Happy Thursday,

I hope you're enjoying the last bit of rainy weather for a while as we gear up for Memorial Day!

Austin's real estate market is pulsing with activity. Major changes are on the horizon with the HOME initiative and significant urban developments responding to the influx of tech talent. This week, we delve into April's sales data and insights on middle-class living costs in Austin in 2024. We're also exploring unique investment opportunities from ski resorts to mobile home parks, plus tax-savvy home improvements.

Making informed and empowered real estate decisions is crucial. Remember, there’s no one-size-fits-all approach in this market—it all comes down to your unique situation and location.

The Cossette Team

RE/MAX Gateway

(512) 610-7653

thecossetteteam@gmail.com

Do you know anyone who may need our services? Feel free to pass this email along so we can chat with them about their real estate needs!

Community News

Here's what it takes to be in the 'middle class'

in Austin for 2024

Feeling the pinch in Austin? To be middle class in 2024, you'll need to make between $59,604 and $178,830! With living costs soaring, Austin ranks as the 85th priciest U.S. city. The median middle-class income? A cool $89,415. Time to check those wallets, folks!

Critics aren't so impressed with Austin Zoning changes

Critics are not convinced that the proposed smaller lots in Austin will be used to build affordable properties. They argue that the new zoning regulations, which allow up to three units per lot, 6 in some cases, including tiny homes, might not lead to an increase in affordable housing at all.

This Weeks New Listings

See Our Listings

Residential Market Update

Growing Inventory Boosts Buyer Confidence

The official MLS stats are out for April 2024, the Central Texas housing market saw a substantial rise in new home listings, increasing by 26.1% compared to last year. This growth has led to almost all counties, except Williamson, reaching four-month inventory levels, indicating a healthier and more robust market, which feels more like a Buyer's market, yet sales, prices, and contracts are all up over last April despite the 7% interest rates.

Homeowners are showing confidence in their property's value, and buyers benefit from a broader selection of homes, which is helping to stabilize price growth. The data highlights advantages for first-time homebuyers, with more affordable options becoming available. Despite minor fluctuations in various metrics across different areas within the MSA, overall market conditions remain favorable, offering exciting opportunities for both buyers and sellers.

City of Austin

992– Sold, 33.2% more than April 2024.
$593,500– Median price, 6% more than April '23.
2046– New listings, 51.8% more than April 2023.
4113– Active listings,75.3% more than April 2023.
1091– Pending sales,18.7% more than April 2023
5.4– Inventory, 2.3 more than April 2023.

Travis County

1260– Sold, 8.8% more than April 2023.
$540,185– Median price, up 1.9% from April '23.
2585– New listings, 27.3% more than April '23
5507– Active listings, 39.6% more than April 2023
1421– Pending sales, down 1.9% from April 2023
4.8– Inventory, 1.5 more than Mar 2023

Williamson County

939– Sold, 4.9% more than April 2023
$435,000– Median price, 2.5% less than April'23.
1518– New listings, 23% more than April 2023.
2936– Active listings, 26.3% less than April 2023
1036– Pending sales, about 1% more than April 2023.
3.4– Inventory, up 0.8 from April2023.

Insights into the Austin MSA Real Estate Market

Buyers: In April, the Austin-Round Rock MSA experienced a boost in sales, with closed listings increasing by 5.9% year-over-year. The median home price held steady with a slight rise of 1.1% to $469,998. This growth in sales reflects a collective sense of confidence and optimism in the housing market among both buyers and sellers. Despite a higher rate environment, the uptick in affordable inventory, especially in the $300K - $400K range, is allowing more first-time buyers to achieve their goals of homeownership. As we move through the year, mortgage rates are expected to remain elevated, but there is a slight possibility of a gradual decrease, which would enhance buyers’ purchasing power. The increased inventory and steady prices present an excellent opportunity for those looking to invest.

Sellers: For sellers in the MSA, April 2024 offered a promising landscape, hence the new listings rising by 26.1% and active listings up by 31.9%, making the market even more competitive. However, the average close-to-list price has improved to 95.6%, indicating that homes are selling closer to their asking prices. Timing your listing during peak demand periods can give you an edge, attracting more potential buyers, but also brings in the competition. The more balanced market conditions mean that the market isn't tilted towards favoring sellers, but there is still an opportunity to capitalize on the increased buyer activity. Pricing your home competitively is key, and presentation is very important to stand out in the growing inventory and can help you achieve a successful sale.

Central Texas Real Estate Report

Hays County

348– Sold, about 1% more than April 2023
$408,169– Median price, 1.6% less than April '23.
740– New listings, 47.1% more than April 2023
1662– Active listings,29.3% more than April 2023.
500– Pending listings, 22.2% more than April 2023
4.5– Inventory, 1.0 more than April 2023

Bastrop County

118– Sold, about 1% more than April 2023
$352,000– Median price, 7.4% less than April '23.
225– New listings, 4.2% more than April 2023.
558– Active listings, 10.5% more than April 23'
132– Pending sales, 11.4% less than April 2023
4.8– Inventory, 0.7 more than April 2023

Caldwell County

43– Sold, 4.9% more than April 2023
$293,990– Median price, 1% less than April '23
63– New listings, 26.7% less than April 2023
146– Active listings, 9% more than April 2023.
72– Pending sales, 50% more than April 2023
3.5– Inventory, 0.3 more than April 2023

The Rate Update: The focus remains on the incoming inflation and employment data. This April, inflation persisted above the desired levels, with the CPI increasing by 0.3%, marking a slight decrease from previous months but still leaving the annual rate at 3.4%. Employment remains strong, contributing to economic stability. Key inflation drivers include rising shelter and energy costs, significantly impacting overall figures. So while there's a hint of optimism from the Fed, expectations for rate cuts soon remain slim and dependent on upcoming economic data, with the FED suggesting potential adjustments later this year. Rates are in the low 7% down a bit from last week, but still higher than most had hoped to come by this point in the year.

TODAYS RATES

New Listing Activity

Market & Investor Insights

Alternative Real Estate Investments to Consider in 2024

You can explore incredible alternative real estate assets that aren't subject to regular housing market fluctuations. These investments, such as commercial real estate, farmland, and mobile home parks, offer more stability and consistent returns compared to traditional residential properties.

7 Types of Tax-Deductible Home Improvements

Ready to upgrade your home and snag some tax breaks? Home improvements could sweeten your tax return! Whether it’s new solar panels or ramps, check out which renovations might just get Uncle Sam’s nod. Dive into the specifics and maybe save a bundle!