Central Austin Realty Bits

Austin, Texas home sales were up about 7% area wide in 2011 vs. 2010.  Some Austin neighborhoods saw even bigger sales increases.  Austin condos had a 1% sales increase. Many price segments and neighborhoods saw prices higher vs. 2010, while some remained flat.  The luxury market firmed again as higher priced homes in Central & West Austin, as well as Westlake, drew higher prices than the year before.   Inventory has changed quite a bit in the last 12 months.  The number of homes for sale continues to shrink as the number of homes for sale is 15% lower than a year ago. It would take about 4 months to sell all the homes currently on the market at the current pace city-wide--representing the lowest inventory-to-sales ratio in at least 3 years.   

Price segment matters.  The lowest priced properties (under 250k) have the lowest inventory vs. high sales rate, while the luxury segment has the highest number of homes for sale vs. sales rate, as is usually the case.  In general, Austin properties priced under $450,000 show the greatest demand relative to inventory, and thus upward pressure on prices in some areas.  I sold a couple of properties in 2011 for a higher price than they had last sold for about 2 years prior. 

Downtown Austin condo inventory is lower now too.  Active MLS listings downtown(which include some developer inventory), have declined by about 30%.  Developer inventory is dropping as almost all units under 500k have been sold and no new projects are coming on-line for at least the next 3 years (none are under construction). Resales will dominate this market in 2012 and 2013 at least, and already we are seeing signs that prices for units under $450,000 are firming in the most favored buildings, especially if they have good views.  The Austin luxury downtown condo  market has excess supply in my opinion...but sales continue to occur there, and prices are fairly steady.  There have been several multi-million dollar sales in the W, 555 Hilton and Austonian in the past few months.