Downtown Austin Condo Prices Drop in November

Downtown Austin Condo Prices Drop in November

downtown austin condo trends nov 2010

Judging by the average numbers, November was a rough month for resales of downtown Austin condos.  Conversely, luxury condos continue to post strong numbers for the second month in a row.  Back in October, I was surprised by the large number of closings we observed in the downtown Austin’s top-tier condo buildings.  The ABJ followed up with a story saying “Verdict’s in: Austin condos did work.”

Top-tier (new buildings)
While the high-end market continues to show good numbers, it’s not clear to me how many of these closings are from original reservations, rather than new purchase contracts (within the past 120 days).

-Four Seasons shows 49 closed units, six closed in November.

Austonian shows 32 closed units, two closed in November.

-Spring shows ~165-170 closed units closed, nine closed in November.  It should be noted that these were, in fact, all new contracts.

Resales
Using data available on Nov 30th, 11 downtown austin condos closed at an average $252 per square foot.  That’s the lowest average price since August of 2009, and is 19.5% lower than the average resale price compared to November of last year.  Compared to downtown condo sales in October, prices were down 14%.  Also interesting, average days-on-market (DOM) was 118 days – not surprising to see closing prices averaging 12% less than original asking prices.

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W Hotel Residences Sneak Peek

W Hotel Residences Sneak Peek

from the vantage point of the pool deck

Members of the DANA were provided with a backstage pass to downtown Austin’s W Hotel Residences. We’ve always admired the sleek monolithic design of the building, and even through the construction dust you can envision the interior will make a similar impact.

DANA members on the 37th floor of W Hotel Residences

The contractor is expected to hand the keys over to the hotel portion in September/October. The doors won’t be open, but that should be the time when the hotel can begin to furnish everything. The Austin City Limits venue and residential condos will be ready in Q1 of 2011.

The most significant milestone will be the removal of the street barriers mid-summer! This is great news for any resident or retailer in the 2nd Street District.

Flickr Slideshow

mezzanine level seating for the Austin City Limits venue

W Hotel Sneak Peak Of Facade

Thanks to Priller over at SkyscraperPage for the pic of the facade beginning to take form at the W Hotel (aka. Block 21 Residences) in downtown Austin.

W-Hotel Facade Taking Shape

W Hotel May Need More Cash

Just found this article in the ABJ. Once $128MM in construction financing is spent, Stratus and Canyon-Johnson will need to find additional sources of capital. From a buyer’s perspective, I would want to see that financing in place before entering into a contract.

From StreetInsider.com

“The joint venture is aggressively pursuing other options for financing the future construction costs of the W Austin Hotel & Residences project after the required capital contributions are made. Such options may include additional equity contributions by Stratus and Canyon-Johnson, financing from other financial institutions, admitting new equity partners, or a combination of these alternatives. If the joint venture does not secure project financing from a third-party lender, or if Stratus or Canyon-Johnson is unable to make required additional future capital contributions to the joint venture, the joint venture may be required to delay further construction of the project until additional financing is available. “

-Jude