Austin 2007 Real Estate Appreciation by MLS Area

Below are the 2007 Austin real estate appreciation breakdowns by MLS area. Despite the negative media attention given to the real estate market nationally, Austin continues to see notable value appreciation in many areas. Overall, average sales prices in Austin were up 6.62% to $254,883 (excludes condos) and average sold price per square foot were up 4% in 2007 to $118.

I can’t pull the median sold value on the overall market due to a search result limitation with our
new MLS software, but I can pull medians on the individual areas, and those are noted in the chart below.

As you look at the table below, you’ll see several metrics that I track when looking at market performance in a particular area. The most common we here about in the news is number of sales. I want to comment on that briefly.

All year the headlines have said “sales down in Austin”. This isn’t news. We knew it would happen. It’s no surprise. It peeves me that journalists get hung up on the drop in number of sale without placing it into context.

Do you remember any of the headlines saying “Austin enjoys second highest number of sales ever”? Well, that’s what we saw in 2007. So even though the volume of sales is down from the record year of 2006, don’t get hung up on that number. Austin is doing very well in the number of sales category, even though our number of sales were down 7% from 2006.

Next we look at average and median sales prices, sold price per square foot, and number of days on market. Just because average sales prices have gone up in a particular area, that doesn’t mean the average home will sell for that much more. The introduction of bigger, more expensive new homes to an area, or a higher number of high priced sales in a given year, can create that impression. This is why we also look at median sold values and sold price per square foot.

If all three of the avg, median and psf values are up, that indicates solid performance across the board in that area. Finally, Days on Market provides an indication of how fast homes are selling an an area.

Let’s look at a couple of examples, starting with Austin MLS Area 1B, which is Central Austin. Notice that in 1B, all three price metrics are up more than 12%, and the homes sold 12% faster than they did in 2006. This is a very strong selling area.

Other very strong areas where average price, median price and avg per sqft price were all at or above 10% were MLS areas (1B) 2, 3, 7, 8E, 9, 10N, 10S, HD, SWE. Notice (see MLS map at bottom of chart below) that ALL of these areas are close-in areas less than 20 minutes to downtown Austin. We’ve always advised our investors to buy close in, but far enough out so that the lot values don’t skew your rent ratio too much. Area 10N, 10S, SWE and SWW are the areas we generally recommend for purchasing long term hold properties.

Now, which areas did poorly? It’s no surprise to me that the areas that did most poorly with regard to appreciation are the areas where most newbie investors buy their first investment property. Why do they buy in these areas? Because the houses are cheap. There is no other reason. You get what you pay for.

MLS Area 5E (Far East Austin) saw average sales prices drop 3%, median values up 3%, average price per sqft drop 1.72% and Days on Market increase 19%. If you bought an investment property in one of those starter home neighborhoods for $110K a year or two ago, it’s still worth $110K today and will take longer to see than it would have a year or two ago.

Other areas that underperformed compared to the regional stats (less than 5% appreciation for avg, median and psf) are GTW, HH, HU, MA, and SC . Note that these areas are all more than a 30 minute drive from downtown Austin.

On to the stats. An Austin MLS Map is at the bottom of this page in case you’re not familiar with the area. As always, comments, questions and observations are welcome.

