Lots over $1m in Austin are in good supply right now, which is great news for land buyers. Here are a few statistics I pulled from the Austin MLS for lots that were listed for sale since the start of 2010:
Under contract: 2 lots
For sale: 38 lots
Sold lots: 14 (within 23 months of listing)
Failed to sell: 43 lots (ones that have been taken off the market)
If we look at lots on the market since 2005 we see that the average time on market is 6 months.
So what does this mean for a seller of a valuable lot? If you look at the lots that are currently selling, one is a foreclosed multi-family lot, and another is a huge lot just South of Downtown. There are a fair number of choices currently available for large estate home building, so it’s a tough market, with perhaps 5+ years of inventory.
If you look at sold listings, the bulk take 4+ months to sell. The sales prices have reflected seller optimism and perhaps some market fatigue.
This analysis doesn’t take into account all of the tear-down homes that an agent hasn’t listed as a lot in the MLS, though at this price point, one would hope that the listing agent would have the presence of mind to do that.