Read on Twitter
Let's talk about condos!
Are they actually a good move right now, given the state of the world?
Short Answer: Hell yes, if you think cities will return.
I strongly believe folks will return to cities as soon as next year, and will be condo hunting once Walden ATX is done.
Are they actually a good move right now, given the state of the world?
Short Answer: Hell yes, if you think cities will return.
I strongly believe folks will return to cities as soon as next year, and will be condo hunting once Walden ATX is done.
I did an analysis to show what's going on.
First, let's calculate inventory in downtown ATX (see rectangle).
There are 147 active condos now. In the past 30 days, 17 condos have closed, which means inventory is 8.65 months.
It's a BUYER'S market! High supply, low demand.
First, let's calculate inventory in downtown ATX (see rectangle).
There are 147 active condos now. In the past 30 days, 17 condos have closed, which means inventory is 8.65 months.
It's a BUYER'S market! High supply, low demand.
An inventory of 0-4 months is a seller's market, 4-6 is a neutral market, and 6+ is a buyer's market.
For context, the inventory in all of Austin for Single-Family Homes is 28 days.
It's a crazy SELLER's market, making it tough to negotiate as a buyer...high demand, low supply.
For context, the inventory in all of Austin for Single-Family Homes is 28 days.
It's a crazy SELLER's market, making it tough to negotiate as a buyer...high demand, low supply.
While there are often multiple-offer situations that can go 20% above asking in SFHs, condos are the exact opposite.
For condos, the vast majority of them are closing at under asking.
Even though the percentage differences aren't as high, it still can amount to a lot of money.
For condos, the vast majority of them are closing at under asking.
Even though the percentage differences aren't as high, it still can amount to a lot of money.
As for those 17 condos that sold in the past 30 days?
2 of them went for asking price.
None of them went over asking price.
Exploding head AND 15 OF THEM went UNDER asking price.
2 of them went for asking price.
None of them went over asking price.
Exploding head AND 15 OF THEM went UNDER asking price.
TLDR: Now's a great time to purchase a downtown Austin condo.
We're in a heavy buyer's market for condos and interest rates are extremely low. It's truly the best of both worlds.
Ready to make some moves? Have any questions? DM me!
We're in a heavy buyer's market for condos and interest rates are extremely low. It's truly the best of both worlds.
Ready to make some moves? Have any questions? DM me!
Lol that wasn't supposed to literally say "exploding head" 
Too late now
Too late now
Also, DO keep in mind that you can't Airbnb out most condos.
It's against most HOAs' rules.
It's also not great to do a short-term rental numbers-wise because the monthly HOA is often at least a couple hundred dollars per month (can be $500+), which hurts your cashflow.
It's against most HOAs' rules.
It's also not great to do a short-term rental numbers-wise because the monthly HOA is often at least a couple hundred dollars per month (can be $500+), which hurts your cashflow.
A better move is to live in it for the first year to get the homestead exemption (if possible), keep living in it or long-term rent it until you want to sell, and then either sell it straight up or refinance it once you have enough equity to do a cash-out refi to buy another one.
