Eleven Oaks Realty is proud to present their February 2016 Austin Multi Family Real Estate Price Report measuring activity in the Austin multi family market. This report includes all multi family properties (duplex, triplex and quadplex) that sold in February 2016.
Austin Multi Family Properties Under Contract Up 67%
In February 2016, 50 multi-family properties went pending (under contract) in Austin compared to 30 in February 2015, marking a 67% increase in year over year numbers. This month we saw a significant increase in investor activity in Austin. Both an increase in sales and a decrease in inventory has created an extreme seller’s market for multi-family properties.
Austin Median Multi Family Property Median Price Up 13%
The median home price of a multi-family property in Austin in February 2015 was $316,000 compared to $280,000 in February 2016, marking a 13% increase in year over year numbers.
Median home price helps us see the distribution of multi-family properties sold and does not really give us an indication of the increase or decrease in a particular property’s market value. To analyze market value, we’d have to take an in depth look at a neighborhood. If you’re looking for something like that, please check out our Austin Property Values Report.
54% Decrease in Austin Multi Family Property Inventory
In February 2016, we saw 1.1 months of inventory on the market, compared to 2.4 months of inventory in February 2015, showing a 54% decrease in year over year numbers. This decrease put February 2016 numbers below last Spring/Summer numbers, showing just how active the multi-family market is in Austin.
Time to Sell Multi Family Property in Austin Down 21%
In February 2016, it took 23 days to sell a multi family property in Austin, on average, compared to 29 days in February 2015, marking a 21% (6 day) decrease in year over year numbers.
Number of Multi Family Properties Taken Off the Market Up 83%
In February 2015, there were 6 multi family properties taken off the market compared to 11 in February 2016, marking an 83% (5 property) increase city wide. This year we’ve seen an increase in properties taken off the market in all segments of the Austin real estate market.
If your Austin multi family property was priced right but it still didn’t find a buyer, maybe there was something else going on. The biggest culprits we see are incorrect info in the MLS, inaccessibility and poor marketing. Check out our Austin Property Marketing Plan to see how your homes would be marketed if we listed them. If you’d like our opinion on why your property didn’t sell email us at info@11OaksRealty.com.
Having trouble selling your property? Check out our Austin Property Not Selling resources page to find out why.
Number of Sold Multi Family Properties in Austin Up 32%
In February 2016, Austin saw a 32% increase in the number of multi family properties sold from February 2015 to February 2016. In February 2016, we saw 33 multi family properties sell in Austin compared to 25 in February 2015 marking a 32% (8 property) increase in year over year numbers.
Number of Multi Family Properties on the Market Up 8%
In February 2016, we had 116 multi-family properties for sale in Austin, compared to 107 in February 2015, showing an 8% (9 property) increase in year over year numbers. Even though inventory is down significantly, the increase in number of homes for sale gives investors a few more choices than they had last year.
Number of Multi Family Properties Listed for Sale Up 6%
In February 2016, we saw 56 multi family properties introduced to the market compared to 53 in February 2015, marking a 6% (3 property) increase.
Supply Up 8% and Demand is Up 32%
This month we saw an 8% increase in supply (number of properties for sale) and a 32% increase in demand (number of sold properties). This month demand increased significantly, while supply only moderately. With so many new investors in the market looking to snatch up property, it makes sense why we saw such a decrease in inventory.
Median for Sale Up 29% vs Median Sold Price Up 13%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 29% increase in the median for sale price and a 13% increase in the median sold price of a multi family property in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
February 2016 Austin Multi Family Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for February 2016 Austin multi family sales below. The most expensive property that sold in February 2016 sold for $3,275,000 and the least expensive multi family property sold for $41,000. Multi family properties ranged in size from 1,560 sqft – 11,316 sqft with an average size of 2,714 sqft. The average price per square foot for a multi family property that sold in Austin in February 2016 was $143.34 with the lowest being $16.03/sqft and the highest being $301.41/sqft. It took, on average, 46 days to sell a multi family property in Austin and sellers received, on average, 93.58% of their original list prices.
|Unit Count||SqFt||List Price||LP/SqFt||Sold Price||SP/SqFt||SP/LP||SP/OLP||ADOM|
|Status||Sold||Sold Date||February 2016|
|Property Type||Multi Family||Number Sold||34|
|Source:||ABoR Sales Data||Area||Austin|
Time to Buy? Sell?
Looking strictly at the numbers, it appears the recommendation for this month is – it’s time to sell! Though we saw an 8% increase in supply, we also saw a 32% increase in demand. Time to sell has gone down by 21% and buyers are willing to pay 13% more than they were at this time last year. More money in less time should be music to any multi-family property owner looking to sell. If this Spring is anything like the last three, we’ll see more demand and stronger offers from investors looking to capitalize on increasing rents. With only 1.1 months of inventory on the market, the multi-family market is an extreme seller’s market. If you prepare your property to meet the market, you’ll have no trouble finding a buyer willing to pay top dollar. If your multi-family property is located in a desirable area or good school district, you’re in an even better position as those are very hard to find. Spend some time preparing the property to meet the market and hire a Realtor who knows how to market multi-family properties. If you’re considering selling, work with a Realtor who has strategies to help you get top dollar for your home. Check out our 88 Ways to Sell Your Home Faster and For More Money for some tips on how you can prepare your home to meet the market. We are entering the busiest time of year. Do what you can to prepare your home now and you’ll be ready at the perfect time. For more info about our Home Selling Program, check out Selling in Austin.
If you’re looking to buy an investment property in Austin, you’ll want to be proactive and decisive. If this Spring is anything like the last several Spring’s, demand will continue to pick up as we get deeper into the season. It is taking a week less to sell a multi-family property in Austin, on average, this month compared to last month. Less time on the market means more money for sellers. And, as we head into Spring, we would expect time to sell to drop into the teens. Take advantage of the increased inventory and you just might be able to negotiate a great deal. If you’re looking to get the best deal, set alerts for new listings and scout them as soon as possible. Hire a Realtor who knows the multi family real estate market and has strategies for getting your offers accepted without increasing your offer price. Our team not only knows the market, but we also own several multi-family properties that have no trouble finding tenants. We can help you identify which properties will be the highest netting. Put our knowledge and experience to work for you and we’ll help you make money on your rental. For more info about buying a multi-family property, visit Buying in Austin.
Questions About the Austin Multi Family Real Estate Price Report?
Do you have questions about this Austin Multi Family Real Estate Price Report? Call us at (512) 827-8323 or email us at info@11OaksRealty.com and we’ll help you in any way we can. If you’re looking to buy or sell Austin real estate, don’t forget to check out our Buyer Resources and our Seller Resources for more tips.