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- š¤ š” Selling Austin #71
š¤ š” Selling Austin #71
Construction Slowdown šØ + Elon Town š³
Hi yāall, welcome back to Selling Austin - your weekly local real estate recap.
Inside: Construction Slowdown šØ + Elon Town š³
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(*unbiased opinion)
WHAT'S INSIDE
š¢ THE DATA

š Hi, Iām Kirtana!
Iām an ex-dentist turned Realtor - letās work together! Email me, tweet me or send me a carrier pigeon. š¦ļø
Construction slow down - whats going on?
If it feels like thereās less construction happening in your neighborhood lately, youāre not imagining it.
According to new government data, housing starts (the number of new residential construction projects kicking off) dropped by 9.8% in May compared to April, and they're down 4.6% from the same time last year. That puts us at an annualized rate of 1.26 million new homes, a number that came in well below what experts were expecting per Bloomberg.
Whatās causing the slowdown?
A few things:
mortgage rates are still high.
the average 30-year rate hovers around 6.84%
inventory is up
there are more homes sitting on the market - demand for new builds is starting to cool
itās getting more expensive and more difficult to build homes.
Tariffs are driving up material costs + labor shortages
Whatās up next?
A forward looking indicator - building permit application - also fell. They dropped to an annualized rate of 1.39 million, the lowest level in five years. Permits for single-family homes just hit their slowest pace in over two years.
All signs are pointing to a softer construction market ahead. Whether youāre looking to buy/sell/stay informed, itās something to watch closely.
š¤ WHATāS HAPPENING AROUND TOWN
Iām surprised weāve gone this long without mentioning Elon but weāre back.
Tesla has released plans of its āecological paradiseā at Giga, Texas. I didnāt know what that meant so here are the details -
25 miles of walking trails
18 miles of bike trails
A waterfront and Tesla expo/sports complex with soccer, baseball, basketball and tennis
Riverfront boardwalk
Fishing
Playground
Orchard
290 acres of waterfront green space
8 wildlife corridors
This will completely transform the existing space and make Giga, Texas a destination. If they live up to their plans, it will be incredible once it comes to life.š³
āļø WHAT THIS MEANS FOR YOU
If youāre 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.
Buyer - You will see increased inventory in the coming months - Do not expect exceptional properties to sit on the market - we are seeing quick movement on prime homes | Seller - Avoid common listing pitfalls: inaccurate pricing will lose you both time and money. If you renovate - be specific and intentional. Not every upgrade has the desired ROI. | Renter - Seeing big complexes offer 6-8 weeks free |
𤤠HOUSE WORTH DROOLING OVER
This property is being called the crown jewel of historic Austin homes. Itās unlike the cookie cutter ultra luxury homes weāre used to seeing - what do you think?
Yours for: $8,900,000
Thank you for being here! Reply to this email if you have any questions or just to say hello! š
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