Austin Real Estate Unlocked: 4 Deal Friday

Welcome everyone! A lot happening in Austin Real Estate - let’s get started. Read through for deals 👀

First, a quick look back.

2023 AUSTIN YEAR IN REVIEW 🤠
- Average sold price declined -8.07% 2022-2023
- Median sold price declined -10.21% 2022-2023

Don’t let these numbers scare you. Real estate is about perspective so let’s zoom out. 

Traditionally, real estate moves slowly - pandemic growth was an anomaly. We are course correcting from that period. The important thing is that population is the primary driver of Austin’s real estate growth and this continues to be robust.

What’s happening now?

The big picture - knowing where large amounts of capital are being deployed can help inform where you purchase.

All things Musk 🚀
- Musk University: $100M to build a primary and secondary school in Austin. Location TBD
- Current holding: 3,500-6,000 acres in Bastrop. Building “Project Amazing” with Lennar Builders

Blackstone:
- Plans 500-unit complex near Domain
- Current holding: 9 million square feet of commercial space in Austin (most of this was acquired in the past year!)

Skybox/Prologis: $550M into Pflugerville for data centers

Tallest building in Austin (66 stories!) opening late 2024 - Sixth + Guadalupe
- Twist 👀 - tower will feature a restaurant by Elon Musk’s brother Kimbal

Legislation revisited to “upzone” the Domain
- Zoning change would expand building height + increase density
- Goal: bring large scale residential developments to the area

What does all that mean for you?
While the residential market is softening from pandemic highs, there is still an incredible amount of capital investment being deployed here. This is a strong signal of Austin’s longevity and means safety for your properties long term.

Okay - time for the deals!

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

As mentioned - the market is correcting. The graph below shows that we’re nearing 2021 pricing. We will look at comps from 2021 (comparables/comps: similar properties to help determine value).

1) Location, location, location! Westlake Heights, Eanes School District (one of the best in the nation), backs to greenbelt
Listed: $1.375M
Kirtana’s Suggestion: $1.275M

2) Corner unit, 0.5mile to lady bird lake, walkable
Listed: $1M
Kirtana’s Suggestion: $945,000K

3) South Austin - rapidly developing neighborhood (tip: buying in neighborhoods in the process of developing = faster value increase than an already established community)
Listed: $1.1M
Kirtana’s Suggestion: $975,000

4) South Austin - rapidly developing neighborhood
Listed: $907,000K
Kirtana’s Suggestion: $825,000K

That was a lot of information - what does this mean for you?

Buyers:
- Slight inventory increase - this will pick up towards the spring
- Big deals + incentives from builders
- If you see something you like - low competition/high seller urgency

Sellers:
- Pricing is everything
- Underprice and drive traffic, properties get stale quickly

As always - reach out if there are any questions I can answer, I would love to help you!