MLS Area Year # Sold Avg Sold Med Sold Avg SQFT Avg PSF Avg Days Year Blt
All Areas
2007
24453
$254,883
not
2,166
$117.67
57
not
2006
26346
$239,056
avail
2,112
$113.19
58
avail
Change
-7.19%
6.62%
-
2.56%
3.96%
-1.72%
-
MLS Area
YTD
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
1A
2007
262
$495,054
$451,500
2,698
$183.49
49
0
2006
294
$457,872
$408,250
2,729
$167.78
52
0
Change
-10.88%
8.12%
10.59%
-1.14%
9.36%
-6%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
1B
2007
355
$720,783
$610,000
2,524
$285.57
57
0
2006
411
$643,484
$542,500
2,555
$251.85
65
0
Change
-13.63%
12.01%
12.44%
-1.21%
13.39%
-12%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
1N
2007
566
$301,708
$271,000
2,191
$137.70
33
0
2006
666
$281,941
$246,125
2,202
$128.04
36
0
Change
-15.02%
7.01%
10.11%
-0.50%
7.55%
-8%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
2
2007
397
$256,597
$245,900
1,401
$183.15
31
0
2006
514
$222,073
$217,125
1,383
$160.57
33
0
Change
-22.76%
15.55%
13.25%
1.30%
14.06%
-6.06%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
2N
2007
308
$148,706
$142,000
1,541
$96.50
34
0
2006
408
$136,868
$129,200
1,502
$91.12
40
0
Change
-24.51%
8.65%
9.91%
2.60%
5.90%
-15.00%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
3
2007
339
$201,428
$195,000
1,446
$139.30
41
0
2006
395
$172,217
$155,500
1,470
$117.15
34
0
Change
-14.18%
16.96%
25.40%
-1.63%
18.90%
20.59%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
3E
2007
210
$123,388
$117,578
1,437
$85.86
69
0
2006
136
$107,702
$105,000
1,345
$80.08
62
0
Change
54.41%
14.56%
11.98%
6.84%
7.23%
11.29%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
4
2007
355
$341,939
$310,000
1,478
$231.35
45
0
2006
414
$303,598
$280,000
1,427
$212.75
43
0
Change
-14.25%
12.63%
10.71%
3.57%
8.74%
4.65%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
5
2007
370
$176,455
$157,500
1,178
$149.79
51
0
2006
425
$152,600
$137,000
1,169
$130.54
52
0
Change
-12.94%
15.63%
14.96%
0.77%
14.75%
-1.92%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
5E
2007
91
$108,180
$109,900
1,508
$71.74
51
0
2006
112
$111,534
$106,750
1,528
$72.99
43
0
Change
-18.75%
-3.01%
2.95%
-1.31%
-1.72%
18.60%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
6
2007
267
$349,941
$325,000
1,483
$235.97
45
0
2006
312
$332,538
$295,500
1,554
$213.99
57
0
Change
-14.42%
5.23%
9.98%
-4.57%
10.27%
-21.05%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
7
2007
134
$397,185
$376,000
1,676
$236.98
46
0
2006
122
$357,632
$336,500
1,693
$211.24
41
0
Change
9.84%
11.06%
11.74%
-1.00%
12.19%
12.20%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
8E
2007
256
$906,926
$721,500
3,542
$256.05
59
0
2006
286
$785,106
$609,550
3,461
$226.84
79
0
Change
-10.49%
15.52%
18.37%
2.34%
12.87%
-25.32%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
8W
2007
291
$701,551
$533,850
3,478
$201.71
65
0
2006
320
$684,676
$495,000
3,370
$203.17
64
0
Change
-9.06%
2.46%
7.85%
3.20%
-0.72%
1.56%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
9
2007
91
$169,231
$157,574
1,526
$110.90
35
0
2006
80
$140,595
$136,250
1,491
$94.30
45
0
Change
13.75%
20.37%
15.65%
2.35%
17.61%
-22.22%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
10N
2007
319
$185,539
$164,100
1,446
$128.31
24
0
2006
315
$149,428
$140,000
1,401
$106.66
26
0
Change
1.27%
24.17%
17.21%
3.21%
20.30%
-7.69%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
10S
2007
796
$174,346
$167,500
1,633
$106.76
26
0
2006
951
$156,791
$150,000
1,624
$96.55
29
0
Change
-16.30%
11.20%
11.67%
0.55%
10.58%
-10.34%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
11
2007
312
$118,193
$115,500
1,401
$84.36
45
0
2006
323
$104,703
$100,500
1,308
$80.05
47
0
Change
-3.41%
12.88%
14.93%
7.11%
5.39%
-4.26%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
CLN
2007
1282
$168,753
$150,000
1,964
$85.92
50
0
2006
1483
$159,305
$140,011
1,979
$80.50
53
0
Change
-13.55%
5.93%
7.13%
-0.76%
6.74%
-5.66%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
CLS
2007
1158
$235,748
$210,500
2,362
$99.81
55
0
2006
1188
$211,959
$185,000
2,296
$92.32
61
0
Change
-2.53%
11.22%
13.78%
2.87%
8.12%
-9.84%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
EL
2007
293
$137,117
