Eleven Oaks Realty is proud to present their December 2021 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. Though we hear talking heads say our market has slowed, we aren’t seeing any slow down in prices. They continue to go up, and usually pretty significantly when you look at year over year numbers. We are still seeing multiple offers on many homes, which is driving prices even higher. Though we just went through a seasonal slow down, which is to be expected at the end of the year, we didn’t see prices go any other direction but up. The median price of an Austin home in December 2020 was $510,000 compared to $600,000 in December 2021, up 18% ($90,000) 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? If you’re waiting for the floor to fall out and prices to go down, I don’t see it happening. Might it slow down? It might. Will it tank? I’m just not seeing those signs. With daily announcements of large companies moving to the Austin area and investors taking advantage of what they see as the next Silicon Valley, it’s looking like the best we can hope for is to stabilize. With median price at $600k, we are $175k higher than we were two years ago. For the same houses. Buyers can’t save faster than prices are going up. So if you want to buy a home in Austin before they become only affordable to those making the highest salaries, I suggest you start your search now. If Austin is already out of your reach, try one of the northern or southern suburbs. Though prices are also going up there, they started lower, so they’re not quite up to city of Austin heights just yet. Not quite sure how to navigate a market like this? Hire a buyer’s agent who will work for you. Think it will cost you a fortune? It won’t. A buyer’s agent’s fee is paid by the seller, so you pay nothing more than what you’ve agreed to pay the seller.
What does this mean to sellers? With inventory at just under 1 month, we are in an extreme seller’s market. Though you’ll see demand is down, 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.
28% Increase in Time to Sell Home in Austin
In December 2021, it took 32 days to sell a home in Austin, on average, compared to 25 days in December 2020, marking a 28% (7 day) increase in year over year numbers. This December seemed to slow down more than previous years. Not in terms of prices, but more in the sense of it taking longer for buyers to make a decision on a home. The median time to sell a home in Austin was only 10 days, which is more representative of how quickly the market is moving.
Number of Homes Taken Off the Market Saw a 32% Increase
In December 2021, there were 140 homes taken off the market compared to 106 in December 2020. This marked a 32% (34 home) increase in year over year numbers. Though we are seeing many homes get offers quickly, we are seeing another bucket of homes that are grossly overpriced and are sitting. The biggest culprits of this are sellers like OpenDoor, OfferPad and Zillow Homes who purchased homes for above market and now are trying to recoup some of their losses. Pull up what’s for sale on a Monday or Tuesday when the hot homes that lasted a weekend are pending and see what’s still for sale. Often times it’s nothing but homes from these companies. Why? Because they’ve priced above the market and now are waiting for a sucker to pay what they’re asking. Same happens with a regular seller. This market is hot, but buyers are still discriminatory in what they’ll overpay for. I’ve also heard many sellers testing the market and trying for some way over the top offer. If they don’t get it, they’ll just take their home off the market. Then, those homes will get counted in the expired listings bucket. Hard to say whether these home sellers actually wanted to sell or if they wanted to get a windfall and when they didn’t get it, they gave up rather than reduce the price to a more reasonable number.
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 13% Decrease
Austin saw a 13% decrease in the number of homes sold comparing December 2020 to December 2021. In December 2021, we saw 984 homes sell in Austin compared to 1,132 in December 2020 marking a 13% (148 home) decrease in year over year numbers. Though we are seeing fewer sales, I do not believe it is because we have less demand. I believe it’s because we have less supply. Home buyers and investors alike are waiting in the wings to scoop up something they see as a value. We will see in spring when supply goes up, how sales will respond.
30% Increase in Austin Housing Inventory
In December 2021, we saw 0.8 months of inventory on the market, compared to 0.6 months of inventory in December 2020, showing a 30% (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. Though the percentages seem high, 0.8 months of inventory is certainly not high, just a bit higher than at this time last year. And, take out the overpriced Zillow, OpenDoor and OfferPad homes and you’ll see we have even less inventory.
Austin Homes Under Contract Saw a 14% Decrease
In December 2021, 679 homes went pending (under contract) in Austin compared to 788 in December 2020, marking a 14% (109 home) decrease in year over year numbers. Again, with more inventory, I believe we’d see quite a few more home sales.
1% Decrease in Number of Homes on the Market
In December 2021, we had 1,372 homes for sale in Austin, compared to 1,387 in December 2020, showing a 1% (15 home) decrease in year over year numbers. With such a small difference we are basically sitting at the same spot as we were last year in terms of number of homes for sale.
21% Decrease in Number of Homes Listed for Sale
In December 2021, we saw 513 homes introduced to the market compared to 650 in December 2020, marking a 21% (137 home) decrease in year over year numbers. As prices continue to increase, I believe we’ll see this trend of fewer homes for sale continue. Sellers who want to sell are worried they won’t be able to find a new home, so they’re staying put. And as the gap between home prices 2 years ago and home prices now becomes wider, I believe more and more sellers will face this challenge and decide to stay put.
Supply Down 1% and Demand Down 13%
This month we saw a 1% decrease in supply (number of properties for sale) and a 13% decrease in demand (number of sold properties). This decrease in demand is misleading because there is definitely demand. When a house is listed and gets 25+ offers in a weekend, you can’t say there isn’t demand. The issue here, as we’ve been saying, is lack of supply.
Median for Sale Up 3% 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 3% 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. These figures show buyers are willing to pay more than list price for homes they see as a value.
Source: Clarus Market Metrics, ACTRIS Sold Data
December 2021 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for December 2021 Austin home sales below. The most expensive home that sold in December 2021 sold for $6,850,000 and the least expensive home sold for $240,000. Homes ranged in size from 672 sqft – 9,422 sqft with an average size of 2,127 sqft. The average price per square foot for a home that sold in Austin in December 2021 was $372.63 with the lowest being $137.31/sqft and the highest being $2,036.20/sqft. It took, on average, 23 days to sell a home in Austin and sellers received, on average, 100.35% 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||December 2021|
|Property Type||Single Family Homes||Number Sold||988|
|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, so affordability is not as affected as it would have been in year’s past. Though we are seeing multiple offers, overbids and lines to get into properties, payments are not what they would have been had interest rates remained in the 5%’s. 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 Austin Real Estate Price Report?
Do you have questions about this 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.