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

Inside: 2026 Rate Cut? ✂️ + Texas Luxury 💵 
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(*unbiased opinion)

WHAT'S INSIDE

• 🔢 THE DATA

• 🤠 WHAT’S HAPPENING AROUND TOWN

• 🤤 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. 🐦️ 

New year, new rate cut?
Let’s get into it:

The Federal Reserve may be on pause longer than markets expect.

J.P. Morgan’s chief U.S. economist Michael Feroli expects rates to remain unchanged through 2026, with the next move more likely a hike in 2027 than a cut.

Why?

• Job growth is expected to strengthen

• Core inflation is likely to stay above 3%

What it means for you:

• Mortgage rates recently fell to ~6.16%

• Realtor.com projects ~6.3% in 2026

• Higher-for-longer rates continue to weigh on sales

TLDR: without a clear slowdown in jobs or inflation, meaningful rate cuts are unlikely.

🤠 WHAT’S HAPPENING AROUND TOWN

Texas luxury is here to stay.

After pandemic-era surges, the $1M+ market is normalizing.

The numbers:

• 2025 set a record - 14,400 home sales $1M+

• Annual growth ~12% mirrors pre-pandemic levels

What’s slowing:

• Inventory increased to 8.3 months

• Days on market increased to 72

Location will be the primary driver when looking at inventory and days on market. Austin’s hottest neighborhoods are still thriving.

🤤 HOUSE WORTH DROOLING OVER

Something new this week that someone might drool over…

If Keep Austin Weird was the goal, they succeeded.

Yours for $899,000. Thoughts on the floral mural?

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