🤠🏡 Selling Austin #11

Hi y’all! Happy Friday - I am stoked you’re here!

Pay attention to what the Fed is saying 💰️ and you won’t want to miss this slice of Italy in Austin 🤤 

Here from our feature in The Austin Business Review? Welcome! If you like this, sign up here!

Psst: if you haven’t checked out ABR - it’s a weekly roundup of local events/insights for Austin business owners. (Hi Ethan 👋 )

Okay. Let’s go!

Table of Contents

• 🔢 THE DATA

• 🤠 WHAT’S HAPPENING IN TOWN

• 👀 DEAL OF THE WEEK

• ⁉️ WHAT THIS INFORMATION MEANS FOR YOU

• 🤤 HOUSE WORTH DROOLING OVER

🔢 THE DATA

Listen, keeping up with the Fed is a full time job.

Let’s take a quick step back:
The Fed does not directly affect mortgage rates. They influence them by changing the interest rate that banks charge each other for loans. This impacts the rate at which banks can lend to consumers through mortgages, auto loans etc.

Great.
Here is a breakdown of the April 10th meeting:

Inflation is still being stubborn and consumer prices have risen slightly to 3.5% in March from 3.2% in February. March is the third month in a row with rising consumer prices.
(Psst: we’re trying to get back to 2% inflation)

This means, the Fed might keep interest rates as they are. Some experts say the Fed will hold off on making a cut this summer and others say there won’t be a cut at all this year - there may even be an increase.

This dramatic change in the forecast seemed unthinkable at the start of 2024 when the consensus was 6 rate cuts for the year for 1.5% points starting in March. Options traders are now betting the Fed will cut just once this year and banks are revising forecasts based on the 4/10 data.

TLDR:

• Rate cuts are not on the immediate horizon

• There may be rate increases

• Current predictions are dramatically different from just one month ago

You can read more here, here and here.

🤠 WHAT’S HAPPENING IN TOWN

Last week we talked about the Tallest Building in Texas. Today, we’ll tackle one of East Austins largest developments.

On April 4th, Kairoi Residential got approval to move forward with a 115 acre mixed-use developed between Ed Bluestein and Highway 183.

It will be home to:

• 2,200 multifamily units

• 385 hotel rooms

• 1.5 million square feet of office space

• 20,000 square feet of retail space

• 127,000 square foot shopping center

• 134,000 square feet of restaurant space

• 27,000 square foot theater

• 8,500 square foot music venue

• 37,000 square foot civic center

This development will bolster East Austin’s transformation and aims to quench the demand for residential, commercial and mixed-use spaces.

🔍️ Psst: Looking for investment properties? The value of the land around this development will skyrocket as it gets closer to completion.

👀 DEAL OF THE WEEK

Neighborhood Spotlight: Zilker

Zilker is the ultimate mix of urban/suburban. You’re shielded from the noisiness of the city but have easy access to bars, restaurants and parks.

Price per square foot is high - median ppsqft for Zilker over the past 5 years is $633.93ppsqft.

Take a look at this house:

Listed at: $1,499,000
Kirtana’s Suggestion: $1,400,000 - I would want to get this at sub $600ppsqft. $1.4M puts us at $580ppsqft.

⁉️ WHAT THIS INFORMATION MEANS FOR YOU

If you’re a buyer/seller/investor/renter or just interested in real estate - this weekly newsletter will help guide your decision making and help you better understand the market.

🤤 HOUSE WORTH DROOLING OVER

Did someone say, Lake Como, Austin (??) 

Say Hello to a slice of Italy in Austin. All this in Eanes school district? Furniture included? Yours for $11,999,000.

Thank you for being here! Reply to this email if you have any questions or just to say hello! 👋 

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