🤠🏡 Selling Austin #13

Welcome everyone! Happy Friday!

Pay attention to why your land is about to get a whole lot more valuable. 📈 

Did someone forward this to you? If you like it, sign up here!

WHAT'S INSIDE

• 🔢 THE DATA

• 🤠 WHAT’S HAPPENING AROUND TOWN

• 👀 DEAL OF THE WEEK

• ⁉️ WHAT THIS MEANS FOR YOU

• 🤤 HOUSE WORTH DROOLING OVER

🔢 THE DATA

Let’s talk March numbers y’all.

A month ago we broke down February.
TLDR: enormous jump in new listings: +44.8% YOY

March new listings have come down from February’s dramatic high but still up: +10.2%

With 4.2 months of inventory we are still in a balanced market. In the coming months, mortgage rates (which reached a 5 month high this week) and increasing inventory will be the primary drivers of market type.

🤠 WHAT’S HAPPENING AROUND TOWN

Buckle up this is important.

If we have ever worked together you’ve heard me yap about how valuable the land underneath your property is.

Your land is about to get a whole lot more valuable. Here’s why:

There is a reform which passed last year, called the HOME initiative. Once this plan has been adopted by city code, you will be able to build 3 homes on a typical single-family lot. This means a many more tall, skinny A, B (and C!) houses coming your way. This also means, single family homes will increase in value because of the land alone. The Council’s goal with this reform is to increase affordability of starter homes.

But wait, there’s more!

The Council will also look into reducing minimum lot sizes. They will vote on this proposal, dubbed HOME 2, on May 16th.

Current smallest single family lot: 5,750 sqft
Proposed smallest single family lot: 2,000 sqft

What does it mean?

Theoretically, increasing the number of homes allowed on a certain lot = more homes, and more homes should = lower prices and more access.

However - if you’ve done a Zillow browse, you know these A/B units are not cheap. Once developers are allowed to build 3 houses on a single lot, the value of land will increase. Because the land is getting more expensive, the developers might need to build more expensive houses in order to make a profit - effectively reducing accessibility.

We know theory and practice are not the same and will have to watch how this plays out.

Read more: here and here

👀 DEAL OF THE WEEK

Neighborhood spotlight: East Austin

The speed at which East Austin has changed is astounding. What was once a sleepy, often forgotten sister to dirty 6th is now the place to be. Breweries, cocktail bars, hotels, restaurants and high rise apartments are popping up left and right. In this property - you’ll be just half a mile away.

That’s why this week’s deal is all about location and future land value.  

Making sure to control for year built, lot size, square footage, quality of updates - average price per square foot (ppsqft) for the last 3 years is $510.

List Price: $775,000 ($502 ppsqt)
Kirtana’s Suggestion: $725,000 ($469 ppsqft)

⁉️ WHAT THIS 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

I mean, this house could not be more perfect with today’s conversation around land value. Half an acre in Tarrytown? Ok.

Yours for a cool $25,500,000

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

P.S. If you think your friends would like this newsletter, I’d love for you to share it with them!