Eleven Oaks Realty is proud to present their September 2022 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 5%
The biggest story this month: median home prices in Austin up, not as drastically as they have been in months past. But, still up. This increase says a lot about the strength of our market that despite interest rate hikes and inflation, increase in supply and decrease in demand, we are still seeing prices increase from last year. The median price of an Austin home in September 2021 was $585,500 compared to $617,500 in September 2022, up 5% ($32,000) 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 be able to negotiate some more favorable terms. Though we are still in a market that favors sellers, buyers who have been doing this for a minute know that we are seeing some relief. Time to sell is increasing every month, which is making sellers a little uneasy. In order to be successful and get their homes sold, they are willing to make more concessions than they have been in months past. Though buyers are still paying more this year, they aren’t having to settle for the home they win in a bidding war. Instead, they’re able to be a little more selective and ask for some help with closing costs and rate buy downs. If you can absorb the interest rate hike, you can refinance later when rates settle down. You might pay more monthly for a while, but you’ll have the house you want. If you were waiting for market forces to turn in your favor, now is the time to start your search. In this strong market, there is no telling how long these favorable conditions for buyers will last.
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.
103% Increase in Time to Sell Home in Austin
In September 2022, it took 42 days to sell a home in Austin, on average, compared to 20 days in September 2021, marking a 103% (21 day) increase in year over year numbers. The median time to sell is 25 days, which is an 8 day increase from last month. We are seeing increased time to sell a little earlier in the year this year than we have in years past which is due to the shifting market and increased interest rates.
Number of Homes Taken Off the Market Saw a 150% Increase
In September 2022, there were 432 homes taken off the market compared to 173 in September 2021. This marked a 150% (259 home) increase in year over year numbers. Sellers who haven’t bought into this new market are getting spooked, and in my opinion, they’re doing so prematurely. Buyers are taking more time to make decisions and they’re not running out to look at houses within hours that they’re listed. But, they are buying and they are buying for more than last year. If you have a house to sell, give it a little more time before deciding to pull the plug.
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 39% Decrease
Austin saw a 39% decrease in the number of homes sold comparing September 2021 to September 2022. In September 2022, we saw 661 homes sell in Austin compared to 1,086 in September 2021 marking a 39% (425 home) decrease in year over year numbers. Interest rates have priced some buyers out of the market and virtually all investors who aren’t putting more than 50% down. So, it’s not surprising we are seeing a decrease in home sales.
197% Increase in Austin Housing Inventory
In September 2022, we saw 4.2 months of inventory on the market, compared to 1.4 months of inventory in September 2021, showing a 197% (2.8 month) increase in year over year numbers. This month we are creeping into a more balanced market, which should make buyers happy as they are once again able to negotiate to get some favorable terms on their side of the table.
Austin Homes Under Contract Saw a 34% Decrease
In September 2022, 620 homes went pending (under contract) in Austin compared to 945 in September 2021, marking a 34% (325 home) decrease in year over year numbers.
49% Increase in Number of Homes on the Market
In September 2022, we had 3,674 homes for sale in Austin, compared to 2,462 in September 2021, showing a 49% increase in year over year numbers. Again, buyers should be pleased to see they have more choices than they have at any time in the past year, so they don’t just have to keep bidding on anything that is listed.
7% Decrease in Number of Homes Listed for Sale
In September 2022, we saw 1,198 homes introduced to the market compared to 1,294 in September 2021, marking a 7% (96 home) decrease in year over year numbers. We did see a slight uptick from last month’s numbers, which is something we typically see. August is always a slow month for new listings.
Supply Up 49% and Demand Down 39%
This month we saw a 49% increase in supply (number of properties for sale) and a 39% 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 13% vs Median Sold Price Up 5%
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 a 5% increase in the median sold price of single family homes in year over year numbers. The median price of a for sale home in September 2021 was $607,091 compared to $685,000 in September 2022. The median sold price of a home in September 2021 was $585,500 compared to $617,500 in September 2022.
Source: Clarus Market Metrics, ACTRIS Sold Data
September 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 September 2022 Austin home sales below. The most expensive home that sold in September 2022 sold for $6,300,000 and the least expensive home sold for $230,000. Homes ranged in size from 676 sqft – 8,065 sqft with an average size of 2,133 sqft. The average price per square foot for a home that sold in Austin in September 2022 was $367.13 with the lowest being $120.89/sqft and the highest being $1,220.50/sqft. It took, on average, 34 days to sell a home in Austin and sellers received, on average, 93.03% 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||September 2022|
|Property Type||Single Family Homes||Number Sold||665|
|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 slight 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 September 2022 Austin Real Estate Price Report?
Do you have questions about our September 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.