Eleven Oaks Realty is proud to present their December 2018 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 December 2018.
Austin Multi Family Properties Under Contract Up 55%
In December 2018, 34 multi-family properties went pending (under contract) in Austin compared to 22 in December 2017, showing a 55% increase in year over year numbers.
Austin Multi Family Property Median Price Up 3%
The median home price of a multi-family property in Austin in December 2017 was $386,825 compared to $398,500 in December 2018, marking a 3% ($11,675) 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.
4% Decrease in Austin Multi Family Property Inventory
In December 2018, we saw 2.4 months of inventory on the market, compared to 2.5 months of inventory in December 2017, showing a 4% decrease in year over year numbers. Interesting trend to see inventory dip down to spring levels in December. It will be telling to see how the multi-family market continues in January.
Time to Sell Multi Family Property in Austin Down 1%
In December 2018, it took 39 days to sell a multi family property in Austin, on average, compared to 39 days in December 2017, marking a 1% (0 day) decrease in year over year numbers. Time to sell numbers increased quite dramatically in September and have leveled off since then. I would have expected to see a decrease in time to sell with the decrease in inventory. It will be interesting to see what next month’s numbers show.
Number of Multi Family Properties Taken Off the Market Up 76%
In December 2017, there were 17 multi family properties taken off the market compared to 30 in December 2018, marking a 76% increase in year over year numbers. It seems many investors who were looking to unload their properties in 2018 decided to take them off the market versus adjusting the price or condition.
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 4%
In December 2018, Austin saw a 4% increase in the number of multi family properties sold from December 2017 to December 2018. In December 2018 there were 27 multi family properties that sold vs. 26 in December 2017, making a 4% increase in year over year numbers.
Number of Multi Family Properties on the Market Up 55%
In December 2018, we had 144 multi-family properties for sale in Austin, compared to 93 in December 2017, showing a 55% (51 property) increase in year over year numbers.
45% Increase in the Number of Multi Family Properties Listed for Sale
In December 2018, we saw 32 multi family properties introduced to the market compared to 22 in December 2017, showing a 45% (10 property) increase in year over year numbers.
Supply Up 55% and Demand Up 4%
This month we saw a 55% increase in supply (number of properties for sale) and a 4% increase in demand (number of sold properties). With such a drastic increase in supply and only a slight increase in demand, buyers might have an edge in negotiating a better deal with a motivated seller who can’t wait for the market to improve.
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. The median for sale price of a multi-family property in Austin went from $425,000 in December 2017 to $449,000 in December 2018, showing a $24,000 increase. The median sold price of a multi-family property in Austin went from $386,825 in December 2017 to $398,500 in December 2018, showing a $11,675 increase.
Source: Clarus Market Metrics, ACTRIS Sold Data
December 2018 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 December 2018 Austin multi family sales below. The most expensive property that sold in December 2018 sold for $835,000 and the least expensive multi family property sold for $215,000. Multi family properties ranged in size from 1,200 sqft – 6,844 sqft with an average size of 2,475 sqft. The average price per square foot for a multi family property that sold in Austin in December 2018 was $173.09 with the lowest being $114.42/sqft and the highest being $332.08/sqft. It took, on average, 33 days to sell a multi family property in Austin and sellers received, on average, 95.20% of their original list prices.
|Unit Count||SqFt||List Price||LP/SqFt||Sold Price||SP/SqFt||SP/LP||SP/OLP||ADOM|
|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 buy. With supply up 55% and demand only up 4%, buyers have an opportunity to negotiate with a motivated seller. Though prices are up, we’re only looking at a 3% increase from last year’s figures. And, rents are also on the rise, so that should help offset that cost to purchase.
If you’re looking to buy, 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.
Looking to sell? Make your property stand out as a value. When buyers are excited about the potential of your property, they’re willing to pay more. 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.