Eleven Oaks Realty is proud to present their November 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 November 2015.
Austin Multi Family Properties Under Contract Up 40%
In November 2015, 35 multi-family properties went pending (under contract) in Austin compared to 25 in November 2014, marking a 40% increase in year over year numbers.
Austin Median Multi Family Property Median Price Up 3%
The median home price of a multi-family property in Austin in November 2014 was $266,000 compared to $275,000 in November 2015, marking a 3% 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.
5% Decrease in Austin Multi Family Property Inventory
In November 2015, we saw 2.3 months of inventory on the market, compared to 2.4 months of inventory in November 2014, showing a 5% decrease in year over year numbers.
Time to Sell Multi Family Property in Austin Up 36%
In November 2015, it took 45 days to sell a multi family property in Austin, on average, compared to 33 days in November 2014, marking a 36% (12 day) increase in year over year numbers. It seems investors are taking much longer to make decisions this year than last year.
Number of Multi Family Properties Taken Off the Market Up 45%
In November 2014, there were 11 multi family properties taken off the market compared to 16 in November 2015, marking a 45% (5 property) increase city wide. As with all segments of the Austin real estate market, we are seeing more properties taken off the market this year than we saw last year. It seems that some sellers put their properties on the market at an unrealistic number. When they couldn’t get it, they gave up instead of reducing the price to a more realistic level.
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 33%
In November 2015, Austin saw a 33% decrease in the number of multi family properties sold from November 2014 to November 2015. In November 2015, we saw 22 multi family properties sell in Austin compared to 33 in November 2014 marking a 33% (11 property) decrease in year over year numbers. Not only did we see a decrease in year over year numbers, but November 2015 numbers were as low as we’ve seen all year.
Number of Multi Family Properties on the Market Up 36%
In November 2015, we had 132 multi family properties for sale in Austin, compared to 97 in November 2014, showing a 36% increase in year over year numbers.
Number of Multi Family Properties Listed for Sale Up 70%
In November 2015, we saw 46 multi family properties introduced to the market compared to 27 in November 2014, marking a 70% (19 property) increase.
Supply Up 36% and Demand is Down 33%
This month we saw a 36% increase in supply (number of properties for sale) and a 33% decrease in demand (number of sold properties). The increase in supply and decrease in demand is another indication now is the time to buy investment property in Austin.
Median for Sale Up 5% vs Median Sold Price Up 3%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 5% increase in the median for sale price and a 3% increase in the median sold price of a multi family property in year over year numbers.
Source: Clarus Market Metrics, ACTRIS Sold Data
November 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 November 2015 Austin multi family sales below. The most expensive property that sold in November 2015 sold for $722,577 and the least expensive multi family property sold for $190,800. Multi family properties ranged in size from 1,290 sqft – 3,064 sqft with an average size of 2,063 sqft. The average price per square foot for a multi family property that sold in Austin in November 2015 was $167.72 with the lowest being $88.33/sqft and the highest being $326.25/sqft. It took, on average, 15 days to sell a multi family property in Austin and sellers received, on average, 97.50% of their original list prices.
| Unit Count | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM | |
|---|---|---|---|---|---|---|---|---|---|
| Min | 2 | 1,290 | $195,000 | $90.28 | $190,800 | $88.33 | 85.14% | 76.80% | 0 |
| Max | 3 | 3,064 | $839,000 | $326.25 | $722,577 | $326.25 | 108.89% | 108.89% | 71 |
| Avg | 2 | 2,063 | $351,414 | $170.95 | $342,410 | $167.72 | 98.69% | 97.50% | 15 |
| Median | 2 | 1,924 | $282,500 | $143.40 | $275,000 | $139.76 | 99.44% | 99.06% | 7 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | November 2015 |
| Property Type | Multi Family | Number Sold | 22 |
| 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. Not only are we seeing a seasonal slowdown, but we are also seeing a slowdown from last year’s numbers. Supply is up 36%, demand is down 33% and prices haven’t increased significantly. When you consider the rent increases from last year, you’ll likely get a better ROI by buying this year.
But, if you’re looking to buy an investment property in Austin, you’ll have to act quickly. If this Spring is anything like the last several Spring’s, demand will pick up in January. Though it is taking about a month and a half to sell a multi-family property now, that number has been in the teen’s recently, which means more competition. If you’re looking to get the best deal, 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.
If you’re looking to sell your multi-family property, it isn’t the worst time to do that either. With an average time on market at 45 days, only 2.3 months of inventory on the market and median sold price up 3%, 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.
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.
Leave a Reply