Hi y’all, welcome!

Pay attention to the HEB effect 🛒 + a gothic inspired mansion with a human figurine chandelier perfect for Halloween 🎃

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(*unbiased opinion)

WHAT'S INSIDE

• 🔢 THE DATA

• 🤠 WHAT’S HAPPENING AROUND TOWN

• ⁉️ WHAT THIS MEANS FOR YOU

• 🤤 HOUSE WORTH DROOLING OVER

🔢 THE DATA

Pending home sales are up - the steepest gain in 3 years.

Are we back?

Well, one metric says yes. Pending units have reported an 8.9% increase in a 4 week period ending October 6th.
🧃 refresher: a pending unit is under contract but has not yet closed

Why now?

This activity is likely a response to the news of the Fed’s rate cut.

Let’s zoom out:

Last week we talked about how rates went up after the initial announcement decrease

We know pending units will decrease because -
1) Normal seasonal decline as we head into the election season and winter
2) Interest rates crept back up

TLDR:

Anyone can make the market look good/bad depending on the metric and time horizon they choose. Make sure you’re looking at the full picture.

Read more: here and here.

🤠 WHAT’S HAPPENING AROUND TOWN

If you’re looking to buy or invest - welcome to your unfair advantage. Know what’s happening before everyone else.

Up today — the HEB effect:

When I moved to Texas I did not understand the level of cult fame held by HEB. In 2022, shoppers woke up early and waited in a line that wrapped around a new HEB store in Frisco before its 6AM opening…

In the past couple of years, we have seen the true magnitude of HEBs reach.

The arrival of HEB inevitably leads to a real estate boom. Some real estate investors’ entire investment thesis centers around HEB and their development. HEB anchors massive shopping centers in a way other stores are simply unable to.

An HEB store opening in Plano caused the surrounding commercial properties to rocket from 80% to 95%+ occupancy to, while increasing rental rates. It’s not just commercial property that benefits - residential communities spawn around HEB.

Now we’re on the same page - HEB is great and residential/commercial booms around new openings. Next?

HEB has targeted a growing northeast Austin suburb for its next store.

Just last week, HEB broke ground on their newest development in Manor. This could be one of the best new investment opportunity areas in Austin.
Census data shows Manor had 48% population growth between 2020 and 2023.

🔎 Psst: Looking for investment properties? Get in early on the HEB effect around Manor.

Read more: here and here

⁉️ 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

Sometime you see a house with broad appeal. Other times…you see a chandelier of human figurines. Just in time for Halloween 🎃 

You have to see this gothic inspired home. 8,600 sqft and 1.5+ acres.
Yours for $14,500,000.

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