Austin Real Estate #3

What's Inside 👀

• THE NUMBERS

• WHAT’S HAPPENING AROUND TOWN

• DEALS

• WHAT DOES THIS MEAN FOR YOU

THE NUMBERS 🔢 

• Builders moving back to rate buydowns: a rate buydown is when the builder pays to reduce your interest rates.

  • You typically see this: 2-1 buydown: this means builders reduce the rate by 2% the first year, 1% the second year and year 3 back to original rates (the goal is to refinance here)

• Avg Sold Price declined -6.8% in the City YOY.

• Total Sales (estimated) increased +3.9% in the City. - due to increased activity

• Avg Days to sell a property is now 75 in the City.

WHAT’S HAPPENING AROUND TOWN 🤠 

The Fed
- Average contract rates have increased to 6.87% from 6.80% last week
- Highest rate since early Dec 2023
- Rate cuts unlikely until later in the year

Rents
- Apartment supply has overtaken demand
- Landlords cutting rents
- Austin has second largest rental decline YOY in the U.S.
- Austin delivered a similar number of rental units to Houston (Houston is ~2.5x larger than Austin)
TIP: NEGOTIATE YOUR LEASE TERMS - ESPECIALLY IF YOU’RE IN A LARGE APARTMENT COMPLEX

Highland Lanes to Close
- Almost 50 years later this Austin bowling alley will be closing
- A 300-unit multifamily development will take its place

DEALS 💰️ 

What is a good deal? 
Deals are evaluated based on neighborhood trends, historical data, price per square foot (ppsqft) & home quality/updates

Here’s what else we’re evaluating this week: Time on market + price cuts

TIP: If they’re aggressive and frequent with cuts - they’re open for negotiation (especially builders - they are more able to negotiate than someone selling their personal home).

1. Wilson St 
Days on Market (DOM): 147
Starting Price: $1.395M
Current Price: $1.199M (reduced by: $196K)
Kirtana’s Suggestion: $1M

2. Glendale Pl
DOM: 128
Starting Price: $1.15M
Current Price: $1.099 (reduced by: $51K)
Kirtana’s Suggestion: $950K

WHAT DOES THIS MEAN FOR YOU ⁉️ 

Thank you so much for being here! As always - reach out if there are any questions I can answer, I would love to help you!