Downtown Austin Blog

downtown Austin's real estate and neighborhood blog

HOLY COW: October Residential Transactions

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I’m blown away by the number of closings that occurred in October for new luxury condos in downtown Austin.  Total number of downtown Austin condo transactions in October is confirmed at 29 30 closings! Resale data shows eight resale transactions, two of which were over $1MM.  Here’s the kicker: there were a combined 21 closings at the Four Seasons Residences, Spring, and The Austonian!

I spent extra time this month confirming transaction reports at the top-tier buildings.  “Spin” was minimal and there is genuine transaction velocity.

October Highlights:

  1. two $1MM+ resale transactions (not including developer sales at top-tier buildings)
  2. The Austonian shows 30 closed units, nine in October.
  3. The Four Seasons Residences shows 43 closed units, six in October.
  4. Spring Condos closed six seven in October.
  5. DANA’s Downtown Living Tour was the biggest ever with over 1000 attendees.
  6. W Hotel is hiring its staff, and buyers with contracts are anxiously awaiting their Q1 2011 move in date

One not so bright spot in the data: the number of resale transactions is down year-to-year, from 18 in October of 2009 to just eight this past month.  The data below highlights last month’s aggregate sales statistics for MLS Area “DT”.

MLS resale statistics

Investors and economic contrarians, like me, who demand value should continue to be on the prowl for deals on downtown Austin condos by focusing on the resale market.  Especially during the winter months, increased seasonal buying power is evident.  I’m working one short sale deal right now, and I’ve targeted others for my clients.  For example, I’m tracking a 2bd/2ba at Milago that can be purchased for under $299,900 SOLD (inquire with me).

The average resale price remains steady at $294.55 per square foot, compared to $293.65 psf in October 2009.  The chart below shows downtown resale transactions.  Notice the spike in buying activity during the springtime.  Now, notice the subsequent fall off…  that’s a buying opportunity. 🙂

-Jude

MLS resale trends

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B-Cycle Demonstration @ Austin City Hall

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I’ve been an advocate for a robust bicycle sharing system since I first used BIXI system in Montreal. BIXI was how I got around the city core during my four day visit.  Recently, Minneapolis hosted a delegation of Austinites and they introduced us to their Nice Bike system. Yours truly ended up in a photo.

It’s my belief that a bike share system should be an integral part of the transit discussion.  For distances of less than 1 mile, these are cost-effective systems of getting urban-Austinites and visitors where they want to get to.  A large bike sharing network is also superb recreational amenity.

Yesterday, I was excited to visit City Hall to checkout the B-Cycle shared bicycle program demo. This system is currently in place in Denver, though it has fewer stations than the Nice Bike or BIXI system in Minneapolis and Montreal, respectively.

All of these systems use a three-geared bike that’s easy to use. The bikes include a basket and a lock. The ergonomics encourage a leisurely and comfortable ride. From the B-Cycle FAQ, we learn that fees to use the system can be specified by the city or promoter, but usually include an annual, monthly, weekly, daily and single use fees. In Denver, a 24 hour membership cost $5. This doesn’t mean you rent the bike for 24 hours. Rather, for 24 hours, you can quickly pickup/drop off bikes at any station.  The first 30 minutes are free, subsequent 30 minutes have escalating fees.

Bike sharing systems like B-Cycle market themselves as being scalable, and therefor easy to buy into. However, the utility of these systems grows along with the number of stations. A modest investment in too few stations, or poorly located stations, could result in under-adoption and quickly be the death of the system.

For a city that likes to be outside and champions a progressive pace of life, the future is bright for bike sharing in Austin.

AMLI on 2nd Retail Construction Update Pics

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Last night we snapped some pics of the construction of the mezzanine level of AMLI on 2nd’s retail space along 2nd Street. According to AMLI the deal with Violet Crown is still solid and we can expect an arthouse movie theater in the near future. It appears from the rendering that the entrance will be the staircase and elevator next to BoConcept.

-Jude

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Do UT Students Use/Care About MetroRail?

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Six months after the opening of the MetroRail… Downtown Austin Blog contributor, Nicole Sanseverino, hops on board the Red Line with an update on just how well the $110 million dollar project is doing.

The MetroRail makes its way from Leander to Downtown Austin on 32-miles of existing freight tracks.  It’s a commuter rail that runs only during peak traffic hours in the morning and evening.  UT students ride for free using their IDs.  But, some students don’t even know it exists…

“The MetroRail… I don’t know anyone who takes it,” said one UT student.

According to Cap Metro, less than one percent of the UT community take advantage of the rail. One student who lives in Round Rock says the rail is a convenient way to get to class.

“It’s quick, it’s calm, sometimes I can sleep on it. I don’t get sick like on the bus,” said UT student Anke Sanders.  But, she does wish the rail operated at other times during the day.  “If it could ran more often especially during weekends maybe to go downtown for dinner or something that’d be ideal,” Sanders said.

If the City’s proposed Mobility Bond passes in November, it will launch an effort to expand the rail. CapMetro approved mid-day service beginning in January, but doesn’t have any concrete plans to increase the actual infrastructure of the rail.

“We don’t have any immediate plans for building more. I think what people would see first would be maybe purchasing more vehicles, expanding these rail stations,” Cap Metro spokesperson Misty Whited said.

After its first six months, the MetroRail is averaging 800 riders per day, but the city of Austin and CapMetro hope that as the population increases, so will ridership.

“We think it’s a great success,” Whited said. “We’re operating very well and efficiently, we just would like to see some more riders of course, but with any new service it takes time to develop that ongoing ridership patterns that you would like to see.”

Despite some bumpy tracks near its beginning, the rail chugs along.

-Nicole