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How to Confidently Choose a Realtor to Work With

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Austin, Texas, is quickly becoming a prime real estate market in the US. It’s not just for people who love music and barbecue, but different people are moving from high-priced housing markets in other states to Austin. Continue reading to get detailed knowledge about Austin’s housing market.

Austin home values

As of May 2022, home prices in Austin had risen by 15.6% compared to 2021. On average, Austin homes sell 27 days after it’s placed on the market. Although Austin’s housing market records a higher sales record than the national average, it falls short of neighboring cities’ housing markets of San Antonio and McAllen, whose total house value has risen by 24% simultaneously. Houston and El Paso have recorded a slightly lower rate of 23% but still stand higher than Austin’s.
 
Like other housing markets, Austin’s home prices have risen due to increased housing demand and low inventory. Many homes for sale in Austin receive multiple offers. This explains why pending sales have decreased by 12.5% since May 2021.

Austin real estate inventory levels

Like other housing markets, Austin’s real estate market is being slowed down by the lack of inventory. By March, there were only 1639 listings in the market. Although this is slightly up from the 1,593 listings of March 2021, it’s far below the listing of 2019 and 2017. Despite the current low inventory, there was a significant dip in the inventory, to as low as 0.4 months of inventory in January 2021. Fortunately, it has been improving steadily, but the high housing demand contributes to the low inventory levels.
 
With the low inventory experienced now, Austin’s property prices have reached an all-time high. The demand seems to be getting higher throughout the year, meaning the market will continue to be competitive. The booming home construction brings a fresh air of hope to the overbearing Austin real estate market, but it is not enough to keep up with the rising demand for housing.
 
Besides that, local builders face challenges like permitting hurdles and zoning regulations, limiting the supply of new houses. This has led to over-reliance on resale homes. Therefore, inventory will continue to fall from the monthly supply of 1.2 months. With the current high sales pace, it would take an average of 5 weeks or less for the supply to run out.

Austin median property sale prices

Nearly every housing market is experiencing a surge in the median sale price, but Austin’s growth is exceptionally high. In February 2022, the national median sale price had grown by 13.5%, but Austin’s median sales had increased by 29.5% over the same period. In a more detailed perspective, Austin’s median sale price in May 2022 stands at $676,000, a rise of 22.8% from the 2021 median price, which stood at $479,000.
 
If you look into the Austin median price per square foot, you’ll still notice a significant rise in houses for sale in Austin. Austin has achieved a growth rate of 24.4% year-over-year to $260 per square foot. This is slightly above the national median price per square foot, which grew from $184 to $218 between February 2021 and February 2022. Compared to the neighboring city of El Paso, Austin’s median price per square foot stands high since El Paso’s prices jumped by 16.4% during the same period.
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