Speaker 1: Welcome to Mortgage Talk with Mark Harriston, the program that
Speaker 1: not only talks about mortgages, taxes, and interest rates, but
Speaker 1: Mark and his guest talk real estate trends and your home.
Speaker 1: He also answers your mortgage questions to help you make
Speaker 1: the right financing or refinancing decisions. Now here's Mark Hairston.
Speaker 2: Happy to everybody, and welcome back to Mortgage Talk with Mark.
Speaker 2: And I'm really excited to bring back a guest who
Speaker 2: was on I don't know six months ago, maybe a
Speaker 2: year now here. Yeah, yeah, and it's by popular demand.
Speaker 2: Ken's back in the house with me, you know.
Speaker 3: Ken Renner, by Mark's demand.
Speaker 4: Yeah, mind demand. Ken Renners in the house with us today.
Speaker 4: And Ken has two ends, by the way, just to
Speaker 4: make sure we understand that part. But Ken is not
Speaker 4: only an expert at what he does in real estate.
Speaker 4: But I want to talk about your experience and welcome
Speaker 4: you back to the show because we have a lot
Speaker 4: to catch up on. You know, this has been a
Speaker 4: crazy couple of years, and you know, I really want
Speaker 4: to get your feedback on what's going on and let
Speaker 4: people know what's going on so they can make informed decisions.
Speaker 4: That's the whole point of the show is to help
Speaker 4: people make deformed decisions around their real estate or other
Speaker 4: things they need around their home. So welcome, Ken Rinder.
Speaker 4: Tell us about you.
Speaker 3: Shit, thank you, Mark. Yeah, we go way back, Mark.
Speaker 3: I think I met you in the early two thousands.
Speaker 3: We're doing some speaking and I think we're helping first
Speaker 3: time home buyers back in the day because that's where
Speaker 3: the market was kind of like where it's headed now.
Speaker 3: But I've been doing this now for four decades, forty
Speaker 3: two years. I got my first license in nineteen eighty three.
Speaker 4: You got me by two years. By the way, I
Speaker 4: know this is about fortieth.
Speaker 3: I got a little more gray hair, got good hair.
Speaker 3: I got a little bit more gray. You're catching up
Speaker 3: to you there. But yeah, so you've been forty years
Speaker 3: and we've been through it all. I mean, I've been
Speaker 3: through booms and bus in four different states, and really
Speaker 3: it's just a matter of what we're here to give
Speaker 3: people hope and that there is there are solutions, you know,
Speaker 3: And that's the whole thing is that you want to
Speaker 3: work with somebody who's been professional, it's been through one
Speaker 3: of these kinds of ups and downs and knows how
Speaker 3: to navigate the market and talk about financing. And I
Speaker 3: used to own a mortgage company. You've known there for
Speaker 3: many years, that's.
Speaker 4: Right, that's right.
Speaker 3: And so it's called River City. It was River City
Speaker 3: Home Loan. Now.
Speaker 4: I will always tell us about the name. I love
Speaker 4: the name. Take it.
Speaker 3: Yeah, well that's you can have it now. Yeah. I
Speaker 3: was going to write a book how to get out
Speaker 3: of the mortgage business there. So I've written some books
Speaker 3: and things like that, real estate books and some goals setting.
Speaker 3: Even have a book on Christian goal setting, which oh
Speaker 3: that's awesome called So it's so yeah, I like, I
Speaker 3: like to share, and I'd like to see but we're
Speaker 3: using my you know, my years of experience to be
Speaker 3: able to see over the horizon. I think that's what
Speaker 3: people why they gravitate to use me. Because when you
Speaker 3: have this many years like you do in the business,
Speaker 3: you you not only have you these networks of connections.
Speaker 3: We call it good old boys, right, you know that
Speaker 3: you just it takes years and years to develop. And
Speaker 3: so what's great about our vendors and people I've been
Speaker 3: working with when I picked when I call them, almost
Speaker 3: including you, almost every time they picked up the phone
Speaker 3: because they know there's going to be someone's going to
Speaker 3: be needing help on the out of line with right
Speaker 3: where transaction is going to happen. So yeah, So I've
Speaker 3: been doing a long time, over half a billion in sales.
Speaker 4: Wow.
Speaker 3: And a lot of that came thanks to the pandemic.
