Texas Property Insider- Austin Real Estate and Texas Coastal Real Estate Blog

Welcome to Texas Property Insider. The purpose of this blog is to provide accurate and helpful information about market trends and issues important to property owners in Central Texas and on the Texas Coast. You hear a lot of talk out there. You see the statistics, read the stories in the newspaper and you see practitioners regurgitate those same stories and statistics. There is more information available then ever before. But why is it, even after all of the stories and pundits have had their say, you still feel you can’t grasp what’s really happening in the real estate market?


There is a lot more to it than simple statistics and market info. These numbers are helpful and vitally important, but if taken at face value they can be misleading, even deceiving. As Mark Twain once said, “There are lies, damned lies and then there are statistics.” I created this blog to pull back the curtain on Texas real estate, interpret the market information and present it to you in a format that is both pithy and easy to digest.

Thursday, September 2, 2010

August West Austin Luxury Comps...

(Area defined by: North of 35th St., Lake Austin, 2222 & MO-Pac)

-As we discussed last time, activity in the luxury home market in Northern 1B has been significant. Throughout the summer much of the activity in has been in the entry luxury price range and the ultra luxury bracket with more sluggish sales just under $1 Million. Last month 2 ultra luxury homes were under contract. One of these homes closed ($2.2 mil sold for $1.9+ cash) and the other fell off ($1.4 mil). Notably a $2.4 Million waterfront home on Tortuga Trail went under contract this past month. The home is a tear-down and the price reflects its 2+ acres and main body Lake Austin frontage.

There are currently 35 luxury homes available in this area with 4 others currently under contract. During the month of August 7 luxury properties sold, yielding a one month absorption figure of 5 months of inventory, which is very positive. Over the last 3 months 17 luxury homes have sold. At this rate of absorption there is 6.176 months worth of inventory and very close to market equilibrium, down from 7.615 in July. The 4 pending homes signify slower activity, and anticipate activity to be down from last month.

Last month 6 new listings hit the market and pending sales are down from 8 to 4. Even so, we are pleased to see inventory levels in this area have decreased and are near equilibrium. This are is still posting solid activity in the entry level luxury market and the ultra luxury tier. Although, the inventory level of ultra luxury property has increased recently. Currently 46% (16) of the homes available in this area are priced over $1 million and of these homes 8 are listed for more than $3 million.

Final Thoughts: The activity below $1 million has been solid and accounts for the majority of the sales. We are still seeing strong signs in the ultra luxury market as one property sold for more than $1.9 million last month and another is currently under contract. I anticipate the activity under a million will continue to be solid, but the increase in ultra luxury home inventory could make it more difficult to find a real buyer.

Thanks,

Marcus P. Cox
Co-Owner Avalar Austin
Realtor®, ABR, GREEN, GRI, TRLP
Austin Board of Realtors Board of Directors 2010-2012
512.921.3111
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