Eleven Oaks Realty is proud to present their May 2022 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 15%
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 again saw increases in month over month numbers as well. The median price of an Austin home in May 2021 was $640,000 compared to $737,250 in May 2022, up 15% ($97,250) 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 really feeling the pinch. Though activity is down, interest rates are up, which means affordability is down. Even though we saw a bump in interest rates, we are still seeing prices go up. We are not seeing the multiple offers and overbids within hours of listing quite as often as we were, so buyers are facing less competition. Some buyers are using this as an opportunity to get into the market and are either using some creative financing or they are taking the hit on the interest rate figuring they will refinance when rates go back down.
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.
28% Increase in Time to Sell Home in Austin
In May 2022, it took 11 days to sell a home in Austin, on average, compared to 8 days in May 2021, marking a 28% (2 day) increase in year over year numbers. Though it is taking buyers a few more days to make decisions, it hasn’t increased as much as was predicted when interest rates increased. It will be interesting to see what the summer months bring.
Number of Homes Taken Off the Market Saw a 74% Increase
In May 2022, there were 134 homes taken off the market compared to 77 in May 2021. This marked a 74% (57 home) increase in year over year numbers. It seems sellers got spooked with the increase in interest rates and took their homes off the market. We did see buyers pause as well, so the fact that sellers weren’t getting multiple offers well above list price and were instead seeing the need to reduce their prices, they decided to take it off and see where the market goes in the next few months rather than continue to reduce. Not all homes required a price reduction, but many of them that were priced above the comps did.
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 9% Decrease
Austin saw a 9% decrease in the number of homes sold comparing May 2021 to May 2022. In May 2022, we saw 1,042 homes sell in Austin compared to 1,150 in May 2021 marking a 9% (108 home) decrease in year over year numbers. With interest rates rising like they did, I’m surprised we didn’t see a bigger drop off in number of sold homes. This comparatively small reduction in home sales shows how strong our market still is.
98% Increase in Austin Housing Inventory
In May 2022, we saw 1.1 months of inventory on the market, compared to 0.5 months of inventory in May 2021, showing a 98% (0.5 month) increase in year over year numbers. We have been seeing inventory numbers increase since January. We typically see the trend go the other way, but I’m sure the increase in interest rates have scared some buyers out of the market. Or, if nothing else, changed what they could ultimately afford.
Austin Homes Under Contract Saw a 16% Decrease
In May 2022, 1,036 homes went pending (under contract) in Austin compared to 1,227 in May 2021, marking a 16% (191 home) decrease in year over year numbers.
16% Increase in Number of Homes on the Market
In May 2022, we had 2,286 homes for sale in Austin, compared to 1,970 in May 2021, showing a 16% increase in year over year numbers.
10% Increase in Number of Homes Listed for Sale
In May 2022, we saw 1,455 homes introduced to the market compared to 1,322 in May 2021, marking a 10% (133 home) increase in year over year numbers. We did see an increase from last month, which is what we’d expect as we head deeper into Spring.
Supply Up 16% and Demand Down 9%
This month we saw a 16% increase in supply (number of properties for sale) and a 9% decrease in demand (number of sold properties).
Median for Sale Up 21% vs Median Sold Price Up 15%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 21% increase in the median for sale price and an 15% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
May 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 May 2022 Austin home sales below. The most expensive home that sold in May 2022 sold for $12,250,000 and the least expensive home sold for $225,000. Homes ranged in size from 602 sqft – 8,048 sqft with an average size of 2,157 sqft. The average price per square foot for a home that sold in Austin in May 2022 was $432.61 with the lowest being $133.93/sqft and the highest being $1,583.33/sqft. It took, on average, 11 days to sell a home in Austin and sellers received, on average, 105.81% 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||May 2022|
|Property Type||Single Family Homes||Number Sold||1,043|
|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 are still 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 our May 2022 Austin Real Estate Price Report?
Do you have questions about our May 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.