Hi y’all, happy new year! I’m thrilled to have you here.

Inside: Is Austin stuck? ❌ + Vodka Takes Over Bastrop 🍸️ 

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(*unbiased opinion)

WHAT'S INSIDE

• 🚨 FROM YOUR REALTOR

• 🤠 WHAT’S HAPPENING AROUND TOWN

• 🤤 HOUSE WORTH DROOLING OVER

• 🎯 KEY TAKEAWAYS

🚨 FROM YOUR REALTOR

I’m an ex-dentist turned Realtor - let’s work together! Email me, tweet me or send me a carrier pigeon. 🐦️ 

Is Austin Stuck?

You might have heard the buzz that “Austin’s stuck.” These headlines are based on a recent Redfin article - let’s get into it.

Based on a nationwide report, Redfin found the top cities with listings on the market for 60+ days are as follows:

Active listings, or the total number of homes for sale, is also at the highest level since November 2020. Considering the news of the housing shortage, you might be surprised to be homes sitting idly on the market.

Looking at all active listings in the Austin metro area, we have ~5months of inventory. This means if there are zero new properties hitting the market, we would move through all homes in 5 months. The more months of inventory = the more options buyers have the stronger the buyers market. The less inventory = sellers market. While we are still technically in a balanced market, considering inventory is up from the last 4 years - practically, the market behaves more like a true buyers market.

Let’s break this down a bit further to understand why properties are sitting on the market for so long:

We will group buyers into 2 categories - existing homeowners looking for a new home and first time homebuyers.

Existing home buyers interested in new properties have a “lock-in effect” (they don’t want to sell or buy because they can’t beat their current rates). They also usually have to sell their current home at their great rate and know the market isn’t in their favor.

New buyers - given Austin’s ever expanding skyline, the rental market is very appealing. High rises are offering 6-8 week concessions on a 1 year lease and make it difficult for renters to move into the buyer market. Single family home rentals have also decreased year over year due to more competition

There’s another reason Texas and Florida are the top 5 - they’re the two states that are building way more than anywhere else in the US. It’s natural properties will be sitting longer here than in states with little/no development.

What this means for you:

Buyers - don’t be afraid to lowball. Sellers are considering offers well below list price, especially for properties that are sitting.

Sellers - price to sell now. You do not want to cut price. “Let’s see how this does and we can drop the price if it doesn’t move” is a terrible strategy to start with. Once the first price cut happens, people will expect more and will sit on the sidelines.

I’ve seen some well priced homes move quickly, an even receive multiple offers in this market.

If you have any questions or want to chat about your property, reply here.

🤠 WHAT’S HAPPENING AROUND TOWN

You might not think more Musk in Texas is possible but here we are.

Elon Musk adds two retail leases to the Hyperloop Plaza in Bastrop. A cafe and Total Primary Care are opening shop.

Hyperloop Plaza shows Musk’s approach to creating a robust city in Bastrop. Many Musk employees live in Snailbrook - a nearby community of modular homes. A partnership with national builder Lennar called “Project Amazing” with 100+ homes is planned (dates TBD).

While we’re talking Bastrop - turns out Texas billionaire Tito Beveridge of Tito’s Vodka has accumulated 13,000 acres in Bastrop in the past few years. Sidenote: amazing name and I think his family had no choice but to go into the drinks business.

What is most interesting - aside from his name - is that there are no details about the plan for the land. In a small region - the size of the purchases are significant and are valued at $156M.

🤤 HOUSE WORTH DROOLING OVER

🚨 OPEN HOUSE ALERT🚨

You can actually visit me at this drool worthy house - I’m hosting an open house here this Sunday (1/5) from 12PM-2PM. Stop by!

South Lamar stunner - new build with huge yard you rarely see in Austin. Listed at: $1,250,000.

Interested in something smaller?
3209 Dolphin Dr #2
Listed at: $875,000.

🎯 KEY TAKEAWAYS  

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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