By The Numbers: Downtown’s Shrinking Inventory

By The Numbers: Downtown’s Shrinking Inventory

The data supports what we all see – demand exceeds supply for downtown condos, especially dwellings priced under $500,000.  May was the first month ever that both the average and median price per foot for a downtown resale was over $400/ft.

At the extremes, asking prices for new construction high-luxury condos are approaching $1000 per foot, and there are several recently recorded transactions between $700-$800 per square foot.

Downtown condo inventory as of 6/7/2013

1) total resales available = 49
2) total new construction available = 77 est.

As of this post, there are only 13 units for sale under $500,000, and built within the past 15 years, in all of downtown Austin.  This leaves us with just over one month of inventory available for the largest segment of condo buyers in downtown’s core.

The lack of new product in the market is putting significant upward pricing pressure on resales.  With no new condo development planned in downtown, as interest rates remain low, resale prices will continue to rise to meet the demand.

DT Resale Chart - May TTM - MaxMin

You’ll recall that back in January, for the first time, the average sales price of a new construction downtown condo exceeded, $1,000,000.  There were 14 closings in May for new construction condos: the Austonian, W Hotel, and Four Seasons Residences.  Spring is sold out.  [UPDATE: The Four Seasons is sold out, with contracts pending.]  The W and Four Seasons could officially be sold out after another couple months of sales and pending contracts close.  The Austonian has a pretty good inventory remaining, but soon lacking any competition sales could accelerate quickly.

May 2013 Resale Statistics

- Total sales volume (resales only) =  $12,717,900
- # of resale transactions = 22
- avg price per foot = $453
- median price per foot = $424
- avg sales price = $578,086
- avg sales price to list price (SP/LP) = 97%
- avg condo size = 1275 sq. ft.
- avg price per bedroom = $343,727
- avg days on market (DOM) = 43 days

May 2013 New Construction Statistics

- # of new construction transactions = 14
- avg price per foot = $700-$800/ft est.
- Total new construction sales volume =  not reported

Downtown Austin New Construction Closings - Through June 7th, 2013

ProjectDate of
1st Closing
# of
Closed Units
(Clerk)
# of
Original Units
(TCAD)
% Units
Closed
# of
Remaining Units
Average
# of Days
Per Sale
Trending Completion Date (estimated)
TOTALS39347084%77
Four Seasons ResidencesMay 7, 201014014895%88July 2013
W Hotel ResidencesJanuary 10, 201114015988%196September 2013
The AustonianJune 10, 2010
113163
69%5010June 2014
The data was updated on June 7th, 2013. Any closings since then are not reflected. Only deed records counted and adjusted based on information from respective buildings' sales offices. Data does not reflect units currently under contract. Deed records for parking spaces and storage units have been removed. Combined units are divided into their respective original units when possible to determine.

DT Resale Chart - May TTM

About Jude Galligan

Jude Galligan, REALTOR, Principal of REATX Realty and publisher of Downtown Austin Blog (aka. "DAB"), spends his time matching remarkable people with remarkable properties in Austin’s urban core. A resident owner in downtown Austin, Jude serves on the Board of the Downtown Austin Alliance (DAA) and the City of Austin Downtown Commission. Contact Jude.

Comments

  1. It would be great to add the new Seaholm Residences to these charts.

  2. avatar Terry Mitchell says:

    Jude,
    This trend will continue. With FNMA continuing to limit new condos (not a legal limitation, but a practical one), prices have to go up. If buyers are waiting for a slowdown, it will not happen in the next couple of years.

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Based on information from the Austin Board of REALTORS ® (alternatively, from ACTRIS) for the period through 11/23/14 6:01 PM PST. Neither the Board nor ACTRIS guarantees or is in any way responsible for its accuracy. All data is provided “AS IS” and with all faults. Data maintained by the Board or ACTRIS may not reflect all real estate activity in the market.

Information being provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

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