Eleven Oaks Realty is proud to present their February 2022 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 10%
The biggest story this month: median home prices in Austin up, as they have been for months, really more like years at this point. Prices are continuing to go up significantly in year over year numbers and steadily in month to month numbers. If spring is like any of our previous spring markets, we should see an even bigger increase then as well. The median price of an Austin home in February 2021 was $562,500 compared to $620,000 in February 2022, up 10% ($57,500) 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 who think prices are going down are probably going to be pretty disappointed if they keep waiting. Prices have gone up significantly for years now. And, recently they’re going up around 15-20% per year and a few percent per month. We are not only seeing local buyers looking to get into the market, but buyers relocating from other areas. Out of area buyers have no home to sell, so they aren’t bringing any inventory to the market. Only taking. And, with interest rates creeping up, affordability is getting to be even more of a challenge. If you want to be a homeowner in Austin and you’re seeing affordability head towards levels that would make it unaffordable for you, don’t wait. Get in the market now and lock in your mortgage payment.
What does this mean to sellers? With inventory at 1/2 month, we are in an extreme seller’s market. We saw last month when we had a little bit more supply, demand also increased. Which shows what we were saying last month that the lack of demand was due to the lack of supply. Not because there was a shortage of buyers. 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.
18% Increase in Time to Sell Home in Austin
In February 2022, it took 14 days to sell a home in Austin, on average, compared to 16 days in February 2021, marking an 18% (2 day) increase in year over year numbers. Our market right now is basically two markets. One, where sellers price their homes right and homes sell quickly and a second where sellers overprice and wait for someone to get frustrated with the market and give in to paying them what they’re looking for. The second consists mainly of companies like OpenDoor, OfferPad and Zillow who overpaid for homes and are now waiting for someone to help them overcome the gap. Homes in the second camp of overpriced homes are taking significantly longer to sell than those in the first, thus increasing the average time to sell. The median time to sell a home in Austin was only 6 days, which is more representative of how quickly the market is moving.
Number of Homes Taken Off the Market Saw a 10% Increase
In February 2022, there were 44 homes taken off the market compared to 40 in February 2021. This marked a 10% (4 home) increase in year over year numbers. We are still seeing some sellers test the market at numbers that are way above comps. When they aren’t successful, they figure they’ll just wait the market out and try again in a few months.
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 10% Increase
Austin saw a 10% increase in the number of homes sold comparing February 2021 to February 2022. In February 2022, we saw 725 homes sell in Austin compared to 657 in February 2021 marking a 10% (68 home) increase in year over year numbers. This year started off a little quicker than last. It will be interesting to see what next month’s numbers show.
18% Decrease in Austin Housing Inventory
In February 2022, we saw 0.5 months of inventory on the market, compared to 0.7 months of inventory in February 2021, showing a n18% (0.1 month) decrease in year over year numbers. With inventory levels at less than 1 month, we are in extreme seller’s market territory. Take out the grossly overpriced houses and we have even less inventory. It’s no wonder we are seeing multiple offers over asking.
Austin Homes Under Contract Saw a 16% Increase
In February 2022, 769 homes went pending (under contract) in Austin compared to 665 in February 2021, marking a 16% (104 home) increase in year over year numbers. Again, with more inventory, I believe we’d see quite a few more home sales.
7% Increase in Number of Homes on the Market
In February 2022, we had 1,225 homes for sale in Austin, compared to 1,140 in February 2021, showing a 7% increase in year over year numbers.
14% Increase in Number of Homes Listed for Sale
In February 2022, we saw 802 homes introduced to the market compared to 705 in February 2021, marking a 14% (97 home) increase in year over year numbers. It seems more sellers are eager to get their homes on the market this year than they were last year.
Supply Up 7% and Demand Up 10%
This month we saw a 7% increase in supply (number of properties for sale) and a 10% increase in demand (number of sold properties). As we predicted, with more inventory, we saw more buyer demand.
Median for Sale Up 18% vs Median Sold Price Up 10%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 18% increase in the median for sale price and a 10% increase in the median sold price of single family homes in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
February 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 February 2022 Austin home sales below. The most expensive home that sold in February 2022 sold for $6,958,000 and the least expensive home sold for $249,900. Homes ranged in size from 576 sqft – 13,127 sqft with an average size of 2,087 sqft. The average price per square foot for a home that sold in Austin in February 2022 was $390.74 with the lowest being $146.81/sqft and the highest being $1,497.63/sqft. It took, on average, 27 days to sell a home in Austin and sellers received, on average, 103.90% 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||February 2022|
|Property Type||Single Family Homes||Number Sold||725|
|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.