January Austin Housing Market Report

With a variety of things still up in the air like the future of interest rates and the speed at which the supply chain will bounce back to pre-pandemic health, becoming informed on the market information available is a great way to make educated real estate moves in 2022. 

The red-hot market of 2021 was at times stressful for buyers looking to purchase a home as well as developers facing supply issues, but many in the market are feeling positive about the tone of this year. 

“REALTORS® are optimistic about what this year could bring and looking forward to what will hopefully be a year filled with opportunity for homebuyers, sellers, and developers alike,” said 2022 ABoR president Cord Shiflet. “Working with a REALTOR® that understands the complexities of the market is the best decision those interested in getting into the market can make.”. 

According to KVUE, Austin apartment prices increased 30% in 2021, causing more millennials and other buyers to consider taking steps toward homeownership. In fact, CultureMap Austin reported that Austin will be the number one housing market for millennials in 2022 and the second market for Gen Xers. 

Additionally, Austin’s job market continues to heat up, adding fuel to the hot real estate market in town. If you’re looking to continue to grow your career in Austin, now is a great time to start your home search.

“Austin’s unprecedented economic growth shows no signs of stopping, with announcements of new projects almost daily,” Scott Turner, president of the Home Builders Association of Greater Austin, told ABoR. 

This is creating some capacity issues, especially when you factor in continued supply chain issues and the city’s land development code. Shiflet is one of the many voices that have raised the issue that the code must be updated in order to better meet the city’s housing needs by making the permit process faster.

Shawn Fitzgerald, who is the president of a company that tracks demand for materials, told The Austin Business Journal that “we’re dealing with supply chain challenges out of Covid, and now we have this massive backlog that we can't get the stuff for.” 

“Even as you're getting the materials, the backlog continues to grow, because there's more demand on the front end because of the shift to remote work and people’s desire for new homes,” said Fitzgerald. He predicts that the backlog will ease in the next year, but this highlights for buyers to work with an experienced agent that can help you navigate the current market.

New housing developments continue to pop up across town, like the Trinity Ranch subdivision, which will bring 1,700-plus homes to Elgin, according to The Austin Business Journal. Additionally, The Austin Business Journal reported that a 2,200-home neighborhood is planned for Hays County, and the desire to live in the areas surrounding Austin will likely increase.

Buyers should also keep interest rates in mind. According to CNET, mortgage interest rates are continuing to climb, and experts predict that this will continue throughout the year. 

For sellers, the market has recently seen record-high median sale prices, meaning you’ll likely get more for your home by selling. If the increase in sale prices piqued your interest, you can estimate the worth of your home. 

Even if you aren’t looking to sell your home until later in the year, the beginning of the new year is a great time to start preparing, according to Realty Times. Now is the time to find an agent, begin making repairs and updates, and decide on a listing date.

Because of the frustrations that buyers are experiencing with the supply chain, sellers are further poised to be able to have more influence in the process of selling their homes. 

The Washington Post reports that 2022 will continue the trend of the market favoring sellers. The Washington Post also predicts that sellers will have “a relatively easy time during the first half of the year.”

If you want to sell your home and don’t know where to start, reach out to one of our talented agents and get the ball rolling.