Eleven Oaks Realty is proud to present their August 2015 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 August 2015.
Austin Multi Family Properties Under Contract Down 33%
In August 2015, 33 multi-family properties went pending (under contract) in Austin compared to 49 in August 2014, marking a 33% decrease in year over year numbers. With an increase in inventory and number of new multi-family properties listed, the multi-family market might be slowing down.
Austin Median Multi Family Property Median Price Up 36%
The median home price of a multi-family property in Austin in August 2014 was $238,000 compared to $324,500 in August 2015, marking a 36% increase in year over year numbers. Though we are seeing fewer sales, we are seeing significant increases in prices. The increase in prices could be discouraging investors to purchase as they wait to see where the market goes.
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.
86% Increase in Austin Multi Family Property Inventory
In August 2015, we saw 2.3 months of inventory on the market, compared to 1.2 months of inventory in August 2014, showing an 86% increase in year over year numbers. Though quite a significant increase in inventory, we usually see this large swing 2-3 times per year in the multi-family market.
Time to Sell Multi Family Property in Austin Down 7%
In August 2015, it took 25 days to sell a multi family property in Austin, on average, compared to 27 days in August 2014, marking a 7% (2 day) decrease in year over year numbers. Again this month, Austin investors seem to be the fastest to make a decision as the multi-family segment is the only segment of the market to average less than 30 days to sell.
Number of Multi Family Properties Taken Off the Market Down 8%
In August 2014, there were 13 multi family properties taken off the market compared to 12 in August 2015, marking an 8% (1 property) decrease city wide.
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 26%
In August 2015, Austin saw a 26% decrease in the number of multi family properties sold from August 2014 to August 2015. In August 2015, we saw 32 multi family properties sell in Austin compared to 43 in August 2014 marking a 26% (11 property) decrease in year over year numbers.
Number of Multi Family Properties on the Market Down 2%
In August 2015, we had 120 multi family properties for sale in Austin, compared to 122 in August 2014, showing a 2% decrease in year over year numbers. Investors who are able to increase rents yearly aren’t looking to unload their cash cows, especially if they purchased their multi-family properties years ago.
Number of Multi Family Properties Listed for Sale Up 28%
In August 2015, we saw 59 multi family properties introduced to the market compared to 46 in August 2014, marking a 28% (13 property) increase.
Supply Down 2% and Demand is Down 26%
This month we saw a 2% decrease in supply (number of properties for sale) and a 26% decrease in demand (number of sold properties). Again we see a decrease in the demand figures and that might not tell the whole story. With an increase in the number of multi-family properties for sale, it will be interesting to see if we had any pent up demand in next month’s report.
Median for Sale Up 33% vs Median Sold Price Up 36%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 33% increase in the median for sale price and a 36% increase in the median sold price of a multi family property in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
August 2015 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 August 2015 Austin multi family sales below. The most expensive property that sold in August 2015 sold for $883,275 and the least expensive multi family property sold for $175,000. Multi family properties ranged in size from 1,335 sqft – 3,870 sqft with an average size of 2,346 sqft. The average price per square foot for a multi family property that sold in Austin in August 2015 was $170.19 with the lowest being $83.93/sqft and the highest being $342.86/sqft. It took, on average, 24 days to sell a multi family property in Austin and sellers received, on average, 98.81% of their original list prices.
| Unit Count | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM | |
|---|---|---|---|---|---|---|---|---|---|
| Min | 2 | 1,335 | $179,900 | $90.44 | $175,000 | $86.56 | 89.61% | 89.20% | 0 |
| Max | 4 | 3,870 | $874,000 | $357.14 | $883,275 | $342.86 | 117.92% | 117.92% | 100 |
| Avg | 2 | 2,346 | $401,453 | $172.58 | $395,581 | $170.19 | 98.99% | 98.81% | 24 |
| Median | 2 | 2,002 | $321,500 | $147.51 | $324,500 | $143.62 | 99.10% | 98.20% | 7 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | August 2015 |
| Property Type | Multi Family | Number Sold | 32 |
| 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 an average time on market at 25 days, only 2.3 months of inventory on the market and median sold price up 36%, sellers who prepare their properties to meet the market will have no trouble finding a buyer who is willing to pay top dollar. 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, always be looking for good deals. Even though prices are up, so are rents. Be proactive and you might just be successful. Sellers who are serious about selling their multi-family properties will be competing to make their units most appealing to the qualified buyers in the market. If you are in the market for a multi-family property, make scouting new listings a priority. 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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