Eleven Oaks Realty is proud to present their October 2016 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 2016.
Austin Multi Family Properties Under Contract Down 3%
In October 2016, 33 multi-family properties went pending (under contract) in Austin compared to 34 in October 2015, marking a 3% decrease in year over year numbers.
Austin Median Multi Family Property Median Price Up 15%
The median home price of a multi-family property in Austin in October 2016 was $305,000 compared to $264,500 in October 2015, marking a 15% 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.
26% Decrease in Austin Multi Family Property Inventory
In October 2016, we saw 1.9 months of inventory on the market, compared to 2.6 months of inventory in October 2015, showing a 26% decrease in year over year numbers. This month, we saw another decrease in one month changes as well. It seems inventory for multi-family properties is getting leaner as we approach Winter. Typically we see the opposite trend.
Time to Sell Multi Family Property in Austin Up 21%
In October 2016, it took 26 days to sell a multi family property in Austin, on average, compared to 22 days in October 2015, marking a 21% (5 day) decrease in year over year numbers. Time to sell multi family properties are usually all over the place. Part of it is the low number of sales every month, which can heavily weight the average.
Number of Multi Family Properties Taken Off the Market Up 50%
In October 2015, there were 8 multi family properties taken off the market compared to 12 in October 2016, marking a 50% (4 property) increase 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 32%
In October 2016, Austin saw a 32% decrease in the number of multi family properties sold from October 2015 to October 2016. In October 2016, we saw 25 multi family properties sell in Austin compared to 37 in October 2015 marking a 32% (12 property) decrease in year over year numbers.
Number of Multi Family Properties on the Market Down 17%
In October 2016, we had 109 multi-family properties for sale in Austin, compared to 131 in October 2015, showing a 17% (22 property) decrease in year over year numbers.
34% Decrease in the Number of Multi Family Properties Listed for Sale
In October 2016, we saw 35 multi family properties introduced to the market compared to 53 in October 2015, showing a 34% (18 property) decrease in year over year numbers.
Supply Down 17% and Demand Down 32%
This month we saw a 17% decrease in supply (number of properties for sale) and a 32% decrease in demand (number of sold properties). It seems both buyers and sellers are taking a step back and re-evaluating their strategy.
Median for Sale Up 22% vs Median Sold Price Up 15%
This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 22% increase in the median for sale price and a 15% 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 $349,000 in October 2015 to $425,000 in October 2016, showing a $76,000 increase. The median sold price of a multi-family property in Austin went from $264,500 in October 2015 to $305,000 in October 2016, showing a $40,500 increase.
Source: Clarus Market Metrics, ACTRIS Sold Data
October 2016 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 2016 Austin multi family sales below. The most expensive property that sold in October 2016 sold for $650,000 and the least expensive multi family property sold for $200,000. Multi family properties ranged in size from 1,411 sqft – 4,144 sqft with an average size of 2,244 sqft. The average price per square foot for a multi family property that sold in Austin in October 2016 was $152.20 with the lowest being $88.62/sqft and the highest being $328.41/sqft. It took, on average, 16 days to sell a multi family property in Austin and sellers received, on average, 96.84% of their original list prices.
|Unit Count||SqFt||List Price||LP/SqFt||Sold Price||SP/SqFt||SP/LP||SP/OLP||ADOM|
|Status||Sold||Sold Date||October 2016|
|Property Type||Multi Family||Number Sold||25|
|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 only 1.9 months of inventory, the Austin multi-family property market is still a seller’s market. Even though demand for multi-family properties decreased 32% and supply also decreased by 17%, buyers are still willing to pay 15% more than they were last year. It might take you some extra time to sell compared to last year, but most sellers are rewarded with more money. Spend some time preparing your property to meet the market and you’ll have no trouble finding a buyer 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 a multi-family property, we are approaching one of the best times of year to do so. Historically, Winter months have been the best time for buyers to get a good deal on a multi-family property. Though we expect inventory to continue to decrease, we also expect demand to decrease, so you won’t have as much competition. To be successful, you’ll want to be proactive in your search and decisive when you find a property that meets your criteria. Take advantage of the decrease in demand and you just might be able to negotiate a better deal now. 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.
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.