Eleven Oaks Realty is proud to present their October 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 October 2020.
Austin Multi Family Properties Under Contract Up 12%
In October 2020, 25 multi-family properties went pending (under contract) in Austin compared to 38 in October 2019, showing a 13% (34 property) decrease in year over year numbers. The multi-family market picked up steam in the summer and fall and seems to be slowing down as we head into winter. Could also be there is not enough supply on the market for buyers to choose from, so there are less overall sales.
Austin Multi Family Property Median Price Saw a 12% Increase
The median home price of a multi-family property in Austin in October 2019 was $415,000 compared to $463,600 in October 2020, marking a 12% ($48,600) 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.
30% Decrease in Austin Multi Family Property Inventory
In October 2020, we saw 2.0 month of inventory on the market, compared to 2.9 months of inventory in October 2019, showing a 30% (0.9 month) decrease in year over year numbers. We are in extreme seller’s market territory.
Time to Sell Multi Family Property in Austin Down 53%
In October 2020, it took 20 days to sell a multi family property in Austin, on average, compared to 42 days in October 2019, marking a 53% (22 day) decrease in year over year numbers. Because of the low levels of inventory and increased competition, buyers who want to buy multi-family properties are having to act quicker this year than last.
Number of Multi Family Properties Taken Off the Market Saw a 14% Decrease
In October 2019, there were 14 multi family properties taken off the market compared to 12 in October 2020, marking a 14% (2 property) decrease 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 13%
In October 2020, Austin saw a 13% increase in the number of multi family properties sold in year over year numbers. In October 2020 there were 32 multi family properties that sold versus 36 in October 2019, marking a 13% (4 home) increase in year over year numbers. The investment property market in Austin is still strong, despite getting deep into fall when we typically see a slow down.
Number of Multi Family Properties on the Market Down 46%
In October 2020, we had 87 multi-family properties for sale in Austin, compared to 161 in October 2019, showing a 46% (74 property) decrease in year over year numbers.
14% Increase in the Number of Multi Family Properties Listed for Sale
In October 2020, we saw 49 multi family properties introduced to the market compared to 43 in October 2019, showing a 14% (6 property) increase in year over year numbers. It seems this month more multi-family property owners have decided to list their homes than in any other month since June. Perhaps they’ve seen the numbers and decided to take advantage before winter came.
Supply Down 46% and Demand Up 13%
This month we saw a 46% decrease in supply (number of properties for sale) and a 13% increase in demand (number of sold properties).
Median for Sale Up 9% vs Median Sold Price Up 12%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 9% increase in the median for sale price and a 12% 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 $495,000 in October 2019 to 540,000 in October 2020, showing a $45,000 increase. The median sold price of a multi-family property in Austin went from $415,000 in October 2019 to $463,600 in October 2020, showing a $48,600 increase.
Source: Clarus Market Metrics, ACTRIS Sold Data
October 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 October 2020 Austin multi family sales below. The most expensive property that sold in October 2020 sold for $915,000 and the least expensive multi family property sold for $325,000. Multi family properties ranged in size from 1,380 sqft – 4,188 sqft with an average size of 2,364 sqft. The average price per square foot for a multi family property that sold in Austin in October 2020 was $220.44 with the lowest being $143.74/sqft and the highest being $373.19/sqft. It took, on average, 12 days to sell a multi family property in Austin and sellers received, on average, 100.92% 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||36|
|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 2 months, we are in a strong sellers market. Combine that with a 46% decrease in supply and a 13% increase in demand and we have extremely favorable market conditions for sellers. Median price is up 12% 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), so we know how to get top dollar. If you want the same result, 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.