Eleven Oaks Realty is proud to present their August 2022 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Median Home Price Up 4%
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 August 2021 was $611,145 compared to $635,000 in August 2022, up 4% ($23,855) 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 sense of normal come back to the market. Though technically we are still in a seller’s market, buyers are not competing with 40 other offers on every single house and they’re getting a little more time to make a decision. Yes, they are still paying more than they were at this time last year, but they also aren’t just settling for the house they won in the bidding war. Interest rates have jumped up a little, so that’s a little unnerving. However, some buyers are looking at that as a temporary increase that will be corrected during a refinance when rates drop. 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, 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.
96% Increase in Time to Sell Home in Austin
In August 2022, it took 34 days to sell a home in Austin, on average, compared to 17 days in August 2021, marking a 96% (17 day) increase in year over year numbers. The median time to sell is 17 days, which is a 7 day increase from last month. Time to sell is something we’ve seen steady increases in since June. We typically see the opposite during the summer. But, this changing market has flipped things upside down this year.
Number of Homes Taken Off the Market Saw a 161% Increase
In August 2022, there were 439 homes taken off the market compared to 168 in August 2021. This marked a 161% (271 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 36% Decrease
Austin saw a 36% decrease in the number of homes sold comparing August 2021 to August 2022. In August 2022, we saw 747 homes sell in Austin compared to 1,164 in August 2021 marking a 36% (417 home) decrease in year over year numbers. As buyers navigate the new market, they are reevaluating their options.
193% Increase in Austin Housing Inventory
In August 2022, we saw 3.1 months of inventory on the market, compared to 1.1 months of inventory in August 2021, showing a 193% (2 month) increase in year over year numbers. Though we are seeing the opposite of what we typically see during summer, inventory increases rather than decreases, we are still in a seller’s market. Albeit not as strong a seller’s market as we have been, but still a sellers market nonetheless.
Austin Homes Under Contract Saw a 29% Decrease
In August 2022, 782 homes went pending (under contract) in Austin compared to 1,106 in August 2021, marking a 29% (324 home) decrease in year over year numbers.
49% Increase in Number of Homes on the Market
In August 2022, we had 3,641 homes for sale in Austin, compared to 2,441 in August 2021, showing a 49% increase in year over year numbers. For the first time in a while, buyers have more choices and more time to make a decision.
13% Decrease in Number of Homes Listed for Sale
In August 2022, we saw 1,095 homes introduced to the market compared to 1,257 in August 2021, marking a 13% (162 home) decrease in year over year numbers. We saw numbers decrease from last month as well, which is typical in August.
Supply Up 49% and Demand Down 36%
This month we saw a 49% increase in supply (number of properties for sale) and a 36% 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. Though we are still in a seller’s market, buyers are able to dictate some more terms.
Median for Sale Up 15% vs Median Sold Price Up 4%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 15% increase in the median for sale price and a 4% increase in the median sold price of single family homes in year over year numbers. The median price of a for sale home in August 2021 was $604,000 compared to $695,000 in August 2022. The median sold price of a home in August 2021 was $611,145 compared to $635,000 in August 2022.
Source: Clarus Market Metrics, ACTRIS Sold Data
August 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 August 2022 Austin home sales below. The most expensive home that sold in August 2022 sold for $11,995,000 and the least expensive home sold for $220,000. Homes ranged in size from 624 sqft – 10,500 sqft with an average size of 2,193 sqft. The average price per square foot for a home that sold in Austin in August 2022 was $385.99 with the lowest being $141.03/sqft and the highest being $1,962.21/sqft. It took, on average, 24 days to sell a home in Austin and sellers received, on average, 94.99% of their original list prices.
| Beds | Baths | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM |
|---|---|---|---|---|---|---|---|---|---|---|
| Min | 1 | 1 | 624 | $249,999 | $160.26 | $220,000 | $141.03 | 68% | 58% | 0 |
| Max | 7 | 8 | 10,500 | $12,250,000 | $2,003.93 | $11,995,000 | $1,962.21 | 129% | 129% | 231 |
| Avg | 3 | 3 | 2,193 | $874,646 | $392.40 | $857,459 | $385.99 | 98.39% | 94.99% | 24 |
| Median | 3 | 3 | 1,953 | $649,000 | $341.02 | $633,500 | $333.24 | 99% | 97% | 17 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | August 2022 |
| Property Type | Single Family Homes | Number Sold | 748 |
| 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 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 August 2022 Austin Real Estate Price Report?
Do you have questions about our August 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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