The National Association of Realtors has released their mid-year analysis of condo values in markets across the U.S. The report shows that Austin has performed well compared to most of the markets around the country. With one year price appreciation of 1.9% and 30-month appreciation of an amazing 27.4%, Austin values have managed to remain strong.
Since the report looks at average values of sold condo units listed in the MLS, it does not take changes in housing mix (expensive new projects raise the average) or changes in buying trends (the market for low end units evaporating would raise the average). So, as usual, the numbers may not represent the increase in value of a typical unit over the time period. That said, the data is clear: the broad Austin condo market continues to perform well.
Here is the raw data on Austin:
Austin-Round Rock, TX Condo Market Values
2005 Avg Value ($ ‘000): $137.6
2006 Avg Value ($ ‘000): $150.4
2007 Avg Value ($ ‘000): $172.3
2007 June Avg Value ($ ‘000): $172.1
2008 June Avg Value ($ ‘000): $175.3
1 Year % Change: 1.9%
Here are some of the key observations:
(1) Austin remains relatively inexpensive. Of the top 60 markets, Austin is the 29th most expensive condo market:
| Rank |
Market |
$ (‘000) |
|
1 |
San Francisco-Oakland-Fremont, CA |
$524 |
|
2 |
Honolulu, HI |
$330 |
|
3 |
Los Angeles-Long Beach-Santa Ana, CA |
$328 |
|
4 |
New York-Wayne-White Plains, NY-NJ |
$320 |
|
5 |
Sarasota-Bradenton-Venice, FL |
$312 |
|
29 |
Austin-Round Rock, TX |
$175 |
(2) While condos in the worst performing markets have lost 20% – 30% of their value in the last year, Austin is one of a few markets where condo values have appreciated. Of the top 60 markets, Austin is the 11th fastest appreciating condo market and one of only 19 that gained value between mid-2007 and mid-2008:
|
Rank |
Market |
$ (‘000) |
|
1 |
Syracuse, NY |
17.8% |
|
2 |
New Orleans-Metairie-Kenner, LA |
15.9% |
|
3 |
Houston-Baytown-Sugar Land, TX |
9.9% |
|
4 |
Norwich-New London, CT |
6.4% |
|
5 |
Chicago-Naperville-Joliet, IL |
5.1% |
|
11 |
Austin-Round Rock, TX |
1.9% |
|
56 |
Jacksonville, FL |
-21.6% |
|
57 |
Miami-Fort Lauderdale-Miami Beach, FL |
-25.0% |
|
58 |
Las Vegas-Paradise, NV |
-25.9% |
|
59 |
Reno-Sparks, NV |
-26.9% |
|
60 |
Sacramento–Arden-Arcade–Roseville, CA |
-34.0% |
(3) Over the last three years, Austin has been one of the best performing condo markets in the country. When we look at the Austin condo market between 2005 and the second half of 2008, it ranks 2nd of 60 markets in total appreciation:
|
Rank |
Market |
$ (‘000) |
|
1 |
Salt Lake City, UT |
27.8% |
|
2 |
Austin-Round Rock, TX |
27.4% |
|
3 |
Bismarck, ND |
25.4% |
|
4 |
Portland-Vancouver-Beaverton, OR-WA |
25.1% |
|
5 |
Honolulu, HI |
22.7% |
|
56 |
Los Angeles-Long Beach-Santa Ana, CA |
-15.6% |
|
57 |
Reno-Sparks, NV |
-16.0% |
|
58 |
Las Vegas-Paradise, NV |
-24.7% |
|
59 |
Cape Coral-Fort Myers, FL |
-27.9% |
|
60 |
Sacramento–Arden-Arcade–Roseville, CA |
-38.2% |
All-in-all, the market news is uniformly positive and confirms what many other market reports have shown: the national real estate crisis has effected volumes but not prices in the broad Austin condo market.
The full NAR report can be found here.
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