April 2023 Newsletter

National Housing Market Update

Inventory:

• Inventory increased in the second half of April for the first time in 2023, but there are still 15% - 20% fewer sellers right now than at this time last year

• The US has a record lower number of homeowners facing mortgage delinquency, which indicates that there is no flood of inventory coming from sellers that can’t pay their mortgages (homeowners are in incredible shape financially)

• There are ~50% more homes on the market than this time last year, but ~50% fewer homes on the market than this time in 2019

New & Pending Listings:

• As inventory has begun to climb, homes under contract are also climbing; this means that there is strong buyer demand that likely outweighs the current supply of homes on the market

Median List & Sale Prices:

• Prices have continued to inch upwards since the contraction that happened at the end of 2022, however, are ~4.5% lower than they were at this time last year

• Sales prices for the next ~3 months will not (and can not) move dramatically lower because the homes that will close in those months are already under contract

Price Reductions:

• Price reductions have continued to fall and are currently lower than they were at this time in 2019

Things To Watch For:

• Any major changes in the economy (i.e. a recession) that would cause homeowners to be in a worse financial position and more likely to sell their homes could result in a flood of inventory that would bring home prices down

• As inventory continues to climb, sales should also climb as long as buyer demand is not maxed out; if we get to a point where inventory is climbing but home sales hits plateau, this would have a negative affect on home prices

• The price of homes under contract is a great indicator of how home prices will change 1 - 3 months into the future

Austin, TX Housing Market Update (Single Family Homes)

Top Active Deals in Austin, TX for Under $500K

The following properties present the top three single family fix & flip investment opportunities with a list price of $500K or less that were listed in Austin, TX in April 2023:

1) 4604 Lambs Lane, Austin TX 78744

Current List Price: $275,000

After-Repair Value (ARV): $722,000

Gross Profit Margin: 162.4%

Fix & Flip Score (Out of 100): 100.0

2) 2014 Tramson Drive, Austin TX 78741

Current List Price: $399,900

After-Repair Value (ARV): $787,000

Gross Profit Margin: 96.7%

Fix & Flip Score (Out of 100): 99.3

3) 9001 China Rose Drive, Austin TX 78724

Current List Price: $394,950

After-Repair Value (ARV): $727,000

Gross Profit Margin: 84.1%

Fix & Flip Score (Out of 100): 98.0