The Austin housing market is shifting. The market reflects what is happening in other major cities across the country. While activity appears to have slowed slightly in recent months, home prices in Austin are still on the rise. Home values are over 13% higher than they were in June 2021, when compared with historical averages of 5-6%. As a result, the Austin real estate market is exhibiting indications of slowing down. However, it should be noted that fewer homes are being sold than in previous years.
The trend of a slowing growth rate in sales indicates market stabilization, but the demand is still outpacing the supply in a market where housing prices have reached all-time highs. As a result, Austin home prices are skyrocketing, and buyers are bearing the brunt of the burden. Low inventory, high buyer demand, and rising prices will continue throughout the year; however, there are signs that the market will eventually cool off when inventory rises or prices reach their apex. The median sales price is surging in double digits and will continue to rise over the next twelve months.
The Austin Board of REALTORS®‘ Mid-Year 2022 Central Texas Housing Market Report shows that a triple-digit gain in active listings year over year pushed housing inventory levels over 2 months.
- The market is moving towards pre-pandemic sales activity and inventory.
- The Austin market is not balanced, and it still favors sellers.
- Homes still closed at over 100% of the list price on average in June.
- Residential home sales declined 20.3% year over year.
- There is an influx of homes on the market.
- The median price rose 13%, setting a record of $537,475.
- New listings jumped 19.6% to 6,160.
- Housing inventory increased to 2.1 months of inventory, up 1.5 months from last June — a sign of a seller’s real estate market.
Austin Housing Market Predictions 2022-23
Austin’s housing market is likely to continue the trend of recent years as one of the hottest markets in the nation. The biggest drivers of residential real estate demand are Austin’s economy, which has diversified and strengthened over the past two decades, and companies like Google and Tesla moving operations here. As more companies move here, that means more people looking for homes, and Austin is also attractive to outside investors. With a steady influx of job creation in the pipeline, the housing market will continue to post strong numbers well into 2022. Big companies moving here will also play into what happens to the housing market.
Corporate relocations are at an all-time high and the housing demand is rising rapidly. Because of this, the supply cannot meet the demand, and this region has a higher probability of withstanding economic downturns.
According to their report, the value of the Austin Metro housing market grew by $141 billion or 126% in the past decade. In 2010, the market was worth about $111 Billion. In 2019, Austin’s total housing value grew $22 billion or 9.5%, year-over-year.
NeighborhoodScout’s data shows that real estate in Austin has appreciated 169.47 percent over the last ten years, which is an average annual home appreciation rate of 10.42%. This figure puts Austin in the top 10% nationally for real estate appreciation. During the latest twelve months, Austin’s appreciation rate was 26.34%.
According to the Zillow Home Value Forecast (ZHVF), Austin-Round Rock Metro’s home values have gone up 25.2% over the past year and are expected to rise by 7% by June 2023.
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