🤠🏡 Selling Austin #24

Hi everyone, happy Friday!

Pay special attention to a house that sold for a 54% profit in just over 1 year🤑 and Twitter coming to town🤠

Here from our feature in Austin Business Review? Welcome 👋 you can sign up here!

Find last week’s edition here!

WHAT'S INSIDE

• 🔢 THE DATA

• 🤠 WHAT’S HAPPENING IN TOWN

• ⁉️ WHAT THIS MEANS FOR YOU

• 🤤 HOUSE WORTH DROOLING OVER

🔢 THE DATA

We know that the Austin luxury real estate market went crazy during the pandemic.

But just how crazy?

The number of luxury home sales ($2M+) in the first half of 2022 was almost double all of 2018.

Show me an example.

Ok. Here's story of a Barton Hills gem:

• House sells in 2019 for $950,000.

• New owners pour some $$$ to complete a full renovation. They sell in 2020 after 6 months on the market for $1,425,000.

• The newest owners make no changes to the house and list it for sale just over a year later. It sells after only 4 days on the market for $2,200,000in February 2022.

That's +$775,000. A 54% return, in just over a year.🤯

I know you want to see this house.
You can see pre + post renovation photos here.

That was 2022, what about now?

Surprisingly, the luxury real estate market in Austin has not cooled as much as you might expect. Most recent data from July 2024 highlights this: 

In the second week of July, over $33.5M+ of luxury sales ($2M+) were closed. 

Well. What does this mean for me?

This example demonstrates the importance of land + location.

Prices have fallen, but certain neighborhoods remain resilient. There is a finite amount of space near downtown and prices don’t show signs of pre-pandemic level corrections. As we continue to pass regulation to increase density, the rarity + value of land continues to increase. 📈

We've seen a ton of those A/B and A/B/C units pop up in Zilker, Bouldin, Travis Heights, Galindo, Riverside, and more. In these neighborhoods, single family homes on a large lot will become more rare. When they come up for sale, expect it to go for $$$.

Say it with me now: the value is in the land.

🤠 WHAT’S HAPPENING IN TOWN

Hard to believe it’s just last week we talked about Neuralink moving in next door.

Now, there is a new kid in town. X is moving to Austin.

X, formerly called Twitter, is looking to sublease its 800,000 sqft HQ in SF. They’ve begun the search for 500,000 sqft in Austin.

Austin’s expanding skyline has come with record breaking office vacancies - 25%.

Big tech firms like Meta, Google and TikTok led Austin’s initial office boom. But - return-to-office continues to face pushback and these firms can’t sustain our supply.

X’s move has made commercial owners cautiously optimistic and signals continued faith in the Austin market.

How this plays out is to be seen - will keep y’all updated. 👀

⁉️ 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

Is this Austin’s version of Eloise at the Plaza? Wade at the W? We’ll keep workshopping…

Your hotel oasis - only $6,795,000

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