Eleven Oaks Realty is proud to present their March 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. Prices are continuing to go up significantly in year over year numbers and steadily in month to month numbers. Even early in spring this year, we are seeing price jumps and this month is no different. The median price of an Austin home in March 2021 was $585,000 compared to $687,695 in March 2022, up 18% ($102,695) 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 think prices are going down are probably going to be pretty disappointed if they keep waiting. Prices have gone up significantly for years now. And, recently they’re going up around 15-20% per year and a few percent per month. Plus, we are now seeing interest rates creep up, which is increasing monthly payments. So, not only do we have prices increasing, but monthly payments as well, which is going to affect affordability if that trend continues. If you want to be a homeowner in Austin and you’re seeing affordability head towards levels that would make it unaffordable for you, don’t wait. Get in the market now and lock in your mortgage payment.
What does this mean to sellers? With inventory at 1/2 month, we are in an extreme seller’s market. Though we see a slight decrease in demand, it is purely because of lack of supply. Buyers are out there and they want to buy. If you price your home right, have professional photos taken and prepare it to meet it’s new owner, you’ll see just how demand is not down. Homes that are priced right and presented well very often receive multiple offers. We are now entering the busiest time of year, so get your home ready now and you’ll be ready when even more buyers decide to buy.
19% Increase in Time to Sell Home in Austin
In March 2022, it took 12 days to sell a home in Austin, on average, compared to 10 days in March 2021, marking an 19% (2 day) increase in year over year numbers. Homes are moving quickly. Often much quicker than 12 days. The median time to sell a home in Austin was only 5 days, which is more representative of how quickly the market is moving. And, with the increase in demand we usually see in spring/early summer, I would expect that number to trend downward next month.
Number of Homes Taken Off the Market Saw a 35% Increase
In March 2022, there were 84 homes taken off the market compared to 62 in March 2021. This marked a 35% (22 home) increase in year over year numbers. My suspicion is this increase in homes taken off the market were from sellers who listed at the very top of the market and rather than reduce their list price, they’ll take it off the market, wait a few months and try again. Because there is definitely pent up demand that the market hasn’t served yet.
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 1% Decrease
Austin saw a 1% decrease in the number of homes sold comparing March 2021 to March 2022. In March 2022, we saw 937 homes sell in Austin compared to 947 in March 2021 marking a 1% (10 home) increase in year over year numbers. This “decrease” in home sales is more due to decrease in supply versus a decrease in demand. There are buyers out there – both primary and investment buyers – that want to buy something. They just haven’t won the bidding wars yet.
76% Increase in Austin Housing Inventory
In March 2022, we saw 0.6 months of inventory on the market, compared to 0.3 months of inventory in March 2021, showing a 76% (0.2 month) increase in year over year numbers. With inventory levels at less than 1 month, we are in extreme seller’s market territory. It seems sellers have settled into our new market reality and are not as afraid to list their homes. Last year, sellers were hesitant because they weren’t sure they’d find something. This year, they are taking advantage of the long leasebacks buyers are willing to offer and getting their homes listed for sale.
Austin Homes Under Contract Saw a 21% Decrease
In March 2022, 1,021 homes went pending (under contract) in Austin compared to 1,291 in March 2021, marking a 21% (270 home) decrease in year over year numbers. Again, with more inventory, I believe we’d see quite a few more home sales.
5% Decrease in Number of Homes on the Market
In March 2022, we had 1,684 homes for sale in Austin, compared to 1,769 in March 2021, showing a 5% decrease in year over year numbers.
5% Decrease in Number of Homes Listed for Sale
In March 2022, we saw 1,2642 homes introduced to the market compared to 1,334 in March 2021, marking a 5% (70 home) decrease in year over year numbers. This is still an increase in last month’s numbers, which is what we’d expect as head into spring.
Supply Down 5% and Demand Down 1%
This month we saw a 5% decrease in supply (number of properties for sale) and a 1% decrease in demand (number of sold properties). With supply down, it’s no wonder demand is down. There aren’t enough homes to meet the current buyer demand.
Median for Sale Up 17% vs Median Sold Price Up 18%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 17% increase in the median for sale price and an 18% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
March 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 March 2022 Austin home sales below. The most expensive home that sold in March 2022 sold for $5,300,000 and the least expensive home sold for $285,000. Homes ranged in size from 529 sqft – 10,730 sqft with an average size of 2,204 sqft. The average price per square foot for a home that sold in Austin in March 2022 was $401.99 with the lowest being $165.40/sqft and the highest being $1,654.97/sqft. It took, on average, 17 days to sell a home in Austin and sellers received, on average, 107.09% 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||March 2022|
|Property Type||Single Family Homes||Number Sold||938|
|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 in extreme seller’s market territory, and are heading into one of the busiest times of the year. Take advantage of the frenzy of home buyers that are about to get into the market. Prepare your home to sell now so you are ready when they are. If you have a home to buy, it might be best to try to find that first and then list your home for sale. Or, plan to move into temporary housing to give yourself some extra time to find what you’re looking for.
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, keep in mind interested rates are still low but going up, so affordability might be about to change drastically. As rates get into the 5%’s, payments will change and you’ll be able to buy much less than you would be in terms of a monthly number. Get your ducks in a row now and take advantage of rates where they are today. Buyers who act quickly will have a jump on others who are taking their time. If you set alerts, check out new listings as soon as they’re listed and are prepared to make offers, you’ll beat other buyers to the best homes. And, if you’re ready to act, you can make an offer before the competition has time to see it. The best homes are still selling quickly, especially since there are fewer overall choices. You’ll want to give yourself ample time to make a decision. Get your search set up and start looking at new listings now. If you’re looking to buy, we can help you be successful. We know the market and know how to get the best deal for a buyer. For more info about buying a home, visit Buy a Home in Austin.
Questions About the March 2022 Austin Real Estate Price Report?
Do you have questions about the March 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.