Hi y’all, welcome back to Selling Austin - your weekly local real estate recap.

Inside: Construction Slowdown 🔨  + Elon Town 🌳 

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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

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

Construction slow down - whats going on?

If it feels like there’s less construction happening in your neighborhood lately, you’re 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.

What’s 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

• it’s getting more expensive and more difficult to build homes.

  • Tariffs are driving up material costs + labor shortages

What’s 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 you’re looking to buy/sell/stay informed, it’s something to watch closely.

🤠 WHAT’S HAPPENING AROUND TOWN

I’m surprised we’ve gone this long without mentioning Elon but we’re back.

Tesla has released plans of its ‘ecological paradise’ at Giga, Texas. I didn’t 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.🌳 

⁉️ 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

This property is being called the crown jewel of historic Austin homes. It’s unlike the cookie cutter ultra luxury homes we’re used to seeing - what do you think?

Yours for: $8,900,000

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