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It’s been a wild couple of years. What can we expect going forward?
Today we’ll talk about the crazy Austin real estate market of the last two years. In 2022, we saw that change. Does that mean our market is tanking? All signs point to no, and I have the numbers to back up this claim.
In 2022 things changed, and if there was a theme for this past year, I would say it would be stability. What helped with getting us to a stable market? First of all, interest rates increased. With interest rates increasing, you can’t have astronomical home price increases. However, when we’re looking at the numbers, it’s amazing because we hit a record median sales price here in the Austin area. We hit $503,000. That’s an 11% increase from the year before.
Another stabilizing effect was that our inventory grew slightly. We went from 2.1 months of inventory on the market to between 2.7 and 2.8 months of inventory. That’s a slight increase. Over the last two years, we were looking at well under a month of inventory, meaning that if all the houses, condos, and townhomes on the market sold, it would take less than a month to sell them all. Today we’re at almost three months of inventory, meaning it would take three months to sell everything.
The third prediction is we’re starting to see inflation improve slightly, and we’re starting to see the Fed take a more modest approach with rate increases. So right now, it’s looking good and more stable. If the theme for 2022 was stability and getting us back to normal conditions, my theme for 2023 in the Austin real estate market is being cautious and optimistic. I’m excited to be here in Austin and in this real estate market, and I think it will be a great year in 2023.
If you’re interested to know what’s going on in your neighborhood and with your home, call me today. I love the opportunity to sit with you, look at numbers, and discuss how my team and I can help you in 2023 with your real estate needs.
