April Austin Housing Market Report

The hot Austin real estate market saw signs of cooling down in April, but we could say that’s like calling a 95º day cool compared to 100º here in Texas — still pretty hot! 

With a dramatic 52% year-over-year increase in active inventory (when compared to April 2021), the Austin real estate market is seeing signs of a slightly softening market, which is a welcome relief for buyers who have become exhausted with bidding wars. 

April residential home sales declined across the Austin-Round Rock MSA for the second month in a row according to the Austin Board of REALTORS® (ABoR) April 2022 Central Texas Housing Market Report. Even with a slight dip, the Austin-Round Rock Metropolitan Statistical Area (MSA) was only 216 homes short of breaking the record set for April home sales in April 2021. 

For sellers, it’s good to know that home prices are not going down. In April 2022, median home prices in Austin continued to climb despite an increase in mortgage rates nationwide. According to the ABoR, the Austin-Round Rock MSA saw the median home price increase 19% compared to April 2021 to $550,000. 

“The Central Texas market changes rapidly, so it is important for prospective buyers and sellers to plan ahead, see if they are pre-approved, understand what their needs are in a home, and think about where they can be flexible,” says Realty Austin Head of Sales Jolene Weinstein. “Working with an experienced agent is one of the best ways to set yourself up for success because you’ll have access to hyper-local market insights as well as their knowledge and connections.” 

For buyers looking to build equity by purchasing a home, April’s data signified a welcome relief in terms of inventory. With a dramatic jump in active inventory as well as a 0.3-month increase in months of inventory, buyers may find that they have more options and could get a break from the bidding wars we have seen in recent years. 

Potential buyers may be wary of the current mortgage rates, but experts expect that they will continue to rise. A recent Forbes article cited Lawrence Yun, chief economist and senior vice president of research at the National Association of Realtors (NAR), as saying, “All in all, the 30-year fixed mortgage rate is likely to hit 5.3% to 5.5% by the end of the year. Some consumers may opt for a 5-year ARM (adjustable-rate mortgage) at 4% by the end of the year.”

When comparing April 2021 and April 2022 ABOR data, the median sales price for homes in the Austin-Round Rock MSA increased 19% to $550,000.This increase in mortgage rates combined with the steady increase in the median home price in Austin should give buyers cause to truly consider the cost of waiting to purchase a home. 

Additionally, the rents continue to rise in Austin. Since March 2020, the national average rent has jumped nearly 20%, according to Realtor.com, and the cost of a one-bedroom apartment in Austin has jumped ​​26.6% in that time. 

If you’re a homeowner thinking about selling your home, the April data shows that homes are still selling quickly (an average of 18 days on the market, which is the same as April 2021) and for higher prices than we saw this time last year.

While the median sales price for homes in the area did increase, it is good for sellers to keep in mind that the rate it increased (19% between 2021 and 2022) is less than what we saw between 2020 and 2021, which was 41.6%/  

With an increase in active listings, sellers should be aware that buyers will have more options, so you aren’t likely to see as many of the intense bidding wars that have driven prices high over the original price as we saw in recent years.

No matter where you are in the home buying or selling journey, working with an experienced agent can be the key to understanding hyper-local market changes and ensuring you meet your real estate goals.