Eleven Oaks Realty is proud to present their May 2023 Austin Real Estate Price Report measuring activity in the single family home market.
The Austin Real Estate Market is Still in a Seller’s Market
Even with higher interest rates, pickier buyers, more inventory and longer time on market, Austin is still considered a seller’s market with 4.13 months of inventory. Sellers are getting 97.7% of their list prices, down 0.18% in month over month numbers. It’s taking, on average, 23 days to sell a home in Austin, down 28.13% in month over month numbers. The median sold price is $634,750, which is up 1.74% in month over month numbers.
What does this mean for sellers? Despite what you might be hearing from the media or your friends with homes to sell, the Austin real estate market is still strong. We have seen a reduction in the number of buyers out there, but strong buyers are still there. They aren’t making decisions quickly, nor are they giving the seller everything they could have wished for and more in an offer, but sellers are able to get their homes sold at a fair price.
What does this mean for buyers? The market is trending towards a balanced market. We are seeing its strength pick up a bit now that we have entered the busy season, but buyers are still able to negotiate with sellers, which is something we haven’t seen for years. If you’re looking to buy, now is the sweet spot to have more choices, less competition and the ability to negotiate a fair deal.
Austin Median Home Price Down 13%
The median price of a house that sold in Austin in May 2022 was $726,000 compared to $634,750 in May 2023, showing a 12.57% ($91,250) decrease in year over year numbers. In month over month comparisons, we saw a 1.7% increase in the median price compared to April 2023, showing that buyers are having to come up a bit more to get the house they want.
13% Decrease in Austin Home Sales
In May 2023, we saw 847 homes sell in Austin compared to 973 in May 2022, showing a 13% decrease in year over year numbers. We are seeing fewer buyers in the market this year and the closed sales numbers confirm that. Homes sales did increase in month over month numbers by 29%, from 656 in April 2023. This seasonal trend is something we’d expect as we head deeper into the busy home buying season.
8% Decrease in Average List Price to Sales Price
In May 2023, Austin home sellers received 97.66% of their list prices compared to 106.07% in May 2022, marking an 8% decrease in year over year numbers. Month over month showed an 0.2% decrease from 97.83% in April 2023. As we said last month, this year is a completely different market than we saw a year ago. Buyers are able to pay less than list price rather than well over list price as they did last year.
188% Increase in Time to Sell an Austin Home
In May 2023, it took 23 days to sell a home in Austin compared to 8 days in May 2022, showing a 188% increase in time to sell. Last month, in April 2023, it took 31 days to sell, showing a 28.1% decrease in month over month numbers. This decrease in time to sell in month over month numbers is typical for this time of year. But, the year over year trend is a significant increase and is an indicator of the slower market we are experiencing.
Austin Median $/SqFt Down 16%
In May 2023, the median price per square foot for a house in Austin was $321/sqft compared to $383 in May 2022, showing a 16% decrease in prices. When you compare this month to last month, we saw an 0.3% decrease from $327/sqft in April 2023.
Total Austin Sales Volume Down 18%
In May 2023, we saw $732,279,237 in closed sales volume compared to $890.74MM in May 2022, showing an 18% decrease in year over year numbers. Last month, in April 2023, we saw total sales volume at $531,278,729, making this months numbers a 33.1% increase in month over month comparisons. Again, as we head into the peak home buying season, we expect sales volume to increase. We should expect a decrease around July and August.
Austin Months Supply of Inventory Up 181%
In May 2023, we had 4.13 months supply of inventory in Austin compared to 1.47 months in May 2022, showing a 181% increase in year over year numbers. In April 2023, we had 3.86 months of inventory, showing a 7% increase in month over month numbers.
32% Decrease in Number of Homes that Accepted a Contract
In May 2023, we saw 944 homes accept a contract compared to 1,250 homes that accepted a contract in May 2022, showing a 32% decrease in year over year numbers. Last month, we had 925 homes accept a contract, showing a 2.1% increase in month over month comparisons.
Median List Price Up 2% and Median Sold Price Down 13%
In May 2023, we saw a median list price of active listings of $779,000 compared to $745,570 in May 2022, showing a 4% increase in year over year numbers. As we saw in the chart above, the median sold price in May 2023 was $634,750, down 13% in year over year numbers. We are seeing these numbers inch further apart, which is indicative of a buyer’s ability to negotiate prices down.
New Listings in Austin Saw a 3% Decrease
In May 2023, we saw 1,344 homes listed for sale in Austin compared to 1,380 in May 2022, showing a 3% decrease in year over year numbers. Last month, we saw 1,170 homes listed for sale, showing a 14.5% increase in month over month comparisons. Though we are seeing small fluctuations, we are essentially seeing the same number of sellers list for sale than we did at this time last year. This indicates sellers are still a little hesitant, but for a different reason this year than last. Last year it was more about finding a new house whereas this year their concern is more about finding a buyer.
81% Increase in Number of Homes for Sale in Austin
In May 2023, we saw 2,352 homes listed for sale in Austin compared to 1,300 in May 2022, showing an 81% increase in year over year numbers. Last month we saw 2,230 homes listed for sale, showing a 5.7% increase in month over month numbers.
May 2023 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for May 2023 Austin home sales below. The most expensive home that sold in May 2023 sold for $8,700,000 and the least expensive home sold for $195,000. Homes ranged in size from 480 sqft – 13,037 sqft with an average size of 2,264 sqft. The average price per square foot for a home that sold in Austin in May 2023 was $369.89 with the lowest being $122.23/sqft and the highest being $2,586.98/sqft. It took, on average, 40 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 | 480 | $229,000 | $132.31 | $195,000 | $122.23 | 60% | 48% | 0 |
| Max | 8 | 10 | 13,037 | $8,999,000 | $2,675.88 | $8,700,000 | $2,586.98 | 121% | 151% | 403 |
| Avg | 4 | 3 | 2,264 | $871,055 | $379.82 | $843,577 | $369.89 | 97.79% | 94.99% | 40 |
| Median | 3 | 3 | 2,068 | $649,000 | $316.57 | $630,000 | $311.02 | 98% | 97% | 15 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | May 2023 |
| Property Type | Single Family Homes | Number Sold | 931 |
| 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 sellers market, we are still trending towards a balanced market. Buyers are able to take a little time to make a decision and negotiate with sellers. Though homes aren’t selling for rock bottom prices, buyers are feeling happier with their home purchases than they were a year ago. They’re able to select the one they want and negotiate with a seller, rather than just making offers over asking on everything that comes up for sale, hoping they get one.
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.
If you need to sell, don’t be discouraged. Know it’s going to take a little more time, but also know that if you stick it out, you’ll be successful. 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.
Questions About the May 2023 Austin Real Estate Price Report?
Do you have questions about our May 2023 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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