Eleven Oaks Realty is proud to present their July 2015 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 July 2015.
Austin Multi Family Properties Under Contract Down 7%
In July 2015, 43 multi-family properties went pending (under contract) in Austin compared to 46 in July 2014, marking a 7% decrease in year over year numbers. With significantly less inventory on the market, I don’t believe the decrease in multi-family properties had to do with a decrease in demand.
Austin Median Multi Family Property Median Price Up 10%
The median home price of a multi-family property in Austin in July 2014 was $259,000 compared to $284,488 in July 2015, marking a 10% increase in year over year numbers. Though we are seeing fewer sales, we have extremely low inventory, which is causing prices to increase.
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.
24% Decrease in Austin Multi Family Property Inventory
In July 2015, we saw 1.3 months of inventory on the market, compared to 1.7 months of inventory in July 2014, showing a 24% decrease in year over year numbers. With a decrease in multi-family inventory, we are seeing an even more extreme seller’s market than last year and even more extreme than last month.
Time to Sell Multi Family Property in Austin Down 39%
In July 2015, it took 22 days to sell a multi family property in Austin, on average, compared to 36 days in July 2014, marking a 39% (14 day) decrease in year over year numbers. It seems investors are the fastest buyers to make a decision in the Austin real estate market. While single family home and condo buyers are taking more time to decide, investors realize good opportunities won’t last long and move on their top choices.
Number of Multi Family Properties Taken Off the Market Down 12%
In July 2014, there were 8 multi family properties taken off the market compared to 7 in July 2015, marking a 12% (1 property) decrease city wide.
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 Down 12%
In July 2015, Austin saw a 12% decrease in the number of multi family properties sold from July 2014 to July 2015. In July 2015, we saw 37 multi family properties sell in Austin compared to 42 in July 2014 marking a 12% (5 property) decrease in year over year numbers. Again, I believe the decrease in the number of sales has more to do with decreased inventory than decreased demand. With properties selling in less than 25 days, it is clear there are plenty of investors ready to snatch up inventory.
Number of Multi Family Properties on the Market Down 20%
In July 2015, we had 104 multi family properties for sale in Austin, compared to 130 in July 2014, showing a 20% decrease in year over year numbers. Investors who are able to increase rents yearly aren’t looking to unload their cash cows, especially if they purchased their multi-family properties years ago.
Number of Multi Family Properties Listed for Sale Down 2%
In July 2015, we saw 47 multi family properties introduced to the market compared to 48 in July 2014, marking a 2% (1 property) decrease.
Supply Down 20% and Demand is Down 12%
This month we saw a 20% decrease in supply (number of properties for sale) and a 12% decrease in demand (number of sold properties). Though technically a decrease in demand according to the numbers, demand is measured by number of sales which I believe was limited by the number of choices.
Median for Sale Up 36% vs Median Sold Price Up 10%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 36% increase in the median for sale price and a 10% increase in the median sold price of a multi family property in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
July 2015 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 July 2015 Austin multi family sales below. The most expensive property that sold in July 2015 sold for $1,575,000 and the least expensive multi family property sold for $169,900. Multi family properties ranged in size from 1,184 sqft – 5,446 sqft with an average size of 2,286 sqft. The average price per square foot for a multi family property that sold in Austin in July 2015 was $185.05 with the lowest being $83.93/sqft and the highest being $1,140.20/sqft. It took, on average, 29 days to sell a multi family property in Austin and sellers received, on average, 100.78% 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||July 2015|
|Property Type||Multi Family||Number Sold||39|
|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. With an average time on market at 22 days, only 1.3 months of inventory on the market and median sold price up 10%, sellers who prepare their properties to meet the market will have no trouble finding a buyer who is 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, always be looking for good deals. Even though prices are up, so are rents. Be proactive and you might just be successful. Sellers who are serious about selling their multi-family properties will be competing to make their units most appealing to the qualified buyers in the market. If you are in the market for a multi-family property, make scouting new listings a priority. 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.