Eleven Oaks Realty is proud to present their March 2023 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Saw an 15% Decrease
The biggest story this month: median home prices have dropped and this time pretty significantly. After years of continual price increases, no matter what the economic climate, we have finally seen it break for the second month in a row. The median price of an Austin home in March 2022 was $582,500 compared to $687,695 in March 2023, down $105,195 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? As we kick off spring, prices are going in the opposite direction of where we usually see them, which should be welcome news to buyers. News that they probably never thought they’d see after the last few years monitoring the market. If you’re looking to get in the market, now is the time. Prices are coming down and sellers are more motivated to get their homes sold. And, with less competition, you will be more likely to find the house you like instead of settling for the house you won in a bidding war.
What does this mean to sellers? Though prices are decreasing, we are still seeing them higher than they were when most sellers bought and considerably so. Despite interest rates rising, we still see less than three months of inventory on the market, which indicates a sellers market. If you’re looking to sell, know it’s going to take a little bit more time, but buyers are out there. Homes are selling, just not at the same rate as they were last year and it is taking them a little longer. If you’re looking to sell, be patient and know you only need one buyer, not 20.
338% Increase in Time to Sell Home in Austin
In March 2023, it took 48 days to sell a home in Austin, on average, compared to 11 days in March 2022, marking a 338% (37 day) increase in year over year numbers. The median time to sell is 31 days, which is a 24 day decrease from last month. Though it is taking longer to sell, homes are still selling faster than they were last month. It just means that patience is key in this market.
Number of Homes Taken Off the Market Saw a 220% Increase
In March 2023, there were 205 homes taken off the market compared to 64 in March 2022. This marked a 220% (141 home) increase in year over year numbers. Despite entering the busiest time of year, historically, sellers have less confidence in the market than they did last year. And, with good reasons. Prices are down and homes are taking longer to sell.
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 29% Decrease
Austin saw a 29% decrease in the number of homes sold comparing March 2022 to March 2023. In March 2023, we saw 681 homes sell in Austin compared to 953 in March 2022 marking a 29% (272 home) decrease in year over year numbers. We have certainly seen a reduction in number of homes sold in Austin.
247% Increase in Austin Housing Inventory
In March 2023, we saw 2.3 months of inventory on the market, compared to 0.7 months of inventory in March 2022, showing a 247% (1.7 month) increase in year over year numbers. Though we have seen an increase over the past year in inventory, we are still in seller’s market territory.
Austin Homes Under Contract Saw a 14% Decrease
In March 2023, 855 homes went pending (under contract) in Austin compared to 997 in March 2022, marking a 14% (142 home) decrease in year over year numbers.
77% Increase in Number of Homes on the Market
In March 2023, we had 3,066 homes for sale in Austin, compared to 1,735 in March 2022, showing a 77% (1,331 home) increase in year over year numbers. Buyers have more choices this year than they’ve had in many years past.
6% Increase in Number of Homes Listed for Sale
In March 2023, we saw 1,332 homes introduced to the market compared to 1,260 in March 2022, marking a 6% (72 home) decrease in year over year numbers.
Supply Up 77% and Demand Down 29%
This month we saw a 77% increase in supply (number of properties for sale) and a 29% decrease in demand (number of sold properties). This increase in supply and decrease in demand is what’s giving buyers the relief they so desperately needed.
Median for Sale Up 1% vs Median Sold Price Down 15%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 1% increase in the median for sale price and a 15% decrease in the median sold price of single family homes in year over year numbers. The median price of a for sale home in March 2022 was $695,000 compared to $700,000 in March 2023. The median sold price of a home in March 2022 was $687,695 compared to $582,500 in March 2023.
Source: Clarus Market Metrics, ACTRIS Sold Data
March 2023 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 2023 Austin home sales below. The most expensive home that sold in March 2023 sold for $9,295,500 and the least expensive home sold for $190,000. Homes ranged in size from 672 sqft – 8,357 sqft with an average size of 2,163 sqft. The average price per square foot for a home that sold in Austin in March 2023 was $351.21 with the lowest being $147.90/sqft and the highest being $3,123.77/sqft. It took, on average, 61 days to sell a home in Austin and sellers received, on average, 92.63% 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 2023|
|Property Type||Single Family Homes||Number Sold||684|
|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 in a sellers market, we are trending more towards a balanced market. 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. And, we are seeing prices come down, despite us entering the busy spring home buying season. Though not a perfect market for buyers, it’s sure a much more favorable one than we’ve seen in the last several years.
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.
If you need to sell, don’t be discouraged. Know it’s going to take a little more time, but also know that if you stick it out, you’ll be successful. 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.
Questions About the March 2023 Austin Real Estate Price Report?
Do you have questions about our March 2023 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.
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