For the first time since February 2019, median home prices in the Austin-Round Rock MSA experienced a 0% year over year increase, according to the Austin Board of REALTORS® November 2022 Central Texas Housing Market Report. As housing inventory and days on the market continue to steadily increase across the MSA, the report indicates normal market activity could be here to stay, as Austin’s housing market maintains its trajectory toward balance and sustainability. For the first time since the spring of 2020, there were no records broken for home sales or median price in either the MSA or City of Austin.
“It’s a relief to see more homes available and sitting on the market long enough to give buyers an opportunity to think before they leap,” Cord Shiflet, 2022 ABoR president, said. “This healthy competition creates an opportunity for homebuyers, who may have struggled within the past two years, to take their time and find a home they love. At the same time, sellers who can still enjoy deep equity should connect with a REALTOR® to discuss the best way to prepare and market their home.”
Last month, home sales declined by 36.6% to 2,026 closed listings— the largest drop in closings by percentage since May 2020 during the initial COVID-19 economic hesitancy when closings fell 29.2%. Sales dollar volume fell by 36.8% to $1,175,435,108 as new listings declined 17.8% to 2,406 listings across the MSA. Pending listings dropped by 38.3% to 1,987 listings and available inventory increased by 2.3 months to 3.1 months of inventory. Homes spent an average of 58 days on market, up 36 days from November 2021.
Dr. Jessica Lautz, deputy chief economist and vice president of research at the National Association of REALTORS®, reviewed the 2022 housing market on a national level, stating that level setting expectations for homebuyers and sellers is crucial now that the market is on track toward normalization.
“In January, we experienced the lowest inventory on a national level since 1999,” Lautz said. “The average number of offers reached an all-time high in the spring, nationally, at 5.5 offers a home, since everyone knew interest rates would increase. Because of this, we saw this frenzied pace in the market, especially here in Austin, where the massive migration flow of people from other parts of the country caused home prices to increase. This was not a good market for anyone.”
Lautz added that homebuyers should seriously consider the length of time they plan on living in a home and speak with a REALTOR®.
“We have to remember that the housing market is local,” Dr. Lautz said. “As millennials age in and senior adults stay in place instead of relocating, people are facing this short housing stock, and it’s becoming an increasing issue.”
While housing inventory almost quadrupled to 3.1 months of inventory year over year for the Austin-Round Rock MSA and City of Austin, there is still a long way to go before a balanced market with six months of inventory is available.
In the wake of Kirk Watson being elected Austin’s new mayor, ABoR is looking towards opportunities to address housing with a new administration.
“On behalf of the Austin Board of REALTORSⓇ, we would like to congratulate Kirk Watson on his victory,” Shiflet said. “In 2023, it’s vital that Austin’s new mayor and City Council hit the ground running and prioritize our housing supply. We look forward to working closely with Kirk to craft policies that address affordability, create a more inclusive housing market and improve our community.”
City of Austin
In November, home sales decreased 49.4% to 529 sales—the largest drop in closings by percentage since May 2020 when closings dropped by 36.6%— while sales dollar volume decreased 49.2% to $352,744,056. At the same time, median price slightly decreased 1.8% to $530,000 for the City of Austin. Last month, new listings dropped 21.9% to 685 listings, active listings skyrocketed 182.9% to 2,300 listings as pending sales declined by 46.6% to 536 pending sales. Monthly housing inventory increased 1.9 months year over year to 2.6 months of inventory.
In Travis County, home sales decreased 45.4%% to 882 sales, while sales dollar volume decreased 44.1% to $614,701,585. Last month, median price in Travis County slightly rose 0.8% year over year to $529,000 as new listings decreased -20.1% to 1,083 listings and active listings ballooned 204.7% to 3,943 listings year over year. Pending sales declined 46.6% to 854 pending sales as monthly housing inventory increased 2.2 months year over year to 2.9 months of inventory.
November home sales decreased 33.8% to 730 sales in Williamson County. Sales dollar volume declined 34.2% year over year to $360,132,515. The median price slightly decreased 1.1% to $439,945 as new listings dropped 17.9% to 825 listings. During the same period, active listings soared 303.3% to 2,972 listings while pending sales dropped 31.7% to 751 pending sales. Housing inventory rose 2.4 months to 3.0 months of inventory.
In Hays County, November home sales decreased 13.6% to 273 sales and sales dollar volume also slightly decreased 7% to $143,056,087. The median price for homes rose 5.2% to $414,500. During the same period, new listings decreased 22.7% to 313 listings, while active listings skyrocketed by 189.8% to 1,281 listings. Pending sales decreased 27.6% to 265 pending sales as housing inventory jumped by 2.4 months to 3.5 months of inventory.
Last month, Bastrop County home sales decreased 17.6% year over year to 103 sales, while sales dollar volume also fell by 9.2% to $43,867,768. Median price increased 5.1% to $362,450 as new listings rose 28.3% to 145 listings. Active listings soared 185.3% to 505 listings as pending sales decreased 32.8% to 80 pending sales. Housing inventory increased by 2.6 months to 4.0 months of inventory, the highest level of inventory across the MSA in November.
In Caldwell County, home sales stayed flat at 38 sales, and sales dollar volume rose 2.4% to $12,841,136. The median home price increased 24.1% year over year to $331,000. At the same time, new listings decreased by 20% to 40 listings as active listings skyrocketed 109.1% to 115 listings. Pending sales also stayed flat at 37 pending sales, and housing inventory increased 0.9 months to 2.7 months of inventory.
For more information or to download the November 2022 Central Texas Housing Market Report, visit ABoR.com/MarketStatistics.