Eleven Oaks Realty is proud to present their March 2020 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 March 2020.
Austin Multi Family Properties Under Contract Down 43%
In March 2020, 17 multi-family properties went pending (under contract) in Austin compared to 30 in March 2019, showing a 43% (13 property) decrease in year over year numbers.
Austin Multi Family Property Median Price Saw a 2% Decrease
The median home price of a multi-family property in Austin in March 2019 was $407,500 compared to $399,500 in March 2020, marking a 2% ($8,000) decrease 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.
24% Increase in Austin Multi Family Property Inventory
In March 2020, we saw 3.7 months of inventory on the market, compared to 3.0 months of inventory in March 2019, showing a 24% (0.7 month) decrease in year over year numbers. With levels well below 2 months for a fifth month in a row, we are in an extreme seller’s market in the multi-family property sector.
Time to Sell Multi Family Property in Austin Up 76%
In March 2020, it took 59 days to sell a multi family property in Austin, on average, compared to 33 days in March 2019, marking a 76% (25 day) increase in year over year numbers. This is a complete 180 from last month’s numbers where we saw a significant decrease. Time to sell multi-family properties has gone up higher than we have seen in previous months and even years. It will be interesting to see what next month’s figures show.
Number of Multi Family Properties Taken Off the Market Saw a 100% Increase
In March 2019, there were 9 multi family properties taken off the market compared to 18 in March 2020, marking a 100% (9 property) increase in year over year numbers.
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 7%
In March 2020, Austin saw a 7% increase in the number of multi family properties sold in year over year numbers. In March 2020 there were 32 multi family properties that sold versus 30 in March 2019, marking a 7% (2 home) increase in year over year numbers.
Number of Multi Family Properties on the Market Down 24%
In March 2020, we had 98 multi-family properties for sale in Austin, compared to 129 in Marchy 2019, showing a 24% (31 property) decrease in year over year numbers.
2% Decrease in the Number of Multi Family Properties Listed for Sale
In March 2020, we saw 48 multi family properties introduced to the market compared to 49 in March 2019, showing a 2% (1 property) decrease in year over year numbers.
Supply Down 24% and Demand Up 7%
This month we saw a 24% decrease in supply (number of properties for sale) and a 7% increase in demand (number of sold properties).
Median for Sale Up 22% vs Median Sold Price Down 2%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 22% increase in the median for sale price and a 2% decrease 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 $449,000 in March 2019 to $549,500 in March 2020, showing a $100,500 increase. The median sold price of a multi-family property in Austin went from $407,500 in March 2019 to $399,500 in March 2020, showing an $8,000 decrease.
Source: Clarus Market Metrics, ACTRIS Sold Data
March 2020 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 March 2020 Austin multi family sales below. The most expensive property that sold in March 2020 sold for $776,000 and the least expensive multi family property sold for $126,210. Multi family properties ranged in size from 952 sqft – 3,968 sqft with an average size of 2,350 sqft. The average price per square foot for a multi family property that sold in Austin in March 2020 was $189.62 with the lowest being $78.24/sqft and the highest being $400.21/sqft. It took, on average, 23 days to sell a multi family property in Austin and sellers received, on average, 98.79% 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||33|
|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 inventory is up to nearly 4 months, we’ve seen a 7% increase in demand and a 24% reduction in supply. And, with median prices up 24%, it’s clear motivated buyers will pay more for properties that meet their investment goals. Multi-family properties are a target for local and out of area investors. Though it might be taking a bit longer to sell them this year, sellers are getting more. Plus, with the median time to sell at 6 days, the multi-family properties that are priced well and presented as a value, sell much faster than the average. So, if you present your units properly, you should have no problem finding a buyer quickly. If you price over market, or don’t show it well, the property will sit. Buyers are active, but still picky.
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.
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.
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.