Austin 2007 Real Estate Appreciation by MLS Area

7 thoughts on “Austin 2007 Real Estate Appreciation by MLS Area”

1. 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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2. 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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3. 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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4. 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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5. 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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6. 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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7. 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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