🤠🏡 Selling Austin #22

Hi everyone, happy Friday!

Hope you survived last night’s debate coverage 🫠 
With the debate in mind - let’s dive into how elections affect real estate.

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Psst - more info about this Deal below.

WHAT'S INSIDE

• 🔢 THE DATA

• 👀 DEAL OF THE WEEK

• ⁉️ WHAT THIS MEANS FOR YOU

🔢 THE DATA

A few people have been asking me if I think the election will affect housing prices.

It’s a fair question - let’s get into it:

Historically, Presidential elections have only had a small, temporary impact on the housing market. There is typically a slight decrease in home sales in November and a bounce back in December.

This is a helpful graphic - home prices went up after 7 of the last 8 presidential elections. This increase has more to do with existing housing trends than the election itself. Prices that increased post-election were already trending up and prices that decreased in 2009 were already trending down.

What about rate cuts? 
A rate cut is predicted around Election Day. This will have a larger impact on housing trends than the temporary dip we see during the Election.

While the Fed goes out of its way to stay out of politics. But action or inaction during election season places them firmly in the debate.

Pre-election, they risk accusations of playing into President Biden’s hope for low inflation and low unemployment to be the core of his campaign. Pre-election they also risk Former President Trump’s argument that they are only cutting rates to help President Biden’s bid. Waiting until post-election risks the Fed looking like they make decisions based on political timing rather than the data.

TLDR:

• Elections historically do not impact housing prices

• Rate cuts in the fall will have a greater impact on prices than the Election

👀 DEAL OF THE WEEK

Last week’s deal is so good - we’re running in back:

One of the best indicators of home resale is school district.

Parents will pay a premium for their children to be in the best school districts.

The Eanes School District is the #1-rated district in Austin and ranked top 10 nationally.

This is a huge deal and competition is fierce. Eanes serves West Lake, Rollingwood and Northwest Austin. These are already expensive neighborhoods. The entry price point for Rollingwood is $2M+.

Here are some interesting figures:
The median home for sale in Eanes today: $2,890,000 (price per square foot: $671)
The median sold price in Eanes in the last 365 days: $1,625,000 (ppsqft: $575)

Snagging a property below these rates is an incredible investment. Prices continue to increase here as the city grows. Parents purchase homes here before their children head to elementary school to guarantee themselves one of 8,000 coveted slots in Eanes.

With all that background - here is our Deal of the Week:

Sale Price: $899,000
Kirtana’s Suggestion: $850,000
Ppsqft: $279 🚨 🚨 🚨 

Remember: you don’t want to be the most expensive home in the neighborhood. Let the high prices of those around you pull your home price up. Small improvements will yield large returns.

Psst: It’s also on 0.65 acres. Check on this post on why land value is going up in Austin.

If you would like to tour this property, let me know by replying to this email!

⁉️ 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.

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

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