Eleven Oaks Realty is proud to present their October 2022 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 7%
The biggest story this month: median home prices in Austin up, not as drastically as they have been in months past. But, still up more than the news will tell you. We hear in the median the market is tanking and prices are dropping, but here we are with another month of data to show prices are not dropping. In fact, buyers are paying more than they were last year despite the increase in interest rates. The median price of an Austin home in October 2021 was $585,000 compared to $628,500 in October 2022, up 7% ($43,500) 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 some light at the end of the seller’s market tunnel. We are trending towards a more balanced market and might be in a buyer’s market by the time January comes around. Buyers are getting more time to make a decision and they have more choices. They don’t feel the pressure to put their lives on hold to drop everything and run and see a house an hour after it is listed. It’s becoming much more business like. Buyers in the market are able to negotiate more favorable terms from sellers, which includes closing cost credits and price reductions. Two words we haven’t seen in 24+ months. Though buyers are still paying more this year, they’re able to negotiate better deals that will put them in a better position. If you’re looking to buy, take advantage of this market shift.
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, and they’re having to make some concessions. 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.
108% Increase in Time to Sell Home in Austin
In October 2022, it took 48 days to sell a home in Austin, on average, compared to 23 days in October 2021, marking a 108% (25 day) increase in year over year numbers. The median time to sell is 27 days, which is an 2 day increase from last month. It is no doubt taking longer for Austin homes to sell. But despite that, buyers are still willing to pay more than they were last year.
Number of Homes Taken Off the Market Saw a 210% Increase
In October 2022, there were 502 homes taken off the market compared to 162 in October 2021. This marked a 210% (340 home) increase in year over year numbers. Sellers are having a hard time adjusting to this new market. They heard stories of homes selling in a matter of minutes and when there’s doesn’t, they are taking their homes off the market. Some are renting them and others are deciding to stay in their homes and not move.
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 October 2021 to October 2022. In October 2022, we saw 550 homes sell in Austin compared to 911 in October 2021 marking a 40% (361 home) decrease in year over year numbers. The market has certainly slowed in the past few months.
345% Increase in Austin Housing Inventory
In October 2022, we saw 4.8 months of inventory on the market, compared to 1.1 months of inventory in October 2021, showing a 345% (3.7 month) increase in year over year numbers. We continue to trend towards a more balanced market. We typically see an even bigger slow down as we head into November and December and it will be interesting to see how much of one we see this year compared to years past.
Austin Homes Under Contract Saw a 51% Decrease
In October 2022, 542 homes went pending (under contract) in Austin compared to 1,114 in October 2021, marking a 51% (572 home) decrease in year over year numbers.
47% Increase in Number of Homes on the Market
In October 2022, we had 3,659 homes for sale in Austin, compared to 2,483 in October 2021, showing a 47% (1,176 home) increase in year over year numbers. Buyers are finally getting the inventory they’ve been wanting.
17% Decrease in Number of Homes Listed for Sale
In October 2022, we saw 937 homes introduced to the market compared to 1,132 in October 2021, marking a 17% (195 home) decrease in year over year numbers.
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). This increase in supply and decrease in demand is what’s giving buyers the relief they so desperately needed.
Median for Sale Up 11% vs Median Sold Price Up 7%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 11% increase in the median for sale price and a 7% increase in the median sold price of single family homes in year over year numbers. The median price of a for sale home in October 2021 was $609,900 compared to $674,900 in October 2022. The median sold price of a home in October 2021 was $585,000 compared to $628,500 in October 2022.
Source: Clarus Market Metrics, ACTRIS Sold Data
October 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 October 2022 Austin home sales below. The most expensive home that sold in October 2022 sold for $10,700,000 and the least expensive home sold for $225,000. Homes ranged in size from 540 sqft – 8,215 sqft with an average size of 2,209 sqft. The average price per square foot for a home that sold in Austin in October 2022 was $372.51 with the lowest being $155.42/sqft and the highest being $1,522.26/sqft. It took, on average, 38 days to sell a home in Austin and sellers received, on average, 92.75% 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||October 2022|
|Property Type||Single Family Homes||Number Sold||550|
|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 more balanced market, we are quickly approaching a buyers market, which is something we haven’t seen in a decade. 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 October 2022 Austin Real Estate Price Report?
Do you have questions about our October 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.
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