The Annual AustinTowers | urbanspace Condo Sales Report
2010 Analysis: Downtown Austin Condo Sales
Despite the tough economy and weak national mortgage market, 2010 downtown Austin condo sales increased 50% over 2009 results. With 168 downtown Austin condo sales tracked through the Austin Multiple Listing Service (MLS) and with prices just 1% lower than 2009, 2010 was a surprisingly strong sales year.
For downtown Austin, this is great news. With more than 2,000 new downtown condo units built downtown in the last decade, overcapacity and the real estate downturn threatened to depress condo prices. The 2010 sales results show that the market remains quite strong given the difficulties facing the broader real estate and mortgage markets.
While sales volumes increased substantially -- not including additional non-MLS sales at the Austonian, Four Seasons, Spring, and BartonPlace -- market pricing remained essentially unchanged at $294 per square foot - a 1% decline from $296 / sq foot in 2009. Because the average unit size increased by 3% to 1,142, average sales price increased 4% from $330K to $344K.
2010 Downtown Condo Sales: 2009 v. 2010
| Month | Sales | Avg. Price | $/SF | Avg SF | Avg Year | % Ask | ADOM |
2009 | 112 | $330,344 | $296 | 1,106 | 1990 | 94% | 88 |
2010 | 168 | $343,983 | $294 | 1,142 | 1992 | 95% | 99 |
Change | 50% | 4% | -1% | 3% | 1.4 | 2% | 13% |
A close look at the 168 recorded MLS transactions revealed the following highlights:
- 360 was the downtown project with the most sales (38) and the highest $ / SF ($378)
- The average time to sell a condo was 100-days, a 12-day increase from 2009.
- 8 units sold for $1 million or more during 2010 compared with 2 in 2009 and 1 in 2008. 5-Fifty-Five, the condo building over the Hilton hotel, had the most million dollar sales with 3 during 2010.
- 38 units sold for less than $200,000 with the least expensive condo selling for $86,000.
- Austin City Lofts saw the sales price per unit at $674,643 while Greenwood Towers, built in 1966, saw the lowest average price per unit at $114,500
- Units sold the fastest in the Sabine, a recent condo conversion project, with an average of just 34-days on the market. Units sold slowest at Plaza Lofts with an average of 341 days on the market.
While 2010 was a very strong year compared to 2009, it's interesting to compare 2010 to 2008 --- the first year that many of the new projects hit the market. In comparison, 2010 saw volumes increase 29% of 2008: from 130 to 168 units. Price per square foot decreased 4% from $308 to $294. Average days on market -- the time required to sell the average unit -- increased by a week to 100 days.
2010 Downtown Condo Transactions by Year
Month | Sales | Avg. Price | $/SF | Avg SF | Avg Year | % Ask | ADOM |
2008 | 130 | $345,856 | $308 | 1,126 | 1983 | 96% | 93 |
2009 | 112 | $330,344 | $296 | 1,106 | 1991 | 94% | 88 |
2010 | 168 | $343,983 | $294 | 1,142 | 1992 | 95% | 100 |
An analysis of month-by-month results showed that 2010 started weak and ended relatively strong. The year began with just 14 sales in the first two months and accelerated into the summer months. Interestingly enough, downtown condo seasonality matches that of suburban neighborhoods where families tend to move in the summer to avoid changing schools mid-year. Even though very few children live in downtown Austin, the condo market seems to follow the same mont-by-month pattern. December, typically a weak month, was very strong wit 19 sales.
2010 Downtown Condo Transactions by Month
Month | Sales | Avg. Price | $/SF | Avg SF | Avg Year | % Ask | ADOM |
Jan-10 | 6 | $274,547 | $291 | 953 | 2005 | 96% | 127 |
Feb-10 | 8 | $291,938 | $292 | 1,002 | 1979 | 94% | 50 |
Mar-10 | 18 | $476,403 | $316 | 1,469 | 1996 | 93% | 115 |
Apr-10 | 14 | $294,263 | $273 | 1,061 | 1985 | 96% | 128 |
May-10 | 24 | $258,967 | $285 | 934 | 1976 | 96% | 118 |
Jun-10 | 18 | $387,241 | $324 | 1,160 | 1999 | 95% | 100 |
Jul-10 | 14 | $338,192 | $298 | 1,121 | 1999 | 96% | 74 |
Aug-10 | 16 | $330,088 | $298 | 1,056 | 2004 | 94% | 57 |
Sep-10 | 12 | $221,745 | $282 | 786 | 1993 | 96% | 113 |
Oct-10 | 8 | $570,625 | $295 | 1,834 | 1995 | 96% | 74 |
Nov-10 | 11 | $264,200 | $258 | 1,032 | 1984 | 94% | 124 |
Dec-10 | 19 | $409,346 | $292 | 1,341 | 1996 | 96% | 96 |
When buying a downtown condo unit, most buyers select the building they want to live in before picking the specific unit. This is why we organize listings by project to help buyers. The fact is, it's the building that will set the value of your unit. There is very little that can be done to a unit to improve the resale value beyond the building's return. The project you pick will determine your financial return.