$125,000
1,808
$75.84
72
0
2006
246
$129,120
$115,750
1,821
$70.91
75
0
Change
19.11%
6.19%
7.99%
-0.71%
6.96%
-4.00%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
GTE
2007
357
$158,671
$138,730
1,767
$89.80
54
0
2006
406
$144,664
$132,250
1,727
$83.77
59
0
Change
-12.07%
9.68%
4.90%
2.32%
7.20%
-8.47%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
GTW
2007
849
$256,330
$219,000
2,272
$112.82
73
0
2006
862
$245,580
$219,000
2,288
$107.33
77
0
Change
-1.51%
4.38%
0.00%
-0.70%
5.11%
-5.19%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
HD
2007
402
$402,570
$347,461
2,896
$139.01
90
0
2006
460
$347,712
$315,000
2,754
$126.26
86
0
Change
-12.61%
15.78%
10.31%
5.16%
10.10%
4.65%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
HH
2007
1159
$171,765
$152,676
2,005
$85.67
63
0
2006
1042
$168,102
$146,556
2,022
$83.14
66
0
Change
11.23%
2.18%
4.18%
-0.84%
3.05%
-4.55%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
HU
2007
661
$148,212
$139,774
1,901
$77.97
64
0
2006
584
$146,932
$135,995
1,892
$77.66
63
0
Change
13.18%
0.87%
2.78%
0.48%
0.39%
1.59%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
LN
2007
262
$313,534
$206,500
2,178
$143.96
96
0
2006
328
$257,532
$192,700
2,102
$122.52
93
0
Change
-20.12%
21.75%
7.16%
3.62%
17.50%
3.23%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
LS
2007
843
$484,996
$370,000
2,781
$174.40
85
0
2006
1027
$447,612
$345,000
2,812
$159.18
85
0
Change
-17.92%
8.35%
7.25%
-1.10%
9.56%
0.00%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
MA
2007
319
$153,948
$133,000
1,920
$80.18
74
0
2006
273
$155,803
$129,947
1,891
$82.39
81
0
Change
16.85%
-1.19%
2.35%
1.53%
-2.68%
-8.64%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
N
2007
503
$186,346
$180,000
1,889
$98.65
29
0
2006
524
$175,039
$170,700
1,895
$92.37
39
0
Change
-4.01%
6.46%
5.45%
-0.32%
6.80%
-25.64%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
NE
2007
371
$152,954
$155,000
1,776
$86.12
54
0
2006
431
$144,028
$142,700
1,753
$82.16
58
0
Change
-13.92%
6.20%
8.62%
1.31%
4.82%
-6.90%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
NW
2007
706
$247,220
$203,000
2,285
$108.19
32
0
2006
896
$231,889
$192,000
2,297
$100.95
41
0
Change
-21.21%
6.61%
5.73%
-0.52%
7.17%
-21.95%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
PF
2007
1536
$166,283
$156,500
2,066
$80.49
59
0
2006
1611
$156,042
$148,500
2,006
$77.79
61
0
Change
-4.66%
6.56%
5.39%
2.99%
3.47%
-3.28%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
RN
2007
559
$542,328
$449,390
3,414
$158.85
80
0
2006
576
$503,180
$427,000
3,354
$150.02
75
0
Change
-2.95%
7.78%
5.24%
1.79%
5.89%
6.67%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
RRE
2007
1580
$184,196
$156,500
2,140
$86.07
59
0
2006
1631
$178,084
$148,000
2,151
$82.79
59
0
Change
-3.13%
3.43%
5.74%
-0.51%
3.96%
0.00%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
RRW
2007
1438
$240,842
$223,995
2,529
$95.23
56
0
2006
1568
$221,420
$200,000
2,474
$89.50
57
0
Change
-8.29%
8.77%
12.00%
2.22%
6.41%
-1.75%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
SC
2007
204
$197,527
$166,158
2,203
$89.66
59
0
2006
185
$196,939
$169,985
2,184
$90.17
65
0
Change
10.27%
0.30%
-2.25%
0.87%
-0.57%
-9.23%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
SE
2007
194
$122,628
$119,543
1,741
$70.44
42
0
2006
177
$114,378
$111,000
1,690
$67.68
44
0
Change
9.60%
7.21%
7.70%
3.02%
4.07%
-4.55%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
SWE
2007
671
$232,136
$218,000
2,165
$107.22
45
0
2006
681
$207,599
$195,500
2,128
$97.56
39
0
Change
-1.47%
11.82%
11.51%
1.74%
9.91%
15.38%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
SWW
2007
731
$303,486
$284
2,519
$120.48
39
0
2006
796
$279,175
$260,000
2,527
$110.48
36
0
Change
-8.17%
8.71%
-99.89%
-0.32%
9.05%
8.33%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
UT
2007
43
$458,382
$419,000
1,906
$240.49
75
0
2006
67
$416,592
$375,000
1,754
$237.51
40
0
Change
-35.82%
10.03%
11.73%
8.67%
1.26%
87.50%
0
MLS Area
Year
# Sold
Avg Sold
Med Sold
Avg SQFT
Avg PSF
Avg Days
Year Blt
W
2007
303
$527,025
$353,000
3,051
$172.74
61
0
2006
355
$510,349
$329,500
3,068
$166.35
72
0
Change
-14.65%
3.27%
7.13%
-0.55%
3.84%
-15.28%
0

