Eleven Oaks Realty is proud to present their July 2022 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 8%
The biggest story this month: median home prices in Austin up, as they have been for months, really more like years at this point. Despite increases in interest rates, decrease in demand and increase in time to sell, we still saw prices up from last years numbers. The median price of an Austin home in July 2021 was $650,000 compared to $700,000 in July 2022, up 8% ($50,000) 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 are starting to see the light at the end of the tunnel Though they took a hit with interest rates, they are starting to see more options and less competition. And, interest rates are starting to come down again. Time to sell is up, so buyers are getting a bit more time to make decisions. And, we are even seeing some able to negotiate off list price. Multiple offers are still out there, but they aren’t on every single house. If interest rates are stopping you, remember you can always refinance when the rates go back down. And, when rates go back down, I would expect we see another increase in demand, which will lead to rising prices. So, now might be the perfect storm to get something you actually want to live in and not settle for the house you won when you get frustrated of the bidding wars.
What does this mean to sellers? Even though rates are up, buyers are still in the market. Sellers can’t price as aggressively as they have been able to in months past, but they are still getting more for their homes this year than last. It might require some additional patience, but buyers are out there. Be patient, don’t get spooked if you don’t have 10 offers in the first weekend and prepare your home to meet the market. Homes are still selling for top dollar to those sellers who do the work to get their homes ready.
102% Increase in Time to Sell Home in Austin
In July 2022, it took 25 days to sell a home in Austin, on average, compared to 13 days in July 2021, marking a 102% (13 day) increase in year over year numbers. Typically we see time to sell go down in the summer, but this year’s interest rates and inflation have caused the opposite effect. The median time to sell is 10 days, which is a 4 day increase from last month. Buyers are definitely taking their time to make a move on the right house.
Number of Homes Taken Off the Market Saw a 165% Increase
In July 2022, there were 400 homes taken off the market compared to 151 in July 2021. This marked a 165% (249 home) increase in year over year numbers. Some sellers are getting a little concerned about decreased showings and activity in the market. Just a few months ago nearly everything had multiple offers in a few hours. Now we are seeing homes sit for considerably longer. But, as you can see in the median price category, prices are going up. So sellers taking their homes on the market are probably doing so before giving it enough time.
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 40% Decrease
Austin saw a 40% decrease in the number of homes sold comparing July 2021 to July 2022. In July 2022, we saw 721 homes sell in Austin compared to 1,203 in July 2021 marking a 40% (482 home) decrease in year over year numbers. As buyers navigate the new market, they are reevaluating their options.
227% Increase in Austin Housing Inventory
In July 2022, we saw 3.5 months of inventory on the market, compared to 1.1 months of inventory in July 2021, showing a 227% (2.4 month) increase in year over year numbers. This year we have seen the opposite effect on inventory as the year progresses on. We typically see inventory go down through the summer, but this year we’ve seen it go up. This indicates buyers have started to pause their searches and sellers are still trying to get their homes sold.
Austin Homes Under Contract Saw a 39% Decrease
In July 2022, 708 homes went pending (under contract) in Austin compared to 1,106 in July 2021, marking a 36% (398 home) decrease in year over year numbers.
47% Increase in Number of Homes on the Market
In July 2022, we had 3,583 homes for sale in Austin, compared to 2,440 in July 2021, showing a 47% increase in year over year numbers. For the first time in a while, buyers have more choices and more time to make a decision.
2% Decrease in Number of Homes Listed for Sale
In July 2022, we saw 1,524 homes introduced to the market compared to 1,551 in July 2021, marking a 2% (27 home) decrease in year over year numbers. We saw numbers decrease from last month as well, which is typical as we head deeper into summer.
Supply Up 47% and Demand Down 40%
This month we saw a 47% increase in supply (number of properties for sale) and a 40% decrease in demand (number of sold properties). For the first time in a long time we have more supply than demand. We’re still in a seller’s market, but quickly approaching a balanced market.
Median for Sale Up 13% vs Median Sold Price Up 8%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 13% increase in the median for sale price and an 8% increase in the median sold price of single family homes in year over year numbers. The median price of a for sale home in July 2021 was $625,000 compared to $705,000 in July 2022. The median sold price of a home in July 2021 was $650,000 compared to $700,000 in July 2022.
Source: Clarus Market Metrics, ACTRIS Sold Data
July 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 July 2022 Austin home sales below. The most expensive home that sold in July 2022 sold for $5,425,000 and the least expensive home sold for $305,000. Homes ranged in size from 640 sqft – 6,604 sqft with an average size of 2,159 sqft. The average price per square foot for a home that sold in Austin in July 2022 was $412.84 with the lowest being $143.60/sqft and the highest being $1,698.48/sqft. It took, on average, 13 days to sell a home in Austin and sellers received, on average, 102.60% 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||July 2022|
|Property Type||Single Family Homes||Number Sold||721|
|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 buy. Though we are still in a seller’s market, we are quickly approaching a balanced market, which is something we haven’t seen in YEARS. There are more homes on the market, less competition and sellers who are eager to sell. We are seeing price reductions, homes sit on the market for more than a few days and even homes coming back on the market.
If you need to sell, don’t be discouraged. No, we aren’t seeing 20 offers in 15 minutes, but we are still seeing well qualified buyers looking for a home. Since you can’t sell to 20 buyers anyway, 1 or 2 qualified buyers should be all you need. 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 July 2022 Austin Real Estate Price Report?
Do you have questions about our July 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.