This article is an updated version of what was submitted for the September edition of the HPWBA neighborhood newsletter published by Peel. With summer now over and heading into fall, I wanted to provide some context for how the market is performing so far this year.
There is no question that things slowed in the spring and summer, and the number of transactions dropped significantly. See the nearby graph comparing 2022 through the end of August to past years at the same point. 2019 was very busy, and things have steadily dropped since then, and this year transactions are down nearly 60% compared to the same time last year.
At the same time, price appreciation has been incredibly strong. 2021 annual appreciation based on median sold $ / sq ft was up roughly 30% vs. 2020. But after a few more transactions in August, the median sold $ / sq ft dropped significantly and as a result so far this year appreciation is flat.
That said, the main driver appears to be that the size of the homes sold is significantly larger, up nearly 40% compared to the same time in 2021. So the median sale price is up over 40% this year (to $2M) vs. 2021 ($1.395M), even as the $ / sq ft has declined some.
So while transactions are down, this is a reflection of lack of inventory more than anything. New listings in HPWBA have steadily declined since 2019 and are down nearly -20% in 2022 vs. the same time period in 2021 (and down over -60% vs. 2019!). Our neighborhood is more desirable than ever for home-buyers, and I don’t anticipate that to change.
If you are interested in learning more about what is going on in the market, or are curious what your home’s potential market value is, please contact me and I’d be happy to help!
Note: All data comes from the Austin Board of Realtors’ MLS report, reflecting activity through August 31, 2022.
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