Eleven Oaks Realty is proud to present their December 2022 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Down 4%
The biggest story this month: median home prices in Austin, for the first time in years, are trending downwards. Though the stats say “down”, 4% still might be a seasonal trend. But, it still remains very interesting that prices are only slightly less than what they were last year given higher interest rates and inflation we are seeing this year. This is a testament to how strong the Austin market is. The median price of an Austin home in December 2021 was $599,000 compared to $574,325 in December 2022, down 4% ($24,675) 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? Prices might be starting to stabilize. The next few months will be very interesting as we head into spring. Even if we don’t see prices fall dramatically, it’s looking like we aren’t going to see them rise as dramatically as they had been, so that should be a welcome relief for buyers. The market is trending more towards a balanced market and might get into a buyers market by the end of the spring buying season if we don’t see demand pick up. Buyers have more choices and are able to negotiate more than they have been in the past several months. Buyers who buy now might have a chance of actually liking their house versus just settling for the one they won in a bidding war. If you’re looking to buy in Austin, we haven’t seen a better time in years in terms of market forces that favor buyers.
What does this mean to sellers? Though prices are going down, we are still around the same as we were last year when the market was hot. So, 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.
89% Increase in Time to Sell Home in Austin
In December 2022, it took 61 days to sell a home in Austin, on average, compared to 32 days in December 2021, marking an 89% (29 day) increase in year over year numbers. The median time to sell is 40 days, which is an 5 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 near what they were willing to pay last year when the market was hot.
Number of Homes Taken Off the Market Saw a 384% Increase
In December 2022, there were 513 homes taken off the market compared to 106 in December 2021. This marked a 384% (407 home) increase in year over year numbers. It seems many more sellers got frustrated at the end of the year and took their homes off the market instead of trying to adjust the price. Given the increasing time to sell, it might be premature for sellers to take their homes off the market.
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 48% Decrease
Austin saw a 48% decrease in the number of homes sold comparing December 2021 to December 2022. In December 2022, we saw 533 homes sell in Austin compared to 1,032 in December 2021 marking a 48% (499 home) decrease in year over year numbers. The market has certainly slowed when you consider number of homes sold.
230% Increase in Austin Housing Inventory
In December 2022, we saw 3.3 months of inventory on the market, compared to 1.0 month of inventory in December 2021, showing a 230% (2.3 month) increase in year over year numbers. Though we see an increase from last year, we saw a significant drop off from November. Though some of this is due to buyer demand, much of it is due to the increase of sellers taking their homes off the market.
Austin Homes Under Contract Saw a 21% Decrease
In December 2022, 521 homes went pending (under contract) in Austin compared to 663 in December 2021, marking a 21% (142 home) decrease in year over year numbers.
93% Increase in Number of Homes on the Market
In December 2022, we had 2,777 homes for sale in Austin, compared to 1,441 in December 2021, showing a 93% (1,336 home) increase in year over year numbers. Buyers now have choices, something they haven’t had in years of shopping on the Austin real estate market.
9% Decrease in Number of Homes Listed for Sale
In December 2022, we saw 471 homes introduced to the market compared to 515 in December 2021, marking a 9% (44 home) decrease in year over year numbers.
Supply Up 93% and Demand Down 48%
This month we saw a 93% increase in supply (number of properties for sale) and a 48% 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 6% vs Median Sold Price Down 4%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 6% increase in the median for sale price and a 4% decrease in the median sold price of single family homes in year over year numbers. The median price of a for sale home in December 2021 was $615,990 compared to $650,000 in December 2022. The median sold price of a home in December 2021 was $599,000 compared to $574,325 in December 2022.
Source: Clarus Market Metrics, ACTRIS Sold Data
December 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 December 2022 Austin home sales below. The most expensive home that sold in December 2022 sold for $5,650,000 and the least expensive home sold for $225,000. Homes ranged in size from 720 sqft – 8,689 sqft with an average size of 2,169 sqft. The average price per square foot for a home that sold in Austin in December 2022 was $340.69 with the lowest being $87.39/sqft and the highest being $1,285.49/sqft. It took, on average, 52 days to sell a home in Austin and sellers received, on average, 89.59% 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 2022|
|Property Type||Single Family Homes||Number Sold||537|
|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 December 2022 Austin Real Estate Price Report?
Do you have questions about our December 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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