Speaker 3: So we I did one hundred and twenty million between
Speaker 3: twenty twenty and twenty twenty five, and that was almost
Speaker 3: near just about almost five hundred homes. Wow. So we
Speaker 3: were selling. We were just selling a lot of new construction,
Speaker 3: and we're taking advantage of the interest rate, atmosphere and everything.
Speaker 3: But we we kind of really stopped buying in Austin
Speaker 3: during that crazy time, stopped really focusing on Austin. We
Speaker 3: didn't stop buying it, but we stopped focusing on so
Speaker 3: much because between twenty twenty and twenty twenty two we
Speaker 3: got so crazy.
Speaker 4: If you didn't get prices in Austin.
Speaker 3: Yeah, prices in Austin from nineteen twenty nineteen to twenty
Speaker 3: twenty two probably went up, but it went about eighty percent,
Speaker 3: almost double. That's crazy. And that's that's that's ten well,
Speaker 3: it's ten years of appreciation crunched into two years, and
Speaker 3: so now we've had an adjustment down of about twenty
Speaker 3: percent from the very peak, which was June of twenty
Speaker 3: twenty two. So it's it's it's down twenty percent. That's
Speaker 3: what you see in the news, and that's what that's
Speaker 3: what that's where we're here to give the good news. Yeah.
Speaker 4: Yeah, I'll want to back up just for a second. Yeah,
Speaker 4: because you mentioned some just a minute ago. That's that's
Speaker 4: so important because people don't realize how much experience matters. Yeah,
Speaker 4: and going, this is my fourth recession, if you will.
Speaker 4: You know, I went through one in the eighties and
Speaker 4: I thought we'd never get out of it, and then
Speaker 4: by ninety it started to turn. And then you know,
Speaker 4: Austin has always done well over time, over time, you know,
Speaker 4: it's never been hurt. And but you know, for you
Speaker 4: to come on and talk about your experience from that
Speaker 4: perspective looking across the horizon, right, you know, what could
Speaker 4: be possible here, you know, in the next couple of years.
Speaker 3: Yeah, well, a lot of that has depends on a
Speaker 3: lot of different factors. So I'll just finish what I
Speaker 3: was going to say about the about the twenty about
Speaker 3: the twenty percent drop you see in the news that.
Speaker 4: Which is a real thing.
Speaker 3: It's a real thing. We're not but it's twenty percent
Speaker 3: from almost one hundred percent. Yeah, right, So if you
Speaker 3: bought in twenty nineteen twenty, you had almost one hundred
Speaker 3: percent value increases and so you drop twenty percent, so
Speaker 3: you're still up eighty percent. Right, So it's great anybody
Speaker 3: has their houses. But before twenty one or twenty, I'd
Speaker 3: be glad to talk to you because you got equity. Now,
Speaker 3: the ones that bought in twenty two, I really I
Speaker 3: pray with them and let them cry on my shoulder
Speaker 3: because they probably they could have probably lost their down
Speaker 3: payment or a good portion.
Speaker 4: Of it, or they could be upside down.
Speaker 3: And some of them are upside down, which means means
Speaker 3: like actually, when you owe more than the houses work.
Speaker 3: And that's what happened in the seven eighth. Don't know
Speaker 3: that that was all. That was a mortgage driven crisis,
Speaker 3: not not what we're dealing with, that's right, and so
Speaker 3: so that that was that was, that was where prices dropped,
Speaker 3: and so we went through that and everybody, the whole
Speaker 3: industry was it was. That was a tough time. Now,
Speaker 3: that was an apocalypse.
Speaker 4: We're not.
Speaker 3: We're not an apocalypse now.
Speaker 4: Correction correction, normal economic correction, right.
Speaker 3: Right, but that still hurts, you know, and they're apparently
Speaker 3: I'm feeling it. I understand there's going to be somewhere
Speaker 3: between five and six million loans that are going to
Speaker 3: be in default here. Pretty I didn't know that that's
Speaker 3: that's a stat that came out. It kind of blew
Speaker 3: me away, but that that's the US crossed the nations
Speaker 3: around the country shore. Yeah, so Austin itself, you know,
Speaker 3: we have our medium price is about flat.
Speaker 4: Let's up there on the statue. You're a stat guy. Yeah,
Speaker 4: Well it's good, importantly.
Speaker 3: Important, Yeah, because it also it feeds where the future is.
