June 2023 Newsletter

homebldr Product Updates

We have begun BETA testing our upcoming investment & renovation portal solution: homebldr.ai. Think of homebldr.ai as the “Zillow of investment and renovation opportunities”. homebldr.ai gives users the ability to search for properties and instantly understand the value-add potential that the property possesses. Here’s a little teaser:

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 $500K

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

1) 9503 Oriole DR, Austin TX 78753

Current List Price: $200,000

After-Repair Value (ARV): $391,000

Gross Profit Margin: 95.7%

Fix & Flip Score (Out of 100): 97.0

2) 5105 Peppertree PKWY, Austin TX 78744

Current List Price: $240,000

After-Repair Value (ARV): $454,000

Gross Profit Margin: 89.1%

Fix & Flip Score (Out of 100): 96.0

3) 9504 Oriole DR, Austin TX 78753

Current List Price: $220,000

After-Repair Value (ARV): $413,000

Gross Profit Margin: 87.8%

Fix & Flip Score (Out of 100): 95.5

National Housing Market

Inventory:

• Inventory is rising, but at a much healthier seasonal pace compared to last year at this time. We have almost the exact same level of inventory as we did at this time last year. By the end of July, it is very likely that we will have less inventory than last year!

• Normally by the end of June, we have 10% - 20% MORE inventory than we started the year with, but we currently have 10% LESS inventory than we started 2023 with.

New & Pending Listings:

• Last year, sudden spikes in mortgage rates caused significant dips in home sales. This year, more gradual changes in mortgage rates aren’t having as strong of an effect on home sales. In other words, the size/speed of mortgage rate changes may have a larger effect on the housing market than the actual mortgage rates.

Median List & Sale Prices:

• Median sale price of $455K is up from last month, but is slightly lower than this time last year.

• Home prices are not falling and we may end 2023 with YoY price GAINS!

• The list price of homes under contract right now is 3.6% HIGHER than this point last year. As these homes close, the sale price of homes will likely be higher than the same time last year.

Price Reductions:

• Price reductions are now lower than this time in 2018 and 2019. It is likely that there will be a lower level of price reductions than last year very soon.

Things To Watch For:

• Will we soon have les inventory than last year and how will the housing market respond?

• Will the Fed continue to hike rates and how will that affect mortgage rates and home sales?

• Will we soon have YoY price gains?

Austin, TX Single Family Housing Market

• Home prices have climbed this spring/summer in Austin, TX. Above-average seasonally adjusted home price appreciation was exhibited in March, April, and June.

• While YoY home price growth is still negative, the gap is shrinking.

• In June, inventory increased while home sales plummeted. A housing market with those characteristics typically puts negative pressure on home prices, but June saw relatively strong price growth.

• If both inventory and mortgage rates were to continue increasing, we would likely see home prices declines. However, with 80% of mortgages below 5%, it is unlikely that a large wave inventory will come unless layoffs or foreclosures spike.

• See raw data below: