4 Deal Friday

Author

Kirtana Reddy
December 15, 2023

Neighborhood spotlight: Zilker, Bouldin

Good deal criteria

  • Low price per square foot (ppsqft): bottom 20% for the past 365 days

  • Median days on market: 105 - sellers willing to negotiate, properties due for another round of price cuts

  1. 714 W Johanna (Bouldin)

    Price: $1.89M
    Sqft: 3,282
    ppsqft: $576, Bouldin median last year: $788
    My recommendation: $1.75M: $533 ppsqft

  2. 1109 W Oltorf (Bouldin)

    Price: $1.595M
    Sqft: 2,666
    ppsqft: $598, Bouldin median last year: $788
    My recommendation: $1.49M: $559 ppsqft


  3. 1903 Newton (Bouldin)

    Price: $1.85M
    Sqft: 2,729
    ppsqft: $678, Bouldin median last year: $788
    My recommendation: $1.5M: $549ppsqft

  4. 1905 Blue Crest (Zilker)

    Price: $1.499M
    Sqft: 2,185
    ppsqft: $686, Bouldin median last year: $868
    My recommendation: $1.399M: $640ppsqft

MARKET ANALYSIS

MORTGAGE RATES
Mortgage rates have dropped below 7% for the first time since August
A year ago - the average 30-year fixed rate was 6.31%
What the experts say and what it means for you:

  • Mortgage applications have increased for the 6th week in a row - signals strengthening buyer demand

  • Primary driver of of post-pandemic declines is high monthly payments - lower monthly payments due to rate decrease means a likely boost in pricing/buyer + seller behavior

  • Fed is not signaling future rate cuts - large Q1/Q2 cuts unlikely

“We aren’t really talking about rate cuts right now.”

John Williams - Federal Reserve President 12.15.23

Housing Supply & Seasonality
Lock-in-effect: difference between today’s higher rates and homeowners lower rates - it is a buyer’s market, current sellers need to sell
Combination of the lock-in-effect and seasonality means slower market movement
Consumer behavior is showing signs of returning to pre-pandemic normalcy

WHAT DOES THIS MEAN FOR ME?

BUYER

  • Slight inventory increase, price decrease

  • Great buyer environment to find a deal

  • Few buyers competing with you

  • If you see something you like - low competition/high seller urgency

SELLER

  • The holiday season can be difficult time with low buyer demand

  • If you do not need to sell - waiting for seasonal Q1/Q2 increases will be in your favor

  • If you need to sell - price planning is crucial

As always, real estate is hyper local - please reach out to discuss your needs. I would love to help you!

Kirtana Reddy
[email protected]
503-887-6716