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