With all the downtown Austin luxury high rises at or nearing completion, it was recently reported that sales may be better than expected. The completed Four Seasons Residences and nearly completed W Residences are over 50% sold. The Austonian is at about 40% sold. Generally the homes in these towers start at about $500,000 and go up into the millions of dollars. The other new recently completed Spring Condominiums are approaching 65% sold out. Spring residences start in the low 200's.
These four towers represent over 700 mostly luxury condominiums downtown. About 53% of them are sold so far or 389 units. Undoubtedly, many of those contracts in the new buildings were signed a few years ago when these buildings first began marketing efforts. If you consider that sales efforts began about 3 years ago, and add the 66 MLS sales over $500,000 in the last 36 months outside these buildings, then you are looking at about 13 luxury condo sales per month in Downtown Austin.
At the rate of 13 sales per month, there is about a 2 year supply of luxury condosremaining in Downtown Austin. That may seem like alot but keep in mind that this sales rate occurred during 2 of the worst years for the U.S. economy in a lifetime. Also be aware that often, once a building is finished, the sales velocity increases because buyers can actually touch and feel the product so the rate of sales might increase along with the improving economy. There are no other luxury--or non luxury--downtown Austin condo projects under constructionor about to commence construction. Even if a new tower began construction tomorrow, it would take about 24 months to complete. The state of the credit markets and the time it takes to que up a new tower, dictates that probably nothing will get off the ground in at least the next year or maybe 2 or 3 years.
By the time these new luxury projects sell out, there will be no additional inventory for the Dowtown Austin luxury buyer. Inventory will be limited to resales and undoubtedly the choices will be much less than there is currently. The overall economy should be much improved by that time as well. With no new inventory coming on line in the luxury or sub luxury segment in the next several years, this may be a good time to buy Downtown. Whether prices increase in the coming years due to a lessened supply remains to be seen, but significant downward pressure on prices seems fairly unlikely if likely at all.
Contact me to learn more about Downtown Austin condominiums or to explore selling your home and moving downtown.
View Downtown luxury condos for sale here: http://trueaustinhomes.com/downtownluxury-.asp
View Downtown condos under $500,000 here: http://trueaustinhomes.com/downtowncondos-500k.asp
Jeff Harris
Broker
512-917-8142 Direct
Jeff Harris
Realtor/ Mortgage Broker
True Austin Properties
