Eleven Oaks Realty is proud to present their May 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 May 2020.
Austin Multi Family Properties Under Contract Up 32%
In May 2020, 41 multi-family properties went pending (under contract) in Austin compared to 31 in May 2019, showing a 32% (10 property) increase in year over year numbers. The multi family market is definitely seeing a surge after the coronavirus pandemic.
Austin Multi Family Property Median Price Saw a 1% Decrease
The median home price of a multi-family property in Austin in May 2019 was $405,000 compared to $400,000 in May 2020, marking a 1% ($5,000) 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.
55% Decrease in Austin Multi Family Property Inventory
In May 2020, we saw 1.4 months of inventory on the market, compared to 3.1 months of inventory in May 2019, showing a 55% (1.7 month) decrease in year over year numbers. This month is the complete opposite of last month as we are seeing more activity than this time last year. It will be interesting to see if this is just a month blip or if this trend will continue.
Time to Sell Multi Family Property in Austin Up 17%
In May 2020, it took 26 days to sell a multi family property in Austin, on average, compared to 23 days in May 2019, marking a 17% (4 day) increase in year over year numbers. Though we have seen a drop off in demand, we aren’t seeing the same major drop off in time to sell proving the buyers that are in the market are serious and ready to make a decision.
Number of Multi Family Properties Taken Off the Market Saw an 8% Increase
In May 2019, there were 12 multi family properties taken off the market compared to 13 in May 2020, marking an 8% (1 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 Down 59%
In May 2020, Austin saw a 59% decrease in the number of multi family properties sold in year over year numbers. In May 2020 there were 16 multi family properties that sold versus 39 in May 2019, marking a 59% (23 home) decrease in year over year numbers.
Number of Multi Family Properties on the Market Down 20%
In May 2020, we had 111 multi-family properties for sale in Austin, compared to 139 in May 2019, showing a 20% (28 property) decrease in year over year numbers.
32% Decrease in the Number of Multi Family Properties Listed for Sale
In May 2020, we saw 38 multi family properties introduced to the market compared to 56 in May 2019, showing a 32% (18 property) decrease in year over year numbers.
Supply Down 20% and Demand Down 59%
This month we saw a 20% decrease in supply (number of properties for sale) and a 59% decrease in demand (number of sold properties).
Median for Sale Up 15% vs Median Sold Price Down 1%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 15% increase in the median for sale price and a 1% 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 $445,000 in May 2019 to $510,000 in May 2020, showing a $65,000 increase. The median sold price of a multi-family property in Austin went from $405,000 in May 2019 to $400,000 in May 2020, showing an $5,000 decrease.
Source: Clarus Market Metrics, ACTRIS Sold Data
May 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 May 2020 Austin multi family sales below. The most expensive property that sold in May 2020 sold for $1,005,000 and the least expensive multi family property sold for $302,000. Multi family properties ranged in size from 1,616 sqft – 3,420 sqft with an average size of 2,108 sqft. The average price per square foot for a multi family property that sold in Austin in May 2020 was $221.48 with the lowest being $151/sqft and the highest being $377.54/sqft. It took, on average, 11 days to sell a multi family property in Austin and sellers received, on average, 99.12% 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||16|
|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. Though inventory is below 1.5 months, indicating a strong sellers market, demand is down 59% while supply is only down 20%. And, with median price down 1%, buyers are getting better deals this year than last. We are seeing fewer sales, but buyers are ready to act fast, so you can’t get complacent waiting. The best multi family properties sell quickly. Don’t get beat out because you thought you had time to make a decision. Have your criteria flushed out so you are ready to act when the right property is listed for sale.
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.