Eleven Oaks Realty is proud to present their October 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 October 2015.
Austin Multi Family Properties Under Contract Down 8%
In October 2015, 35 multi-family properties went pending (under contract) in Austin compared to 38 in October 2014, marking an 8% decrease in year over year numbers.
Austin Median Multi Family Property Median Price Up 3%
The median home price of a multi-family property in Austin in October 2014 was $257,000 compared to $264,500 in October 2015, marking a 3% increase in year over year numbers. Though we saw a slight increase, it seems multi-family buyers are being a little bit more aggressive on their offers.
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.
29% Increase in Austin Multi Family Property Inventory
In October 2015, we saw 2.4 months of inventory on the market, compared to 1.8 months of inventory in October 2014, showing a 29% increase in year over year numbers. It seems we’re seeing more inventory on the market than this time last year, which should be a welcome sign for investors. More inventory generally means more choices for buyers and less competition.
Time to Sell Multi Family Property in Austin Down 28%
In October 2015, it took 21 days to sell a multi family property in Austin, on average, compared to 30 days in October 2014, marking a 28% (8 day) decrease in year over year numbers. Even though investors are more aggressive with offers, they seem to be making decisions much quicker than they were last year.
Number of Multi Family Properties Taken Off the Market Up 150%
In October 2014, there were 4 multi family properties taken off the market compared to 10 in October 2015, marking a 150% (6 property) increase city wide. At first glance, 150% seems like a huge increase, but when you dig down and see that only means 6 more properties, it is not too big of a change.
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 14%
In October 2015, Austin saw a 14% decrease in the number of multi family properties sold from October 2014 to October 2015. In October 2015, we saw 37 multi family properties sell in Austin compared to 43 in October 2014 marking a 14% (6 property) decrease in year over year numbers. We did, however, see an increase in multi-family property sales from September 2015.
Number of Multi Family Properties on the Market Up 14%
In October 2015, we had 128 multi family properties for sale in Austin, compared to 114 in October 2014, showing a 14% increase in year over year numbers. If you’re an investor looking to purchase a multi-family property, now is a great time of year to start your search.
Number of Multi Family Properties Listed for Sale Up 4%
In October 2015, we saw 53 multi family properties introduced to the market compared to 51 in October 2014, marking a 4% (2 property) increase.
Supply Up 14% and Demand is Down 14%
This month we saw a 14% increase in supply (number of properties for sale) and a 14% decrease in demand (number of sold properties). The increase in supply and decrease in demand is another indication now is the time to buy investment property in Austin.
Median for Sale Up 6% vs Median Sold Price Up 3%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 6% increase in the median for sale price and a 3% increase in the median sold price of a multi family property in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
October 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 October 2015 Austin multi family sales below. The most expensive property that sold in October 2015 sold for $698,000 and the least expensive multi family property sold for $167,500. Multi family properties ranged in size from 1,248 sqft – 4,124 sqft with an average size of 2,266 sqft. The average price per square foot for a multi family property that sold in Austin in October 2015 was $139.36 with the lowest being $57.96/sqft and the highest being $334.82/sqft. It took, on average, 18 days to sell a multi family property in Austin and sellers received, on average, 96.55% 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||October 2015|
|Property Type||Multi Family||Number Sold||37|
|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 buy. Not only are we seeing a seasonal slowdown, but we are also seeing a slowdown from last year’s numbers. Inventory and supply are up, demand is down and prices haven’t increased significantly. When you consider the rent increases from last year, you’ll likely get a better ROI by buying this year. If you’re looking to buy an investment property in Austin, you’ll have to act quickly. Multi-family properties are selling in less than 3 weeks, on average, meaning the best properties sell quickly. 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.
If you’re looking to sell your multi-family property, it isn’t the worst time to do that either. With an average time on market at 21 days, only 2.4 months of inventory on the market and median sold price up 3%, 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.
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.