Download a pdf version of this report here:

Austin MLS Map below.
Austin MLS Map

Posted by Steve
8 years ago
Steve

Steve is a Real Estate Blogger, Husband and Dad, UT Austin Grad, Runner, Real Estate Broker and owner of Crossland Team and Crossland Real Estate in Austin TX.

Click Here to Leave a Comment Below

Dee Copeland - 8 years ago

The problem with using stats by MLS area in East Austin is that MLS Area 3 and 5 zip codes are very different. For instance, 78723 and 78722 are in the same MLS area 3, but 78722 average sales prices are way above 78723. 78722 is very popular French Place and close to the University of Texas. The homes are classic with larger yards and lots alone sell for 200k for a double-sized. Homes are moving much slower in 78723, which is all the way from 51st street to 183. Depending on how close you are to Mueller, 78723 needs to be priced under $175k to sell as fast.

MLS AREA 5: there’s a huge difference here. Zip code 78702 has a lot of new condos, so if you look at prices of single family homes, they often won’t break 200k unless they’re closer to the river or larger. 78721 is even slower. That’s a bad area that was growing, but has now hit the skids since no one wants to pay over $150k to live there. I’d say homes need to be priced under $135k in 78721 to sell quickly.

Basically, I think 78721 and 78702 in MLS Area 5 need to be separated. I also think 78723 and 78722 in Area 3 need to be separated. They’re totally different markets. I’m in a class this week, but plan on running East Austin stats by zip to see what the differences are.

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Steve - 8 years ago

Hi Dee,

You’re very right about the Austin MLS Areas being mixed. One section of an mls area can make that entire area look better or worse than the true average. That’s why I note above that just because an area has a certain appreciation area-wide, that doesn’t mean the average house would sell for that much more.

I’ve pondered what to do about that when running stats. I’ve thought about doing it by zipcode, but the same problem exists. I’ve thought about breaking out by school boundaries, subdivisions, etc, but always there is an issue such as you mention. In the end, I decided it is what it is and it’s up to individual agents and buyers/sellers to drill down to the next level when determining what a good offer/sales price should be, or if an area is worthy of further investigation for investment.

Thanks for your comments and insight!
Steve

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Jessica Honegger - 8 years ago

I specialize in area 3, 78723. I also live here. You are hard pressed to find any move in ready home for 175K here any more. That number is way off. 230K is a great sale price for the area right now.

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Dave - 8 years ago

Hi Steve,

Great information! We recently purchased a waterfront in Lakeway and were wondering if you have ever been able to come up with a meaningful price appreciation number for homes on the water? Price per square foot doesnt seem to work…

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Steve - 8 years ago

Hi Jessica: – to what $175 in area 3 are you referring? The numbers are simply the results produced by the actual sales in the MLS areas. They are accurate, though as Dee pointed out above, there are other factos to consider.

Hi Dave: I don’t know the appreciation rate on waterfront homes in Austin. There is such a variety of homes and different instances of “waterfront” listed in MLS that it would be hard to arrive at a conclusive number. A market analysis on your particular property would be the best way to determine value.

Steve

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scott - 8 years ago

I think stats are as much a work of art than any objective clarification of value. We usually have a vision/point that precedes our stat-gleaning, and proceed to put stats together that prove our mental map/subjectivities. I think the same
is true per news reporting. We look for sources that would seem to corroborate our biases, and piece together what
seems to clarify our points. Conservative and liberal political reporting do the same. Think Micheal Moore and Ann Coulter.

Some of us are more objective than others, and, like cardinal rules of news reporting, objectivity is prized and sometimes
approached in some quarters, but we always retain SOME bias. Stat gathering falls into this same scenario. Look at
economic forecasting. Lets go further. Look at the current paradigm that the housing market is busted. In that case, we look for data that confirm this, and discount accordingly contrary data. Eventually, we wag the dog and prove our prejudices, and possibly drag down markets that were reasonably healthy in the first place. This seems to be happening
with some of the interpretations of current Austin real estate stats. Hard to say what the tea leaves read, but methinks
they are not as moldy and ominous as some would think.

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Dee Copeland - 8 years ago

I posted some news you may be interested in. About the luxury condos coming in at Riverside Drive. http://tinyurl.com/2xt2qx

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