold 1417 3,295
average year built 2008 2007
average square footage 2640 2,438
average sales price $361,781 $289,416
price most expensive home sold $2,500,000 $11,797,504
average price per square foot $134 $119
average lot size 48,579 21,562
list price to sales price 98.15% 97.44%
average asking price $369,440 $298,984
median days on market 40 39
how many sold in under 21 days 642 1,415
median dom for homes sold under 21 days 7 7
how many homes sold in less than 6 days 335 743

Compared to Montgomery:

name of city or neighborhood magnolia, texas vs. montgomery, texas
how many 3+ bedrooms sold 1417 1817
average year built 2008 2009
average square footage 2640 2841
average sales price $361,781 $410,619
price most expensive home sold $2,500,000 $2,250,000
average price per square foot $134 $140
average lot size 48,579 27,598
list price to sales price 98.15% 97.94%
average asking price $369,440 $421,688
median days on market 40 49
how many sold in under 21 days 642 748
median dom for homes sold under 21 days 7 7
how many homes sold in less than 6 days 335 387

2019 vs. 2020

To really focus in on what happened in 2020, I decided to concentrate on homes between 3000 and 4000 square feet, and ones that went under contract in 10 days or less. The average sales price year over year, increased 11% from 2019 to 2020, with an average for all homes coming in at a 7% increase. In 2020, of the 611 homes that went pending in 7 days or less, 38% were at asking price or above and 17% were above asking price.

What has driven the market changes?

There are many things that have driven this change in market and most of them are probably obvious, so don't mind me here stating the obvious. The biggest factor for the increase in price, would have to be the low inventory coupled with the high demand. Low inventory, in some price points, has been an on-going problem since Hurricane Harvey hit in 2017. While Hurricane Harvey physically didn't affect Magnolia much, I don't think the under $600k market, when looking at all of the Houston area, has truly recovered from the aftermath of that national disaster. And each year after that, I think the national political climate has contributed to seller's reluctance to sell. Low inventory is also a result of more investors holding on to properties, and investors entering our market, making it hard to a first time home buyer to get in. Cash is king in real estate, and this has been a huge problem, as financed offers (especially first time home buyers and FHA buyers) are struggling to have their offer selected. The other large factor, is the increased desire to live in Magnolia. It is thought of as a breath of fresh air and an opportunity to own more. Most of the buyers in 2020 were relocation buyers, who were coming here for a new job opportunity, or for the pure fact that they were tired of their current home state. COVID-19 certainly had a huge impact on Magnolia market. 

What should we expect for 2021 in regards to Magnolia Real Estate Market?

Let's compare 10/25/2019 - 2/13/2020 and 10/25/2020 - 2/13/2021 to predict what the real estate market in Magnolia will look like for 2021.

104 (2000-3000 sqft) homes sold within the first bracket and 173 (2000-3000 sqft) homes within the second bracket. That is a 66% increase.

$121 a square foot with a median days on market of 58 days compared to $138 a square foot with a median days on market of only 25 days. That is a 14% increase. 

If we look at January (to date) 2020 vs January (to date) 2021, we see this:

year 2020 vs. 2021
homes sold 104 173
average price per square foot $121 $138
median days on market 58 25

As you can see, 2021 is off to an "on fire" start, which correlates with December being a record breaking month. That is a 14% increase from last year, and that days on market statistic, holy cow!

Big Take Aways

If you read nothing, but this paragraph, these are the take aways I want to share with you.

  1. Inventory is Magnolia is extremely low for the demand, but sales are up from the last two years.
  2. The good homes go under contract within 5-8 days.
  3. You can expect multiple offers, especially if the home is remodeled.
  4. Homes under $450k are known to sell for $10k - $20k over asking price.
  5. If you are financing your home purchase, offers with 20% or greater, with no contingencies including an appraisal waiver, a shorter (limited) option period, and a quick close are your only leg up when winning compared to a cash offer.
  6. The prices are up anywhere from 5-15%, depending on location and square footage, compared to last year.
  7. You will be paying an ultimate premium to purchase a home with a pool.
  8. Working with a local lender and experienced real estate agent is key!

Magnolia is Waiting for You

If you are looking to relocate to the area, we would love to meet you, and hear your story. Below you will find all of my contact information, as well as some homes for sale in the area. We truly look forward to hearing from you! P.S. Don't forget to check out our YouTube Channel!

If you are overwhelmed..

Now if you are feeling overwhelmed on where you should plant your roots, I would love to talk to you. You can schedule a call with me by click this link: http://byjoandco.com/call or just send us an email: [email protected].

There are some amazing communities all over the Houston suburbs. In this post, https://search.byjoandco.com/blog/best-neighborhoods-in-houston/, I deep dive into all the different suburbs/neighborhoods that you might want to consider, and why. There are many resources here, so please reach out if you are curious what to look at next! :)

Links to check out..

➟ Our YouTube Channel :: http://byjoandco.com/youtube
➟ How do property taxes work in Texas? :: http://byjoandco.com/propertytaxesintexas
➟ Things to do in The Woodlands :: http://byjoandco.com/inthewoodlands
➟ Safest Neighborhoods in Houston :: http://byjoandco.com/safesthouston
➟ Best Neighborhoods in Houston :: http://byjoandco.com/bestneighborhoods
➟ Houston Texas Where to Live :: http://byjoandco.com/houstontexaswheretolive

Thank you so much for trusting us.

- Jordan Marie Schilleci, REALTOR® & Owner, Jo & Co. Realty Group

What next?!

• Download our Moving to Texas ebook! http://byjoandco.com/movingtotexasebook.
• Schedule a phone call or appointment with us! http://byjoandco.com/appointment.
• Email us! [email protected].
• Looking for a buyer’s agent? Fill out our buyer questionnaire! http://byjoandco.com/q.
• Ready to find your dream home? Search, http://search.byjoandco.com.
• Subscribe to our YouTube Channel: http://byjoandco.com/youtube.

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We are a brokerage, real people, that do more for you, by being with you every step of the way, so that you plant your roots in the right soil.

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