December Austin Housing Market Report

That’s a wrap! The December 2021 data for the Central Texas housing market is out, courtesy of the Austin Board of REALTORS® (ABoR). As we move forward with new real estate goals in 2022, one key to greater understanding is looking at where the market has been.

“In 2021, we lived through the most exciting, complicated, fast-paced, and record-setting housing market in Austin’s history,” said 2022 ABoR president Cord Shiflet.

More homes were sold in the Austin area than ever before in 2021. But December did show a slight dip in home sales compared to December 2020. This is due to the fact that many people take their homes off the market during the holiday season, according to American Home Shield.

Compared to December 2020, median home prices continued to rise significantly, and the average number of days on the market dropped. Even in a month that’s typically slower due to holiday breaks and travel, the housing market was still thriving.

Speaking of rising, experts predict that interest rates can only go up after the historic lows we saw in 2021, according to Time. The Federal Reserve helped keep rates low to help stimulate the economy by purchasing billions of home loan bonds, but they are looking to shed those in 2022 as the economy stabilizes.

For buyers, the summer months tend to be the most popular, but experts say you can benefit from acting in the winter. According to Realtor.com, homes tend to close faster, and you have comparatively less competition when hiring services like movers. 

Though the winter months are usually less competitive for buyers, that doesn’t seem to be the case in Austin this season. National media like The Wall Street Journal have since stated that the current market is on track to be the most competitive month in housing nationwide in 15 years.

“There are still great opportunities to find your next home,” said Shiflet. “Folks interested in buying should consider looking at making a move ahead of presumed increases in interest rates and home prices this year”.

Especially if you’re a first-time homebuyer, starting your search now will help you keep your interest rates lower.

Though the Austin market certainly shifts housing inventory quickly, Shiflet told the Austin Business Journal that the area actually saw record-high numbers of new listings.

"A market like this that’s demand-driven and boosted by companies like Tesla and Amazon creating so many jobs in Austin, have led folks to list their homes because they saw an opportunity to enjoy such a great return on their investment,” said Shiflet. “Lack of inventory and global supply chain issues may lead to a 5-7% decline in closed sales across the region in 2022, but rising home values will ensure the housing market’s economic impact remains steady,” said Shiflet.

“In short, 2022 will see a robust market for home sales and property values, but the region must do more to address inventory.”

If you want to sell your home and don’t know where to start, reach out to one of our talented agents and get to work on your realty resolutions.