Eleven Oaks Realty is proud to present their September 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 September 2015.
Austin Multi Family Properties Under Contract Up 6%
In September 2015, 35 multi-family properties went pending (under contract) in Austin compared to 33 in September 2014, marking a 6% increase in year over year numbers. With only a difference of two properties, these numbers are essentially equal.
Austin Median Multi Family Property Median Price Up 25%
The median home price of a multi-family property in Austin in September 2014 was $236,000 compared to $294,500 in September 2015, marking a 25% increase in year over year numbers. As rents continue to rise, it is not surprising we’re seeing a significant increase in multi-family properties. Landlords seem to be confident they will be able to continue to raise rents, and are willing to pay more to own a multi-family property.
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.
8% Increase in Austin Multi Family Property Inventory
In September 2015, we saw 2.0 months of inventory on the market, compared to 1.8 months of inventory in September 2014, showing an 8% increase in year over year numbers. Though a slight increase, the Austin multi-family housing market is still a seller’s market.
Time to Sell Multi Family Property in Austin Up 1%
In September 2015, it took 22 days to sell a multi family property in Austin, on average, compared to 22 days in September 2014, marking a 1% (0 day) increase in year over year numbers. Investors know a good deal when they see it and aren’t wasting any time making offers.
Number of Multi Family Properties Taken Off the Market Down 25%
In September 2014, there were 20 multi family properties taken off the market compared to 15 in September 2015, marking a 25% (5 property) decrease city wide. On the flip side, if the numbers don’t work out, investors aren’t purchasing units that are greatly overpriced. Multi-family property owners who price their properties over the market won’t be successful at getting a buyer.
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 32%
In September 2015, Austin saw a 32% decrease in the number of multi family properties sold from September 2014 to September 2015. In September 2015, we saw 28 multi family properties sell in Austin compared to 41 in September 2014 marking a 32% (13 property) decrease in year over year numbers. This decrease has more to do with a decrease in supply rather than a decrease in demand. With fewer properties listed, investors are having to wait longer to find a property that meets their investment criteria.
Number of Multi Family Properties on the Market Up 5%
In September 2015, we had 120 multi family properties for sale in Austin, compared to 114 in September 2014, showing a 5% increase in year over year numbers.
Number of Multi Family Properties Listed for Sale Down 23%
In September 2015, we saw 41 multi family properties introduced to the market compared to 53 in September 2014, marking a 23% (11 property) increase. With rents increasing year after year, owners are reluctant to list their multi-family properties and give up the return on their investment.
Supply Up 5% and Demand is Down 32%
This month we saw a 5% increase in supply (number of properties for sale) and a 32% decrease in demand (number of sold properties). Again, I think this decrease in demand is due to a limited supply of properties. There are plenty of investors waiting for the right deal to pop up. When it does, they waste no time snatching it up.
Median for Sale Up 4% vs Median Sold Price Up 25%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 4% increase in the median for sale price and a 25% increase in the median sold price of a multi family property in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
September 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 September 2015 Austin multi family sales below. The most expensive property that sold in September 2015 sold for $1,450,000 and the least expensive multi family property sold for $132,500. Multi family properties ranged in size from 1,497 sqft – 4,977 sqft with an average size of 2,293 sqft. The average price per square foot for a multi family property that sold in Austin in September 2015 was $168.50 with the lowest being $72.64/sqft and the highest being $356.30/sqft. It took, on average, 20 days to sell a multi family property in Austin and sellers received, on average, 99.88% of their original list prices.
| Unit Count | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM | |
|---|---|---|---|---|---|---|---|---|---|
| Min | 2 | 1,497 | $159,900 | $81.85 | $132,500 | $72.64 | 82.86% | 80.73% | 1 |
| Max | 4 | 4,977 | $1,490,000 | $325.19 | $1,450,000 | $356.30 | 111.98% | 111.98% | 115 |
| Avg | 2 | 2,293 | $390,393 | $167.65 | $390,895 | $168.50 | 100.44% | 99.88% | 20 |
| Median | 2 | 1,988 | $284,950 | $138.04 | $294,500 | $142.73 | 100.53% | 101.12% | 8 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | September 2015 |
| Property Type | Multi Family | Number Sold | 28 |
| 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 25 days, only 2.3 months of inventory on the market and median sold price up 36%, 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.
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