Steiner Ranch Housing Report - June 2022
While prices are still up, I do predict we'll begin to see them pull-back a bit. In this month's installment of How's the Market in Steiner Ranch, I review the May sales stats and let you know what I think we should expect in the coming months. The stats can be found in chart and text formats below the video.
If you are looking to buy or sell a home in Steiner Ranch, contact me via email or at 512-650-7300. Previous editions of How’s the Market in Steiner Ranch are also available. If you prefer to read instead of watch, here are the chart and transcript.
Greetings! I'm Craig Smyser with 1835 Realty. Welcome to the June 2022 edition of "How's the Market in Steiner Ranch.” The numbers look good, but there’s change on the horizon.
In May, 30 resale homes closed in Steiner Ranch which was down 21% from May 2021. Every month this year has had fewer closings compared to 2021. This is still because of low inventory, but that’s about the change – we’ll talk about that in a bit. The median price in May increased 17% to $957,500. The average price of a home increased 21% to $1,169,128. The average price per square foot increased by 22% to $356.60. These numbers are quite a bit lower than last month, but, as I said at the time, the April sales were skewed because so many homes that closed were in the higher-end neighborhoods. This month, they are a bit overweighted by the entry-level neighborhoods in Steiner so the monthly numbers are actually a bit lower than what I really observe in the market. That’s one reason I like to look at a longer timeframe – so we can get a smoother picture. Looking at the last six months, the number of resale homes sold is 101, down 26% from this same time frame the year prior. The median price of a home has increased 27% to $985,240. The average price increased by 28% to $1,148,762. The average price per square foot increased 29 % to $344.04. Personally, I think if we had an even distribution of the homes that sold, we’d see a median price a little over $1 million, so I think these numbers really are a good representation of the market and its timeframe.
For months I’ve been saying that I expect prices to continue to rise, but at a slower rate than we’ve seen. However, it may be time for me to reassess. I believe that we may see some month-over-month declines in pricing over the next few months. However, I expect year-over-year comparisons to continue with price increases. Essentially, I’m saying that we may be at a peak in pricing and could see a pullback. I don’t think the decline will take us very far back which is why I say year-over-year numbers will still be positive. Why do I think this? Well, let’s look at some more numbers.
The number of available resale homes at the end of May was 21, up from 11 last May. But guess what? By the time we got to June 3rd, that number jumped from 21 to 30. Yes, we increased by almost 50% the number of homes for sale in just three days. That’s more active homes at any given time since August 2020. It’s because of this jump in inventory that I don’t see prices going up, but instead a small pullback is likely. (pause) The average sales price to list price ratio was 103.7% and for homes that closed in May, the average days on market was 11, up from 7 last year. Across Steiner, the May sales ranged from a low of $650,000 to a high of $2,300,000.
One of the reasons these numbers and my explanations can conflict is because I’m giving the stats for sales that closed in May and, most likely, went under contract in April. But, I’m also telling you what I see in the market today which is why it can be confusing. So while our sales numbers still charge higher, today’s market is changing, even though it is just a few weeks later. So, what does it all mean? If you are a seller, you’re going to have fewer showings than if you listed a few months ago. You’ll have fewer offers (maybe even just one – shocking I know) and likely take longer to sell. As a result, your price is probably a bit lower, but still a great price. If you are a buyer, the good news is that you have more homes from which to choose and probably won’t be competing against other buyers. This means you should be able to get it for list price or maybe even a bit lower, depending upon the situation. Keep in mind that there are definitely sellers, and quite a few agents, who haven’t figured out yet that the market is changing. As an example, I had clients make an offer on a Steiner home when it hit the market about a month ago. My instinct told me that even though it was the first weekend, we would be the only offer. We went in at full price and it was essentially sneered at with no formal response given by the seller. Two weeks later, we finally got a response that was 11% above the list price. That house still sits on the market today. So the market is changing, whether people understand or not. If you are thinking of buying or selling, contact me so we can have a frank conversation about the market and figure out if now is the right time for you.
If you have any real estate related questions, please don’t hesitate to call or text me at 512-650-7300 or email me at [email protected]. Thanks for watching “How’s The Market in Steiner Ranch.”
Statistics based upon information from ACTRIS for the periods cited.