Eleven Oaks Realty is proud to present their September 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 September 2020.
Austin Multi Family Properties Under Contract Up 12%
In September 2020, 37 multi-family properties went pending (under contract) in Austin compared to 33 in September 2019, showing a 12% (4 property) increase in year over year numbers. The multi-family market has picked up steam since the beginning of the coronavirus pandemic.
Austin Multi Family Property Median Price Saw No Change
The median home price of a multi-family property in Austin in September 2019 was $442,500 compared to $441,600 in September 2020, marking no change 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.
73% Decrease in Austin Multi Family Property Inventory
In September 2020, we saw 1.0 month of inventory on the market, compared to 3.6 months of inventory in September 2019, showing a 73% (2.6 month) decrease in year over year numbers. We are in extreme seller’s market territory.
Time to Sell Multi Family Property in Austin Down 51%
In September 2020, it took 16 days to sell a multi family property in Austin, on average, compared to 33 days in September 2019, marking a 51% (17 day) decrease in year over year numbers. Investors are making decisions much faster this year, and if they want to own a multi-family property in Austin, they have to. So much competition is causing a frenzy of activity.
Number of Multi Family Properties Taken Off the Market Saw a 67% Increase
In September 2019, there were 9 multi family properties taken off the market compared to 15 in September 2020, marking a 67% (6 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 43%
In September 2020, Austin saw a 43% increase in the number of multi family properties sold in year over year numbers. In September 2020 there were 40 multi family properties that sold versus 28 in September 2019, marking a 43% (12 home) increase in year over year numbers. Typically we see a drop off in activity in August, which we did see last month. But, it looks like investors are back at it.
Number of Multi Family Properties on the Market Down 45%
In September 2020, we had 88 multi-family properties for sale in Austin, compared to 160 in September 2019, showing a 45% (72 property) decrease in year over year numbers.
3% Increase in the Number of Multi Family Properties Listed for Sale
In September 2020, we saw 37 multi family properties introduced to the market compared to 36 in September 2019, showing a 3% (1 property) increase in year over year numbers. Either multi-family property owners don’t have confidence in the market or they are holding on not wanting to let go of the properties they have because the rents are so high.
Supply Down 45% and Demand Up 43%
This month we saw a 45% decrease in supply (number of properties for sale) and a 43% increase in demand (number of sold properties).
Median for Sale Up 9% vs Median Sold Price Saw No Change
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 no change 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 $490,000 in September 2019 to 532,000 in September 2020, showing a $42,000 increase. The median sold price of a multi-family property in Austin went from $442,500 in September 2019 to $441,600 in September 2020, showing a $900 increase.
Source: Clarus Market Metrics, ACTRIS Sold Data
September 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 September 2020 Austin multi family sales below. The most expensive property that sold in September 2020 sold for $1,650,000 and the least expensive multi family property sold for $301,000. Multi family properties ranged in size from 1,525 sqft – 4,771 sqft with an average size of 2,442 sqft. The average price per square foot for a multi family property that sold in Austin in September 2020 was $235.27 with the lowest being $129.57/sqft and the highest being $403.34/sqft. It took, on average, 14 days to sell a multi family property in Austin and sellers received, on average, 100.57% 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||38|
|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 just 1 month, we are in a very strong sellers market. Combine that with a 45% decrease in supply and a 43% increase in demand and we have extremely favorable market conditions for sellers. Median price hasn’t changed, but 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.