For this reason, it is very important to understand values, time on market, and sales volumes by building. In 22010, 360 was the highest valued at $378 / SF and had the most transactions with 38 sales during the year. The average 360 unit sold for $375,779 for just 960 square feet. The second highest selling project -- and one of the fastest moving in terms of days on market -- was Milago. Five Fifty 05, Austin City Lofts and Brazos Lofts saw the highest average sales price. Units in Five Fifty 05, the condo project set above the downtown Hilton hotel, saw average prices of $749,375 for a large 2,297 unit on average. During 2010, only 5 projects saw sales of $1M+ units: Five Fifty 05, 360, Austin City Lofts, Brazos Lofts, and the Nokonah.
2010 Downtown Condo Transactions by Building (Buildings w/ 2+ sales)
Project | Sales | Avg $ | $/SF | Avg SF |
| 360 Condominium | 38 | $375,779 | $378 | 960 |
Austin City Lofts Amd | 7 | $674,643 | $373 | 1,813 |
Nokonah Condo Amd | 6 | $433,004 | $337 | 1,216 |
Shore A Condo Amd The | 10 | $312,895 | $306 | 1,015 |
Brazos Lofts Condo Amd | 3 | $637,333 | $305 | 2,008 |
Five Fifty 05 Condo Amd | 8 | $749,375 | $299 | 2,297 |
Brown Bldg Lofts Condo Amd | 5 | $243,978 | $291 | 845 |
Plaza Lofts Condo Amd | 3 | $546,500 | $288 | 1,896 |
Milago Condo Amd | 22 | $264,817 | $265 | 992 |
Brazos Place Condo Amd | 4 | $207,050 | $255 | 804 |
Cambridge Condo Amd | 16 | $277,656 | $254 | 1,158 |
Railyard Condo Amd | 6 | $237,817 | $251 | 985 |
Avenue Lofts Condo | 3 | $241,667 | $242 | 1,013 |
Penthouse Condo | 6 | $136,533 | $215 | 635 |
Sabine On 05 Residential Condo | 8 | $198,563 | $205 | 987 |
Towers Town Lake Condo Amd | 7 | $276,929 | $194 | 1,427 |
Greenwood Towers Amd | 4 | $114,500 | $153 | 748 |
The following analysis may be the most revealing. If you want to know what you can buy for a budget, how best to invest downtown, or what drives condo values, the following price band analysis groups all 2010 downtown Austin condo sales by the final sales price. Of 168 transactions, 94 were between $100K and $300K --- a clear market sweet spot. As the price bands increase, units tend to get newer, bigger, and harder to sell. But there are a few interesting trends. Price per square foot for $1M + units is 64% higher than for units in the $200K - $300K price band. In general units priced over $500K cost $350 / SF or more and its under $300K cost $268/SF or less.
Another surprise came with the least expensive price band. The 4 sales priced under $100K took a surprisingly long time to sell, 106 days on average, compared to just 54 days for units in the next band up. Also, there was only 1 sale in the wide $750K to $1M price band and it took longer to sell than the unit in any other price band. Units priced over $1M took more 115 days to sell and sold for just 93% of the asking price. There were no units that sold for more than $2M.
2010 Downtown Condo Transactions by Sales Price Band
| # Sales | Avg # Rooms | Sale $ | AVG SF | $ /SF | Year Built | ADOM | % Ask | |
| < $100K | 4 | 2.8 | $91,400 | 515 | $178 | 1970 | 106 | 94% |
| $100K - $200K | 34 | 3.2 | $169,097 | 718 | $236 | 1986 | 54 | 96% |
| $200K - $300K | 60 | 3.7 | $257,099 | 961 | $268 | 1992 | 109 | 96% |
| $300K - $500K | 48 | 4.7 | $366,486 | 1,200 | $305 | 1995 | 108 | 95% |
| $500K - $750K | 13 | 5.0 | $574,954 | 1,636 | $351 | 2002 | 125 | 95% |
| $750K - $1M | 1 | 5.0 | $932,500 | 2,422 | $385 | 2003 | 57 | 97% |
| $1M - $2M | 8 | 8.4 | $1,281,250 | 3,300 | $388 | 1989 | 115 | 93% |
Additional Analysis & Downtown Austin Condo Resources:
For regular downtown Austin condo news and analysis, read the AustinTowers blog.
Additional Resources:
AustinTowers Blog: Downtown Condo News
AustinTowers | urbanspace Downtown Condo Index
AustinTowers Condo Listings by Building
AustinTowers Downtown Austin Condo Guide
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