July 2023 Newsletter

homebldr Product Updates

The latest addition to the homebldr solution suite, homebldr.ai, is officially live! homebldr.ai is a real estate portal that performs value-add analysis to determine investment potential. Within homebldr.ai, users can search for a specific address and immediately gain access to that property’s:

• Estimated current value

• Estimated after-repair value (ARV)

• Value-add potential (dollars and percent)

• Value-add grade

• Investment score and category

• Post-renovation comparable properties that support the estimated ARV

• Location quality analytics

• Property photos, listing information, and characteristics

• and more!

Users will also be able to order HOMEBLDR Property Reports, bulk datasets, or request financing from within homebldr.ai.

Head to www.homebldrai.com or www.homebldr.ai (they take you to the same place) to sign up for a free trial with no payment information required. When you sign up, you will automatically gain access to the free trial. After searching for 10 properties, you will be instructed to sign up for a monthly/annual subscription to gain full access.

If you are interested in a demo of homebldr.ai or any of our other solutions, please reach out to [email protected]!

Top Active Deals in Austin, TX for Under $400K

The following properties present three of the best single family fix & flip investment opportunities with a list price of $400K or less that were listed in Austin, TX in July 2023:

1) 1461 S Meadows DR, Austin TX 78758

Current List Price: $369,000

After-Repair Value (ARV): $647,000

Value-Add Potential: 75.2%

Investment Score Score (Out of 100): 93.9

2) 3106 Northeast DR, Austin TX 78723

Current List Price: $375,000

After-Repair Value (ARV): $654,000

Value-Add Potential: 74.4%

Investment Score Score (Out of 100): 93.3

3) 5320 Wellington DR, Austin TX 78723

Current List Price: $345,000

After-Repair Value (ARV): $590,000

Value-Add Potential: 71.0%

Investment Score Score (Out of 100): 90.7

National Housing Market

Inventory:

• Inventory is substantially lower than it was at this time last year and is not increasing at the expected seasonal pace.

• Inventory is HALF of what it what pre-pandemic (at this time in 2019).

• We may end 2023 with significantly lower inventory than we ended 2022 with.

Home Sales:

• Home sales are only ~10% less than they were at this time last July and the gap is shrinking.

• Homes under contract is about the same as it was last July, indicating that home sales (which naturally come after homes under contract) will soon be on par with what they were one year prior. This trend could result in year-over-year home sales growth in the next few months.

Median List & Sale Prices:

• Sale prices are hovering around $450K which is basically unchanged from this time last year.

• Median price of homes under contract is $385K (and rising) which is HIGHER than it was at this time last year. This is indicative of year-over-year price GAINS to be achieved over the next few months.

Price Reductions:

• Price cuts are at their seasonal average and are increasing at the seasonally expected pace.

Things To Watch For:

• When the supply of homes in the market increases higher than the demand in the market can absorb, more homes in the market are forced to take a price cut (price reductions increase). When there’s plenty of demand, sellers don’t have to take a price cut (price reductions decrease). This makes price reductions a leading indicator of how much demand exists in the market relative to supply. With price reductions hovering around the seasonal average, this is a key metric to watch.

• With home prices near flat and looking like they may go year-over-year positive AND home sales riding the same trend, is the housing market stronger than the common conception? Is this the soft-landing that the Fed promised?

Austin, TX Single Family Housing Market

• Home prices have climbed for the majority of this year, but seasonality is going to push them lower for the remainder of the year.

• At this time last year, home prices were dropping rapidly (from $690K in July 2022 to $625K in August 2022). If home prices can mimic typical seasonality, we may see year-over-year price gains by the end of 2023.

• Inventory continued to increase in June while home sales declined (a terrible sign for home prices), but inventory began its seasonal decline in July.

• Year-over-year home sales is nearly flat right now, but the current pace that home sales are declining makes it seem unlikely that Austin will obtain the year-over-year home sales growth that the national housing market may see.

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