New Market Data: 2008 Downtown Condo Sales Analysis
January 27, 2009 20:35 Filed in: Market
Analysis
With the help of urbanspace Realtors, we have
put together a comprehensive analysis of
recorded downtown Austin condo transactions in
2008. The analysis looks at MLS data capturing
2008 condo sales in area DT during the year
2008. Like all listing data, it excludes private
transactions that were not listed on the MLS.
This is a big exception considering that 360,
the Four
Seasons, the Austonian, and the W have
taken commitments for more than 500 units.
During the year, approximately 400 units were
sold at 360 alone.
The data does, however, provide a very clear view of the downtown resale market. It shows the price per square foot that buyers are willing to pay for real units, provides information on building-by-building sales prices, and shows how long it takes for units to actually sell. Here is the summary of 2008:
Market Summary - MLS recorded 130 downtown Austin condo transactions during 2008 with an average sales price of $345,856 which represents and average price per square foot of $308. Units sold for 95% of listing price in an average of 91 days. The project with the most sales on MLS was Milago with 25 transactions. Here are the details:
- 130 DT Condo Transactions in 2008
- Avg. Sales Price: $345,856
- Avg. Listing Price: $362,750
- Sales were 95% of Listing Price
- Avg. Sold $/SF: $308
- Avg. Listing $/SF: $322
- Avg. Days on Market: 91
- Avg. Unit Size: 1,126 Square Feet
Old v New - The MLS data clearly shows that the downtown Austin condo market is really 3 separate markets. The first market contains older units constructed prior to 1985 with an average age of 41 years. The second market is buildings constructed after 1998 when the current downtown boom started. The third market, which we have the least data on, is buildings currently under construction or recently completed. In particular, the high-end Austonian, W, and Four Seasons serve a much higher-end market than any of the current projects. Here are the details:
- Average Year Built, All Condo Sales: 1983
- Units Built Before 1985: 73
- Units Built 1985 - 1998: 0
- Units Built After 1998: 57
- Pre 1985 Avg $/SF: $278
- After 1998 Avg $/SF: $363
High & Low: In a market where affordability is an important issue, it is amazing to see that there were 16 transactions under $200K with an average days on market of 71 days. It shows that it is possible to find affordable units downtown.
- Least Expensive Sale: $107,000 in Greenwood Towers
- Most Expensive Sale: $1,100,100 in the Nokonah
- Lowest $/SF: $168 (for a unit in Towers on Town Lake)
- Highest $/SF: $571 (for a unit in Five Fifty Five Condos)
- # Units Under $200K: 18
- # Units Over $750K: 6
Transactions by Month: Sales results were cyclical with a summer peak and slower periods at the beginning and end of the year. The last quarter showed weakness resulting from the deterioration of the national economy.
Month - # Units
January - 5
February - 6
March - 14
April - 22
May - 13
June - 13
July - 10
August - 13
September - 13
October - 9
November - 8
December - 4
Over the next few years, as a significant quantity of transactions are conducted outside of the MLS, it will be difficult to gauge exactly what is happening with downtown Austin condo sales, especially on the high end. Over the next few months, as 360 resale transactions begin to hit the market, we'll have a clearer picture of the strength of the downtown market.
The data does, however, provide a very clear view of the downtown resale market. It shows the price per square foot that buyers are willing to pay for real units, provides information on building-by-building sales prices, and shows how long it takes for units to actually sell. Here is the summary of 2008:
Market Summary - MLS recorded 130 downtown Austin condo transactions during 2008 with an average sales price of $345,856 which represents and average price per square foot of $308. Units sold for 95% of listing price in an average of 91 days. The project with the most sales on MLS was Milago with 25 transactions. Here are the details:
- 130 DT Condo Transactions in 2008
- Avg. Sales Price: $345,856
- Avg. Listing Price: $362,750
- Sales were 95% of Listing Price
- Avg. Sold $/SF: $308
- Avg. Listing $/SF: $322
- Avg. Days on Market: 91
- Avg. Unit Size: 1,126 Square Feet
Old v New - The MLS data clearly shows that the downtown Austin condo market is really 3 separate markets. The first market contains older units constructed prior to 1985 with an average age of 41 years. The second market is buildings constructed after 1998 when the current downtown boom started. The third market, which we have the least data on, is buildings currently under construction or recently completed. In particular, the high-end Austonian, W, and Four Seasons serve a much higher-end market than any of the current projects. Here are the details:
- Average Year Built, All Condo Sales: 1983
- Units Built Before 1985: 73
- Units Built 1985 - 1998: 0
- Units Built After 1998: 57
- Pre 1985 Avg $/SF: $278
- After 1998 Avg $/SF: $363
High & Low: In a market where affordability is an important issue, it is amazing to see that there were 16 transactions under $200K with an average days on market of 71 days. It shows that it is possible to find affordable units downtown.
- Least Expensive Sale: $107,000 in Greenwood Towers
- Most Expensive Sale: $1,100,100 in the Nokonah
- Lowest $/SF: $168 (for a unit in Towers on Town Lake)
- Highest $/SF: $571 (for a unit in Five Fifty Five Condos)
- # Units Under $200K: 18
- # Units Over $750K: 6
Transactions by Month: Sales results were cyclical with a summer peak and slower periods at the beginning and end of the year. The last quarter showed weakness resulting from the deterioration of the national economy.
Month - # Units
January - 5
February - 6
March - 14
April - 22
May - 13
June - 13
July - 10
August - 13
September - 13
October - 9
November - 8
December - 4
Over the next few years, as a significant quantity of transactions are conducted outside of the MLS, it will be difficult to gauge exactly what is happening with downtown Austin condo sales, especially on the high end. Over the next few months, as 360 resale transactions begin to hit the market, we'll have a clearer picture of the strength of the downtown market.