In May 2022, 66% of the homes that closed across the Austin metro went for over list. Homes took a median of 26 days to sell. The 30-year fixed averaged 5.23% that month, the highest monthly average in this series so far. That made it a seller's market.
Austin market statistics, May 2022
| Metric | May 2022 |
|---|---|
| Median sale price | $560,000 (+18.4% YoY) |
| Median price per sq ft | $279 (+22.1% YoY) |
| Homes sold | 3,132 (-6.5% YoY) |
| New listings | 4,621 |
| Active inventory | 6,585 (+57.8% YoY) |
| Months of supply | 2.1 |
| Median days on market | 26 |
| Sale-to-list ratio | 105.0% |
| Sold above asking | 65.6% |
| Listings with a price cut | 21.5% |
| 30-year fixed rate (avg) | 5.23% |
The Market Turned and Sellers Haven’t Noticed
Inventory went from 3,878 in March to 6,585 in May, a 70% build in two months, while the median slipped from $565,000 to $560,000. Sellers were still pricing off April comps. Buyers had stopped paying April prices. That gap is where the next twelve months of price cuts came from.
What changed since April 2022
The median fell $5,000 from April 2022, a 0.9% move. Time on market lengthened by 1 days, to 26. Active inventory grew by 1,483 listings, to 6,585. The share of homes selling over asking gave up 2.3 points, to 65.6%.
One month is noise. The reason to read it anyway is that direction shows up in inventory and days on market well before it shows up in price, so the months where those two disagree with the headline number are the interesting ones.
Where this month sits in the cycle
| May 2022 | April 2022 | May 2021 | Since Oct 2016 | |
|---|---|---|---|---|
| Median sale price | $560,000 | $565,000 | $472,850 | range $255,626–$565,000 |
| Median days on market | 26 | 25 | 26 | range 16–58 |
| Active inventory | 6,585 | 5,102 | 4,174 | range 2,660–7,969 |
| Months of supply | 2.1 | 1.8 | 1.2 | range 0.9–3.8 |
| Sold above asking | 66% | 68% | 74% | range 14%–75% |
| 30-year fixed rate | 5.23% | 4.98% | 2.96% | highest since Oct 2016 |
The right-hand column is the range this series has covered since October 2016. No forecast in it, just where May 2022 falls against every month that came before it.
If you are buying in Austin right now
2.1 months of supply is a seller's market, but not a chaotic one. Good homes priced correctly move in the first weekend; anything still sitting after three weeks has a reason, and finding out what it is before you offer is the whole job.
The average sale closed above asking, at 105.0% of list. Offering under list was, statistically, not a strategy that month.
The payment math. At $560,000 with 20% down at 5.23%, principal and interest runs about $2,468 a month. Add roughly $933 for property taxes and $373 for insurance and you are near $3,775 a month all in. Texas has no state income tax and this is where the state collects instead, budget the tax line from day one, not as an afterthought.
If you are selling: you have the leverage, and the mistake available to you is overpricing into it anyway. Homes were selling in 26 days. A listing that sits three weeks in this market has told every agent in town that something is wrong, and you will end up taking less than if you had priced it right on day one.
Neighborhood in focus
Northwest Hills (78731). Highland Park, Mesa Park. Known for quiet, large lots, family neighborhoods. It fits families who want space and a central location.
The metro numbers above are an average of a very unequal city, Northwest Hills does not move in lockstep with Kyle or Leander, and the gap between ZIPs widens in exactly the months the metro looks calm. There is a longer, more honest write-up at /neighborhoods/northwest-hills/, including what is wrong with it.
On in Austin, May 2022
| When | What | Why it matters to a listing |
|---|---|---|
| May 7–8 | Pecan Street Festival (Spring), Sixth Street Historic District | Sixth Street closes to traffic for the weekend. Downtown and the eastern edge of 78701 are slow; everywhere else is unaffected. |
What is coming next
The Fed is expected to move in 75-basis-point increments. Rates near 5.2% and heading higher.
Common questions
How long are homes taking to sell in Austin?
A median of 26 days in May 2022. That is the number to watch if you only watch one, days on market turns before price does, in both directions. For reference, since October 2016 this measure has ranged from 16 days in May 2016 to 58 in January 2019.
What are the best neighborhoods in Austin for families?
It depends on what you are optimizing for, and anyone who answers without asking is selling you something. Broadly: Circle C, Steiner Ranch and Avery Ranch for space and schools; Mueller, Crestview and Brentwood for walkability with a yard; Westlake and West Lake Hills for Eanes ISD if the budget reaches; Hyde Park and Bryker Woods for older homes near central. There are honest write-ups of nine of these at theaustinlocalgroup.com/neighborhoods, including the parts that are not flattering.
Is it a good time to buy a house in Austin?
Depends entirely on your timeline. At 2.1 months of supply you are competing, paying up, and giving up contingencies. If you need to be in a house this year, you buy and you accept the terms. If you can wait, understand that you are paying a premium for urgency.
How much are property taxes in Austin?
Combined city, county, school district and community college rates in the Austin area generally land between about 1.8% and 2.5% of assessed value, and higher inside a Municipal Utility District, where 3%+ is possible. There is no state income tax in Texas, and property tax is the trade. Two things every buyer should do: file a homestead exemption by April 30 of the year after you close, which caps annual taxable value increases at 10%, and check whether your target address sits in a MUD or PID before you finalize your budget.
Part of a retrospective series on the Austin market, one post per month since 2016, compiled from the historical record. This edition covers May 2022; every figure is as reported for that month, and nothing in it looks past it.
Source: Redfin Data Center metro market tracker: single-family, Austin-Round Rock-San Marcos metro, not seasonally adjusted. Mortgage rates are the monthly average of the Freddie Mac Primary Mortgage Market Survey 30-year fixed rate. Payment, tax and insurance figures are estimates for illustration and are not a quote. Median sale price is not a guarantee of value for any specific property.
Written by Mike Vilece, a licensed Texas real estate agent with Compass in Austin. If you want the version of this that applies to your street and your budget, ask me directly.