AUSTIN, TX — According to the Austin Board of REALTORS® June and Mid-Year 2022 Central Texas Housing Market Report, a triple-digit gain in active listings year over year pushed housing inventory levels over two months in the Austin-Round Rock MSA for the first time since November 2019. Combined with a dip in residential home sales activity and slowing pace of home price growth in June, the data indicates a decelerating Austin housing market that is beginning to return to pre-COVID normalcy.
43% increase
8% increase
56% decrease
The number of homes sold has declined over the past couple of months….below the number of homes sold in the past several years. More homes were sold during June and July in 2021, 2020, 2019 and 2018.
Historically June and July are the highest home selling months, but 2022 has shown otherwise. In May 1,735 homes were sold and then June dipped down to 1,576 homes sold. July is on track to continue that dip.
The chart above shows the median sales price for all of the homes listed in MLS in the five-county area encompassing Travis, Williamson, Hays, Bastrop and Caldwell counties.
The median price experienced a slight dip from May to June with a median price of $550K in May and then a median price of $537K in June.
Fortunately, the year-over-year the median sales price is still up….up 13% over last year.
The number of homes on the market in Central Texas has shot up drastically over the past five months. In February 2022 there were 1,226 homes in the Austin Board of Realtors MLS. That number of homes increased month after month to 7,090 homes in June. As of July 28th, there are 9,915 homes currently for sale.
Central Texas now has over two months of home inventory. To stabilize our real estate market, still more listings are needed. A balanced, healthy market is created with 6 to 6.5 month’s supply of inventory.
In summary, the long-awaited gains in housing inventory contribute to slower price growth and market stabilization.
In June 2021 mortgage interest rates fell just below 3% and then one year later in June of 2022 rates nearly doubled to around 6%.
Currently, during the last week of July 2022, interest rates have dipped slightly again to just above 5%.
The chart below shows the 14-year interest rate trend:
Interest rates have a major effect on buyer’s purchasing power. Below is an example using a home worth $400K in 2021 which increased in value to $480K in 2022. Buyers are experiencing a double whammy with increased home prices AND higher interest rates.
The payment difference in the example below shows a 65% cost increase to the buyer.
There are several reasons to paint a home prior to selling. One is to refresh the home’s condition from it being worn, resulting in dirty, scratched or chipped walls and trim. Another is to make it appear newer and more marketable, leading to a quicker sale at a higher price.
But before you pick up the paintbrush, spend some time considering these factors:
Popular shades of greige are:
Pale Oak & Edgecomb Gray by Benjamin Moore
Repose Gray & Agreeable Gray by Sherwin Williams
Sculptor’s Clay & Ashen Tan by Behr
Shiplap & Gatherings by Magnolia H