Speaker 3: That's what people come to me. Let's see just a
Speaker 3: little bit over the horizon, because we like Wayne Gretzky,
Speaker 3: I'm not we're not going to go where the where
Speaker 3: the puck is. We're going to go where it's going, right.
Speaker 4: Sure.
Speaker 3: So so right now we're looking to be the medium
Speaker 3: price and Austin MSA is four forty nine, about four fifty,
Speaker 3: and we talked about before the show. It made it
Speaker 3: almost a six hundred at the peak, five five seventy,
Speaker 3: I believe, and so that's only down like way, what
Speaker 3: media is media is half the homes are selling for
Speaker 3: more than half our CNC for less. So we have
Speaker 3: it was about down one point six percent. So it's
Speaker 3: basically flat from what it was last year. And so
Speaker 3: it's not it hasn't hasn't gone down a whole lot
Speaker 3: hasn't gone up. And that's that's probably if everything remained
Speaker 3: the same, it's probably what would happen. But it also
Speaker 3: depends on inventory and what sellers end up doing, because
Speaker 3: right now they're flooding the market with with properties for sale.
Speaker 3: You've got two different kinds of sellers, resellers and you've
Speaker 3: got you've got your builders. Builders are good motivated sellers
Speaker 3: because they have to sell.
Speaker 4: Their product, right and they have to keep building too.
Speaker 3: And they have to keep building. Now. They will pull back, sure,
Speaker 3: but they can't just turn it. They can't just turn
Speaker 3: the lights off, right because they have.
Speaker 4: Because they already purchase these properties.
Speaker 3: They got land, they got they got labor, they've got
Speaker 3: all their crews and they got it. And a lot
Speaker 3: of them are just cutting their margins. And that's where
Speaker 3: we're seeing. I mean, we talked about it before the show.
Speaker 3: They had up to words of twenty two percent margins
Speaker 3: and now they're down to you know, maybe thirteen or
Speaker 3: fourteen percent. They're using that difference in margin to buy
Speaker 3: the interest rates down, get them down in the in
Speaker 3: the in the fives and the fours. They're they're slashing prices.
Speaker 3: They because they do have margin, a lot of And
Speaker 3: that's the thing if you are a seller in this market,
Speaker 3: you need to be realized that I tell them my
Speaker 3: clients is if you if you don't need to sell,
Speaker 3: it's probably not a good time to sell. So because
Speaker 3: those that are actually selling, they need to sell.
Speaker 4: They need to get out. Yeah, and they're relocated, or
Speaker 4: they're right job.
Speaker 3: And a or yeah I got a new job and
Speaker 3: we have all we have those conversations. Okay, so you
Speaker 3: you know you've got to move, then you know then
Speaker 3: you then you need to sell. So the thing is
Speaker 3: you have to you have to price it right, you
Speaker 3: have to stage it right, you have to talk about
Speaker 3: incentives you and these are why you need that experience
Speaker 3: real turn.
Speaker 4: They've been through.
Speaker 3: These can have these hard conversations like I'm having every
Speaker 3: day that you don't want to chase the market down
Speaker 3: right and.
Speaker 4: Get ahead of the market.
Speaker 3: Yeah, the stats are that you know, back in January,
Speaker 3: back in December January, we had ninety six hundred homes
Speaker 3: on the market, which isn't.
Speaker 4: Best a few months ago yes, oh wow, but.
Speaker 3: Now we have fourteen thousand and six, five thousand, five
Speaker 3: thousand more homes on the market. So we're at fourteen
Speaker 3: thousand and six seventy three as May.
Speaker 4: And what does that cover?
Speaker 3: What area? The five county Yeah, Williamsey County, Williams Travis,
Speaker 3: you know, yeah, got home all so so that's the
Speaker 3: five county radius. So that that is a very It's
Speaker 3: up seventeen point five percent in inventory from the previous year.
Speaker 3: That's those are that's a that's a big number. Now
Speaker 3: look at the closed sales. There was only three three
Speaker 3: thousand closed sales. So if they keep putting, then it
Speaker 3: was fifty seven hundred new listed listing. So you have
Speaker 3: they have two thousand month twenty seven, you have twenty
Speaker 3: seven hundred more listings then you have closed sales. So
Speaker 3: for just the month, just say yeah, right, so you're
Speaker 3: you're looking at you're looking at fourteen thousand, six hundred
Speaker 3: and that number will probably go up, be on fifteen
Speaker 3: closer to sixteen thousand, and that that that's where supplying
Speaker 3: demand is going to stay. Say say that prices are
Speaker 3: going to have to adjust down. And so what I'm
Speaker 3: telling my clients is get ahead of that adjustment. You know,
Speaker 3: take take take your take it what what's worth?
