Austin, Texas Real Estate Trends in 2022

The Austin metropolitan area adds about 150 people a day, a trend that continues to drive real estate prices upward despite rising interest rates and inflation. According to Norada, year-over-year growth for a single-family home in the city rose 24% from June 2021 to June 2022. The median home sale in the city is now an impressive $620,000.

This red-hot upward trend has to end sometime, doesn't it? Let's look at some of the main things driving Austin, Texas, real estate trends in 2022.

Current Austin Real Estate Trends

The current seller's market has calmed down a bit. Austin is no longer the hottest city in the United States, coming in tenth on Zillow's 10 Hottest Housing Markets in 2022. Tampa, Jacksonville, and Raleigh occupy the top three spots nationwide, with San Antonio taking the fourth seat. 

This suggests investors no longer think they can turn a profit purchasing homes in the greater Austin metro areas and have moved on to markets where single-family homes sell for considerably less. 

It's cold comfort, though, if you're an average person trying to purchase a home in the Austin metro area. Median home sales price shows no sign of decreasing any time soon. This may be because of Austin's skilled labor market, which brings in buyers who are able to bid up the price of homes. 

There's More Inventory in Austin...Finally

One of the main factors driving the seller's market in Austin, Texas, was the lack of inventory. But in 2022, there are finally more properties on the market. A report confirms that there were86% more homes on the Austin market in May 2022, compared to a year before. 

This trend can be seen nationwide, with inventory increasing in 42 out of 50 of the largest metro areas in the country. Many analysts expect inventory to continue to grow as supply chains resume normal operations and inflation rates continue to push the country toward recession. 

Thus far, however, having more houses on the market hasn't done anything to depress the median home sale price in the Austin metro area. That could change as the year draws to a close.

Migration From the City

In 2021, Austin metro's rapid population growth was fueled in large part by people moving to the suburbs outside the city. Towns around Austin, like Georgetown and Leander, are starting to become cities in their own right, with thriving real estate markets.

In fact, some Austin residents have cashed in on their home equity and decided to move further out of the city center in search of more affordable housing. 

The price for a single-family home in some of these suburbs isn't much cheaper, though. In Georgetown, the median home sale price is $499,000.  In Leander, the median home sales price isalmost $539,000. Both of these northern suburbs have posted year-over-year increases in excess of 25%.

Looking to Get a Piece of the Action?

Even if the country edges into recession, the Austin metro area is well-positioned for continued growth and will have a robust real estate market well into the future. 

If you are looking to break your way into a job where you can set your own schedule and earn a good income, now is a good time to take the pre-licensure courses you need to pass your real estate license exam in Texas. You can sign up to take Aceable Agent's TREC-approved Texas real estate course today.

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