The Austin Condo Market – September Sales by Price Band

When a market starts to turn south, the first sales to dip are in the condo market. While condos can be a cheaper alternative to buying a home, they also attract a smaller buying pool than homes. The 180 condo sales in Austin represent about 10% of all residential sales during the month of September. Historically, condo sales represent closer to 7-8% of all sales in Austin. This could point to a small trend of homeowners reconsidering how much they are budgeting for their primary residence and choosing a condo as a more economical option. 

As you can see from the chart above, about 96% of condo sales happen below $400,000; whereas only 87% of single family homes sales occurred below $400,000. The month’s of inventory report on the far right of the chart is showing that the lower price ranges are still selling well and overall, we have a balanced market. Buyers in the $200,000 and up range have more selection than they have ever had in the past. 

The portion of the Austin condominium market that is still receiving the most attention right now is the Downtown market. 

If you compare the overall market chart and downtown specific charts above, you will see a few similarities. For the most part, downtown resales over $400,000 have slowed to an inconsistent trickle. The main contributor is competition with the new condo projects. The Austonian (www.theaustonian.com), The Four Seasons Residences (residences.fourseasons.com) and The W Residences (www.block21residences.com) all have about 50% availability. Prices for these condos start in the mid $400’s and go well into the multi-million dollar range. If you are thinking of putting your condo on the resale market, do not make the mistake of ignoring these projects as competition with your condo. All three of these projects will be completed next year and will be more aggressive in their sales approach once they are complete. 

If you are concerned about the value of your condo, sign up for our Market Snapshot program. It is an amazing tool that you can read more about here: http://budurl.com/zaqk 

Look for a complete overview of the Austin real estate market, as well as a complete overview of the Austin condo market in the near future.

Patrick Birdsong, West Austin Properties, (512) 345-1252, [email protected]

Comments

[Austin Real Estate]

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