Steiner Ranch Housing Report - September 2022
We continue to see prices pull back in Steiner Ranch as the pace of sales sees a slight uptick. The stats for the Steiner Ranch real estate market can be found in text and chart 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 September 2022 edition of "How's the Market in Steiner Ranch.” We’ve had a little uptick in buying activity, but prices continue to come down.
In August, 13 resale homes closed in Steiner Ranch which was down 55% from August 2021. This is an extremely low number for August. If we look at 2020 when 34 homes closed, the drop is 62%. The median price in August increased year-over-year by 1.5% to $900,000. The average price of a home increased 3.6% to $1,010,212. The average price per square foot increased by 3.9% to $305.94. With only 13 homes comprising the data this month, it’s hard to say conclusively, that this is where the market is today. Personally, I think the median would be a little higher if we had a better representation of the market in Steiner, but I can safely say the median is now under $1 million and will continue to come down for a while longer. I’ve always said that one month of data isn’t a good read on the overall market and that I prefer to look at a longer period of time. However, given the current market, when we look at the year-to-date sales, they are overstated because we are including prices from when the market was higher. But, let’s look at them anyway. In the first eight months of 2022, the number of resale homes sold is 125, down 39% from the same time frame last year. The median price of a home has increased 31% to $1,085,000. The average price increased by 23% to $1,180,797. The average price per square foot increased 21% to $349.17. Now it’s hard to say exactly what was the peak median price because our data tends to swing so much from month to month, but we are probably down 12% or so. This drop is a bit larger than what we see overall in the Austin area market, which is down 8% from the peak price that was hit in May.
The number of available resale homes at the end of August was 52, up from 21 last August. This is down from the 63 in July, but there were 10 homes that were taken off the market without selling during August. Some were rented out and others will wait until later to try selling again. During August, 12 new listings hit the market which is less than half of last year. One bright spot in August was the 20 new contracts. Not all price ranges of homes participated in this, but any improvement is nice to see.
The average sales price to list price ratio was 97.3%, which was the lowest we’ve seen since the end of 2019. For homes that closed in August, the average days on market was 24, up from 11 last year. It's also doubled from 12 days in July. Across Steiner, the August sales ranged from a low of $531,750 to a high of $2,275,000.
While the prices continues to move down, I’ll continue to track the number of price reductions. During August, there were 88 price reductions on homes in Steiner. Given the total number of homes on the market during the month, that averages out to more than one price drop for every home. The 88 price reductions was a four-fold increase from the 22 in August of last year. It’s also up from the prior month of July, when there were 70.
I will reiterate what I’ve been saying for a few months. I believe the Austin economy is strong and that the outlook for housing in the medium and long term is extremely positive. However, the short term is questionable after the rapid appreciation of the past two years and the rapid increase in interest rates this year (as of today, mortgage rates are almost double from the start of the 2022). Of course, interest rates will climb higher which is the main driver of this slowdown. I don’t know when we will hit the bottom either in terms of price or timeframe, so we just have to work within the market we are given. I don’t want this to sound all doom and gloom, but I do want to present an accurate picture of the market. Homes are selling in Steiner now and will continue throughout this downturn. Sellers just have to realize how the prices have changed.
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.”