Austin Market Report - February 2022

[David Ivy]

The February 2022 market numbers are out from the Austin Board of Realtors. With metro home sales up 11% and the median home price up 27% over last year, 2022 looks on track for another big year for the Austin real estate market.

The median home in the metro sold for $499,995 last month, which is a new record. Austin’s median was up 15% to $565,000.

Inventory remains abysmally low at 0.4 months with no obvious path for a significant increase in supply by end of year. So, Austin’s extreme sellers market with continually rising prices looks likely to continue for the foreseeable future.

Here are the numbers for Austin and the greater metro area:

The Austin market is facing headwinds in 2022, including rising home prices, rising mortgage rates, inflationary concerns, and the developing crisis in Ukraine. These headwinds could decrease buyer demand and negatively impact builders and developers. However, with inventory at a meager 0.4 months, we’re starting so far in the hole that even getting up to 3-4 months of inventory would still leave us in a seller’s market. Aside from WW3 or some other catastrophic global crisis, it’s difficult to see how prices in Austin could fall significantly in 2022, despite the headwinds mentioned.