For the first time, the average sales price of a new condo in downtown Austin is more than $1,000,000.
It’s not news that residences cost more than $1,000,000. It is news when we’re talking about averages! To be clear, we are focusing on new construction only, not resales (which have also had a banner year, and we’ll cover that in a future post.)
According to builder reports assembled by Capitol Market Research for new construction condos sold during the past 12 months:
- average price = $1,061,682
- average size = 1,701 ft.
- number new condos sold = 124
The data is provided to us monthly as an aggregate of the above four buildings. Anonymizing individual building sales was the only way to convince the developers to share their sales data. To qualify the average price, we can approximate a median price using the 12 monthly aggregate records we have.
- median monthly average price = $1,044,181 (min $777,813 to max $1,687,857)
The refrain which began in 2010 continues: there are no new downtown Austin condos being built. Nor have we seen any new site plans for downtown condos. Inventories continue to decrease (by 124 units in 2012) and residences are selling quickly at prices close to the asking price. An ancillary effect of this shrinking inventory is rising prices for resales.
By my estimation, when compared against TCAD records, only 115 new construction units remain. If interest rates remain low, the downtown Austin real estate market is on a trajectory to complete sales of new construction condos in 2013.
I’ll continue to provide detailed analysis of 2012 results over the coming weeks, including resales and analysis of building-by-building performance.