Austin Texas Real Estate Market – June 2022 Update

Summer is only getting started and the real estate market in Austin is still hot.

If you’ve been thinking of buying or selling a home in Austin, this article will provide you with an update on what’s happening in the ATX real estate market.

Inventory Is Up!

There’s no denying that inventory has been a consistent problem over the last 5 years, especially in Austin, as homes received multiple offers as soon as they were listed, sold fast and drove up home values fast across the ATX area.

In 2022, we now have a good problem, there’s more inventory than in years past.

Buyers have more homes to choose from and the ‘luxury’ of taking their time to find the right property instead of having to go through the intense home buying process that was common in Austin just a few months ago.

• May 2022 closings saw a dip of 6% compared to May 2021. That makes 10 of the last 12 months with year-over-year sales decreases; February 2022 and June 2021 both saw increases. With pending sales for May also showing a sizable dip of 12%, we can expect June 2022 closings to also show year-over-year declines. It’s important to remember that both 2020 and 2021 were both record-breaking years. 2020 saw the bulk of sales in June through December and 2021 sales were front-loaded between January and May.  Despite recent declines in demand, closed sales are still comparable to, or better than, the pre-pandemic era.

Home Values Are Up Too!

Besides having more inventory to choose from across Austin, home values are also up in 2022 as well.

This is good news for ATX homeowners because every buyer wants to know that their asset will continue to appreciate despite what’s happening in the economy etc.

• A 19% increase in year-over-year median sales price is amazing. As inventory continues to climb and sales slow to 2019 levels, home sellers are still receiving top dollar for their listings and in some cases, are still getting over asking price though not to the same extent as 2020 and 2021.

Demand Is Down

Even though there’s a lot of great things happening in the real estate market, the reality is that demand is down right now, this has a lot to do with rising mortgage interest rates which have pushed some people back to the home buying ‘sidelines’.

Does this mean that you shouldn’t sell your home? No, you should still list your property but you must be prepared for the competition that comes from shifting from a sellers market, to a buyers market.

• May 2022 closings saw a dip of 6% compared to May 2021. That makes 10 of the last 12 months with year-over-year sales decreases; February 2022 and June 2021 both saw increases. With pending sales for May also showing a sizable dip of 12%, we can expect June 2022 closings to also show year-over-year declines. It’s important to remember that both 2020 and 2021 were both record-breaking years. 2020 saw the bulk of sales in June through December and 2021 sales were front-loaded between January and May.  Despite recent declines in demand, closed sales are still comparable to, or better than, the pre-pandemic era.

Cost Of Mortgage Is Way Up

Last of all, but most important the cost of a mortgage is also up as well.

Will this stop buyers from purchasing their dream homes? No, most buyers are still going to move forward with their home buying goals if they are able to financially afford buying a home.

• The current rate for a 30-year fixed is 5.875% though we’ve already seen rates as high as 6.125%. This time last year, rates were still below 3%. The rates shifting up has no doubt put pressure on buyers seeking mortgages to secure their home.

If you’re thinking of buying or selling a home in the Austin Texas real estate market, contact me today by calling (512) 944-7378 or click here to connect with me online.