Eleven Oaks Realty is proud to present their April 2022 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 18%
The biggest story this month: median home prices in Austin up, as they have been for months, really more like years at this point. Not only did we see increases in year over year numbers, we saw increases in month over month numbers as well. The median price of an Austin home in April 2021 was $636,000 compared to $706,130 in April 2022, up 11% ($70,130) in year over year numbers.
Median home price helps us see the distribution of homes sold and does not really give us an indication of the increase or decrease in a particular home’s market value. To analyze market value, we’d have to take an in depth look at a neighborhood. If you’re looking for something like that, please check out our Austin Home Values Report.
What does this mean to buyers? Buyers who waited for prices to go down got a triple hit this month. Not only are prices up 11%, we saw interest rate hikes to nearly 7% and assessed values were revealed by the counties. In many cases, assessed values of homes that did not have a Homestead Exemption rose sharply, which means property taxes went up significantly. Tax assessors have said they have been behind on increasing values and plan to be more aggressive, so we really can’t plan for those to come down. Combine price increases, interest rate hikes and property tax increases, buyers are looking around a $6,000/month mortgage payment for the median house versus about $3,000 when you look at where things were last year. Talk is interest rates are going to continue to rise, changing the affordability landscape even more. If you’re wanting to be a homeowner in the next few years and you don’t want to be priced out, it might make sense to lock something in now, take the hit on the interest rate and try to refinance as soon as rates come down.
What does this mean to sellers? Hard to say just yet as we only saw these significant market shifts in the last few weeks. Some buyers might not be phased by the increase in monthly payment. Others might be priced out. However, we are starting to see price reductions and homes come back on the market. Two things we rarely saw a month ago. Hopefully things will settle down and we will just be getting rid of investor demand, leaving homes for buyers who want to live there. Interest rates are at 10 year highs, so it will take a minute for buyers to readjust their thinking.
29% Increase in Time to Sell Home in Austin
In April 2022, it took 12 days to sell a home in Austin, on average, compared to 9 days in April 2021, marking a 29% (3 day) increase in year over year numbers. Remember time on market for closed homes in April are working off March market forces. So, it will be very interesting to see what time on market does next month to account for April’s market changes.
Number of Homes Taken Off the Market Saw a 16% Decrease
In April 2022, there were 64 homes taken off the market compared to 76 in April 2021. This marked a 16% (12 home) decrease in year over year numbers. It will be very interesting to see how this number changes next month.
If you need to sell and your home was priced right, maybe there was something else going on. The biggest culprits we see are incorrect info in the MLS and poor marketing. Check out our Austin Home Marketing Plan to see how your homes would be marketed.
Having trouble selling your home? Check out our Austin Home Not Selling resources page to find out why.
Number of Sold Homes in Austin Saw a 13% Decrease
Austin saw a 13% decrease in the number of homes sold comparing April 2021 to April 2022. In April 2022, we saw 946 homes sell in Austin compared to 1,093 in April 2021 marking a 13% (147 home) decrease in year over year numbers. For last month, I think this decrease was from not enough supply. We will see next month how the interest rate hike affected buyers.
35% Increase in Austin Housing Inventory
In April 2022, we saw 0.8 months of inventory on the market, compared to 0.6 months of inventory in April 2021, showing a 35% (0.2 month) increase in year over year numbers. With such a small increase, we can’t really make any assessment of what that might mean either way.
Austin Homes Under Contract Saw a 9% Decrease
In April 2022, 1,043 homes went pending (under contract) in Austin compared to 1,146 in April 2021, marking a 9% (103 home) decrease in year over year numbers.
2% Increase in Number of Homes on the Market
In April 2022, we had 1,901 homes for sale in Austin, compared to 1,869 in April 2021, showing a 2% increase in year over year numbers.
11% Decrease in Number of Homes Listed for Sale
In April 2022, we saw 1,298 homes introduced to the market compared to 1,453 in April 2021, marking an 11% (155 home) decrease in year over year numbers. We did still see an increase from last month, however, which is what we’d expect as we head deeper into Spring.
Supply Up 2% and Demand Down 13%
This month we saw a 2% increase in supply (number of properties for sale) and a 13% decrease in demand (number of sold properties).
Median for Sale Up 18% vs Median Sold Price Up 11%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 18% increase in the median for sale price and an 11% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
April 2022 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for April 2022 Austin home sales below. The most expensive home that sold in April 2022 sold for $7,750,000 and the least expensive home sold for $260,000. Homes ranged in size from 624 sqft – 11,009 sqft with an average size of 2,137 sqft. The average price per square foot for a home that sold in Austin in April 2022 was $429.75 with the lowest being $161.66/sqft and the highest being $1,459.14/sqft. It took, on average, 13 days to sell a home in Austin and sellers received, on average, 107.37% of their original list prices.
|Beds||Baths||SqFt||List Price||LP/SqFt||Sold Price||SP/SqFt||SP/LP||SP/OLP||ADOM|
|Status||Sold||Sold Date||April 2022|
|Property Type||Single Family Homes||Number Sold||945|
|Source:||ABoR Sales Data||Area||Austin|
Time to Buy? Sell?
As we always say, the best time to buy or sell a home is when you need to buy or sell. If you have a house to buy, buying when its a sellers market may hurt you on the buying end, but you’ll make it up on the selling end. If you’re trying to get into the market for the first time, the only way you’ll know that we’ve “hit bottom” is when its in the rear view mirror. Work with professionals who can help you analyze your financial and lifestyle to determine if now is the right time to buy or sell.
Looking strictly at the numbers, it appears the recommendation for this month is – it’s time to sell. We are still in seller’s market territory, and are heading into one of the busiest times of the year. Though we did see a sharp increase in interest rates, homes still seem to be selling. Maybe not with the stacks of offers that they were a few months ago, but you only need one willing buyer. You don’t need 20.
If you’re a seller who needs to sell now, work with a professional Realtor who can help you position your home as the best value on the market. Check out our 88 Ways to Sell Your Home Faster and For More Money for some tips on how you can prepare your home to meet the market. For more info about our Home Selling Program and why it is the best in Austin, check out Sell My Austin Home.
If you’re looking to buy, get with a knowledgeable mortgage broker who can guide you to getting the lowest interest rate possible. We are starting to see the frenzy pause for a minute, as hesitant buyers wonder what to do. Take advantage of lower demand and get in before interest rates rise again. The best homes are still selling quickly, especially since there are fewer overall choices. If you’re looking to buy, we can help you be successful. We have experienced several market shifts in our careers and know how to navigate them. For more info about buying a home, visit Buy a Home in Austin.
Questions About the April 2022 Austin Real Estate Price Report?
Do you have questions about the April 2022 Austin Real Estate Price Report? Call us at (512) 827-8323 or email us at info@11OaksRealty.com and we’ll help you in any way we can. If you’re looking to buy or sell Austin real estate, don’t forget to check out our Buyer Resources and our Seller Resources for more tips.