For over a year, we’ve seen just how incredible a market for sellers Austin has become, thanks mainly to low interest rates, soaring buyer demand, and major tech giants like Apple, Oracle, Tesla and Samsung relocating their mega-plants and campuses to the city and surrounding suburbs. How does the growth we’ve seen in Austin compare to the rest of the country? Can sellers expect to see those same returns in the new year?
In a new report from 24/7 Wall St, based on data from Q3 of 2021, Austin holds an impressive ranking of 12th highest among U.S. metro areas in profit margins for sellers, with a total average profit of 70.9%, or about $200k in dollar terms. The national average, in comparison, came to 47.6%, or a profit of around $100k. Taking first place on the list was Boise, Idaho, with a whopping average profit margin of 130% and $252k, with Bellingham, Washington, trailing behind at 105%.
“2022 will bring more balance to the housing market,” said Redfin chief economist Daryl Fairweather, “but don’t expect a buyer’s market; just more selection, less frenzy and slower price growth. We will see a rush to buy homes at the start of the year before mortgage rates rise. That early onslaught of demand will deplete the supply of homes for sale. In the second half of the year, a much needed increase in new construction will boost sales slightly. In 2022, there will be 1% more sales than in 2021, and by the end of the year, home price growth will slow to 3%.”
In the years since the pandemic, the Austin housing market has out-performed most of the major metropolitan areas in the U.S., and that trend is not expected to change in 2022. While national trends will influence the city’s market to some degree, metrics like inventory, average sale prices and days on market will likely remain more competitive than that of the national average. Of course, if the pandemic years have taught us anything, it’s that only so much can be forecasted, and that 2022 is sure to be just as full of surprises as the last two years.