Austin Housing Market Report Year-End & December 2022
New markets require new approaches and tactics. Working with a trusted real estate expert in your local area will help you make an informed decision for your future.
Now is the time of year when housing industry experts analyze the market data to forecast what’s to come. We’ve rounded up a few of the most important predictions for you to consider below, but before we get to it, let’s talk about how we finished 2022.
Median home prices peaked in May and declined by 16% through December. The year ended with the median price for a home in Austin setting a new annual record of $503,000, according to the Austin Board of REALTORS®. Despite this record, the housing market continued shifting towards buyers as home sales declined 18% last year and inventory increased, with homes on the market for 31 days, 11 days longer than in 2021.
Let’s take a look at what happened in the local Austin housing market for December 2022:
The number of homes for sale increased 275% year over year.
The number of new listings entering the market fell 15%, compared to a year ago.
The number of homes under contract fell 22% and the number of homes sold fell 31%, compared to one year ago.
Monthly inventory levels are at 2.7 months, compared to 0.6 months in December 2021.
Average days on the market increased to 73 days, up 47 days, compared to one year ago - but Realty Austin listings are selling on average in 30 days.
Source: Austin Board of REALTORS®, Austin-Round Rock Metropolitan Statistical Area.
What will influence the 2023 housing market?
Steadying interest rates
The Federal Reserve has pledged to slow down interest rate increases in 2023. Mortgage rates are expected to land somewhere in the mid-5% to low-6% range. Pro Tip: Learn more about mortgage rate locks to support your buying power with certainty.
Growing but slowing home prices
Affordability remains a concern for buyers, but experts hope this will stabilize as home prices hit their first year-over-year decrease since 2019. The affordability challenge is real, but we’re here to help. Don’t be fearful of fluctuating mortgage rates to put off your needs or what is important to you and your family. Here are three things homebuyers need to know!
Motivated sellers
Sellers are more likely to agree to concessions when homes aren’t moving quickly, covering expenses like home warranty plans and even discount points towards a lower interest rate.
Inventory still lagging
The number of homes for sale will lag behind pre-pandemic levels but will be up from last year, giving buyers more homes to choose from. Economic factors, including increasing construction costs, and supply chain and labor issues could cause inventory to fall this year.
Bottom Line: If you’re thinking of buying or selling a home this year, don’t be fearful of fluctuating mortgage rates to put off your needs or what is important to you and your family. A trusted real estate advisor can help you navigate the market. There are many unique options, including affordability resources and creative financing, to help you move forward with confidence.
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