Challenged to articulate a narrative around 2011 downtown Austin real estate data, I’ve been keeping this post under wraps for a couple of weeks. Data is useful to me and my clients, but these numbers have little meaning without context and history.
How do I convey that the best news is no news at all?
Stability in the downtown condo market continues to be the story. Stability attracts the timid buyers from the sidelines. Those additional buyers embolden timid sellers to enter the market.
What forces are creating stability downtown? Low interest rates, shrinking inventory, and multi-generational demand for urban lifestyle. We can see the outcome of stability in the chart below: the gradually upward sloping trend line.
In 2011, if you were a seller in downtown Austin, then you did slightly better than sellers in 2010. If you were a buyer in downtown Austin in 2011, then you were more focused on lifestyle and proximity, rather than the post-bust discount pricing found in 2008-2009.
Looking back on the downtown Austin condo market in 2011, we see $77,688,824 in total resales over 200 resale transactions. Combined with an estimated $120,000,000 in downtown new construction sales from another 200 transactions, 2011 reflects a healthy real estate market, gradually trending up.
- The Austonian, W Hotel, Spring Condos, Four Seasons outsold the resale market in both gross sales volume and units sold. Each building has crossed the chasm.
- 2011 was the first year when more downtown condos sold for over $500 per foot than sold for less than 300 per foot.
- REO transactions remained low, but increased year-to-year from 9 to 13.
- Monthly average prices for downtown resales ranged between $275-350 per square foot.
- Monthly average prices for downtown new construction ranged between $543-617 per square foot.
- 2011 leaves us with 4.1 months of resale inventory. Currently there are 66 resale units for sale in downtown Austin.
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