“Neighborhoods” Real Estate Energy by Carl Shurr
The Federal Open Market Committee projects lowering rates by another half point by the end of the year and expects them to fall to 2.9% by 2026. Bank of America economists predict a half-point cut in November and a series of quarter-point cuts until the Fed funds rate reaches 2.75%- 3% sometime in 2025.
The energy of these numbers could potentially release more inventory into the real estate supply market. People have been reluctant to list their properties due to the mortgage rates they secured several years ago. While you would believe this added supply would impact sales prices, we do not think it will soften the sales prices further due to the equal amount of pent-up buyer demand and the dense migration to Texas and its robust job market, which is expected to continue through 2050, based on several reports. (Texaplex.pdf)
Besides destination locations, signature locations that ensure high home sales prices include city job markets with solid higher salary opportunities and areas that embrace entrepreneurial cultures. Cities that believe in and encourage the American Dream of home ownership will keep vibrant markets and build strong communities. Like Nashville, Tennessee, in the second quarter of 2024. Nashville grew its luxury market from within, which led to a strong city, a connected community, and a vibrant real estate market; this is how, for the first time, Nashville climbed to number one as the top luxury market influencer. Diversified job opportunities and growth, allowing move-up homeowners to buy.
While the driving force of real estate has always been location, location, and location, what might influence neighborhood desirability and growth are businesses that harness great cultures so that people decide to stay for a while and build great neighborhoods. A neighborhood is excellent either due to its proximity to downtown, the culture someone wants to give their family, the architectural experience one wants to have for their life, or, most importantly, the neighborhood vibe, even if your neighborhood is sitting on 100 acres watching nature from your front porch.
Real Estate is an experience—an experience of the life we want to build, the environment we want to be part of, and most of all, our neighbors. It’s all about neighborhoods. We all want to find the right place in the neighborhood where we want to plant roots, yet it doesn’t always mean it is one neighborhood. It could mean a neighborhood close to a music scene in October, a snow scene in December, or a beach scene in January. A home can be for a season or an entire life.
The world has opened up so large and made staying connected so easy, yet nothing is better than saying hello to your neighbors on a morning walk with your dogs, hearing people's stories, and knowing their dogs' names. Neighborhoods are about people building solid and valuable communities together. Neighbors have the potential to become our chosen family, as many of us have moved away from family to seek different experiences and have various adventures.
I have served signature communities in Austin, Texas, for over seventeen years and specialize in neighborhood knowledge that reaches beyond the numbers. When selling a property, it could be from a non-performing asset to a performing asset all in one purchase or sale.
Contact me if you would like to schedule a private consultation about your real estate goals, want to build a plan for 2025, or need a recommendation for a real estate professional outside of the Austin, Texas, area. I have an extensive network, and it would be a pleasure to connect you with someone who can fulfill your real estate dreams to live your best life!
- Carl
