Eleven Oaks Realty is proud to present their March 2021 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 2021.
Austin Multi Family Properties Under Contract Up 117%
In March 2021, 39 multi-family properties went pending (under contract) in Austin compared to 18 in March 2020, showing a 117% (21 property) increase in year over year numbers. It seems multi-family property owners finally decided to put some of their inventory on the market.
Austin Multi Family Property Median Price Up 33%
The median home price of a multi-family property in Austin in March 2021 was $531,000 compared to $399,000 in March 2020, marking a 33% ($132,000) 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.
83% Decrease in Austin Multi Family Property Inventory
In March 2021, we saw 0.8 months of inventory on the market, compared to 5.1 months of inventory in March 2020, showing an 83% (4.2 month) decrease in year over year numbers. Again we are seeing extreme seller’s market inventory levels.
Time to Sell Multi Family Property in Austin Down 79%
In March 2021, it took 12 days to sell a multi family property in Austin, on average, compared to 57 days in March 2020, marking a 79% (45 day) decrease in year over year numbers. The median time to sell a multi-family home in Austin in March 2021 was 5 days, which is much more representative on how long buyers actually have to make a decision.
Number of Multi Family Properties Taken Off the Market Saw a 38% Increase
In March 2020, there were 8 multi family properties taken off the market compared to 11 in March 2021, marking a 38% (3 property) increase in year over year numbers. With the strength of this market, it’s hard to believe even one multi-family property was taken off the market. But, these are very likely due to unrealistic owners pricing way too high for condition. Buyers are willing to pay for properties they see as a value, but they aren’t willing to overpay.
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 March 2021, Austin saw a 12% decrease in the number of multi family properties sold in year over year numbers. In March 2021 there were 29 multi family properties that sold versus 33 in March 2020, marking a 12% (4 property) decrease in year over year numbers. Though we saw fewer sales, it certainly wasn’t because of less demand. With inventory at less than one month, there are plenty of buyers in the market willing to make a deal, but they don’t have any inventory to buy.
Number of Multi Family Properties on the Market Down 29%
In March 2021, we had 83 multi-family properties for sale in Austin, compared to 117 in March 2020, showing a 29% (34 property) decrease in year over year numbers. With rents going up, multi-family property owners aren’t willing to sell, especially since they likely can’t replace the investment with anything close to the returns they’re getting.
10% Increase in the Number of Multi Family Properties Listed for Sale
In March 2021, we saw 54 multi family properties introduced to the market compared to 49 in March 2020, showing a 10% (5 property) increase in year over year numbers. Despite the increase, it still didn’t put a dent in the pent up demand we are seeing in the market.
Supply Down 29% and Demand Down 12%
This month we saw a 29% decrease in supply (number of properties for sale) and a 12% decrease in demand (number of sold properties).
Median for Sale Up 18% vs Median Sold Price Up 33%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw an 18% increase in the median for sale price and a 33% 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 $529,900 in March 2020 to $625,000 in March 2021, showing a $95,100 increase. The median sold price of a multi-family property in Austin went from $399,000 in March 2020 to $531,000 in March 2021, showing a $132,000 increase.
Source: Clarus Market Metrics, ACTRIS Sold Data
March 2021 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 2021 Austin multi family sales below. The most expensive property that sold in March 2021 sold for $1,300,000 and the least expensive multi family property sold for $350,000. Multi family properties ranged in size from 952 sqft – 6,492 sqft with an average size of 2,304 sqft. The average price per square foot for a multi family property that sold in Austin in March 2021 was $282.83 with the lowest being $161.74/sqft and the highest being $468.06/sqft. It took, on average, 22 days to sell a multi family property in Austin and sellers received, on average, 104.03% 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||29|
|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 inventory at under 1 month, we are in extreme seller’s market territory. Combine that with a 29% decrease in supply and we have extremely favorable market conditions for sellers. Median price saw a 33% increase and we are seeing multiple offers and overbids in highly desirable areas. Get your properties listed now and take advantage of the increase in demand and decrease in supply.
Looking to sell? We sold the duplex that was the highest over list price in July 2020 (108.04% of the original list price), before the craziness started in the market, so we know how to get top dollar. If you want top dollar for your multi family property, make it 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.
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