Speaker 4: Take your all.
Speaker 3: We're saying really is if you're going to listen to,
Speaker 3: probably listened five percent under the last comp and if
Speaker 3: you look at the close to the average close to
Speaker 3: list price ratio is ninety four percent. So even at
Speaker 3: a good price, they're still taking another five percent. So
Speaker 3: if you have a five hundred thousand dollars listing, you
Speaker 3: should be listening at four seventy five right now, and
Speaker 3: you probably may want to. And that's exactly what's happened
Speaker 3: in the Santa Rita ranch.
Speaker 4: Were you listing that I have?
Speaker 3: Yeah, a great property on Glen Arbor and this property
Speaker 3: is absolutely amazing, unique house backing up to a lake.
Speaker 3: It's twenty four hundred square foot, four bedroom, three bath
Speaker 3: with a study, three car garage, Perry built home, you know,
Speaker 3: custom house, yea, And we listed it for four ninety five,
Speaker 3: gotne offer right away, but it didn't pan out. And
Speaker 3: then and then an how we're at four fifty yeah,
Speaker 3: and and so this is this is unprecedented that you
Speaker 3: took to took ten percent off and and we're still
Speaker 3: not seeing a contract, right, So.
Speaker 4: This was a good reason around that is holding cost.
Speaker 4: You know, you maybe got a mortgage payment. If not
Speaker 4: even that, you're gonna have tax insurance holding cost.
Speaker 3: Yeah.
Speaker 4: Yeah, So there's expenses holding a property.
Speaker 3: Yeah yeah, yeah, And and and properties are and they're
Speaker 3: not meant to be vacant. They they're meant to be
Speaker 3: you know, the dishwasers are meant to be run, you know.
Speaker 3: So so that's the thing. Then we have to have
Speaker 3: the conversation, Okay, you can leave it vacant or do
Speaker 3: you want to rent it out? And you might have
Speaker 3: a three percent interest rate on that. And that's the
Speaker 3: conversation I have because I'm an investor and I've kept
Speaker 3: a bunch of my previous homes I lived in and
Speaker 3: I still have the one in Round Rock. And what
Speaker 3: it is I'd teach my first time home buyers, this
Speaker 3: would be a great proper for you to keep. Yeah,
Speaker 3: ask your grandfather, ask your father, or your grandfather. You know,
Speaker 3: if would would you keep your first house? Absolutely, And
Speaker 3: I've never heard anybody Usually it's one of those like heck, yeah,
Speaker 3: you know, give me another one. You know.
Speaker 4: Well, at first house was in nineteen ninety for ninety
Speaker 4: thousand dollars. Yeah, twenty four and oh kill twenty four
Speaker 4: and scare feet off waven Ken, you know, yeah, yeah,
Speaker 4: it's worth more than that today. Yeah, I sold.
Speaker 3: It, Yeah, I do so. Don't you wish she kept
Speaker 3: all those houses? So that's what that's what really started
Speaker 3: a whole business plan for me that I started working
Speaker 3: with first time homebars. But then I found out those
Speaker 3: first time homebar product that the entry level housing was
Speaker 3: great for investment. So in the nineties I started doing
Speaker 3: presentations at Renaissance Hotel, and you saw that doing marketing,
Speaker 3: I would have first time home buyers on the first hour.
Speaker 3: In the second hour, I would have investors the same product,
Speaker 3: different buyer, Yeah, yeah, and and so yeah. And then
Speaker 3: what happened in the late late nineties things slowed down
Speaker 3: here and so I but I saw the market in
Speaker 3: California was way up here in accelerating while we were
Speaker 3: kind of.
Speaker 4: Which is for you hail from is California.
Speaker 3: Yeah, from California. So I've got a big I got roots.
Speaker 3: I was born in San Mateo, so so I have
Speaker 3: a big I have more. I actually have more clients
Speaker 3: in California and Silicon Valley in southern California and back
Speaker 3: east and Chicago and other cities than I do actually
Speaker 3: in our hometown because I go out there and visit
Speaker 3: with them and shake hands and kiss babies and and
Speaker 3: make them feel good about you know, you could. It's
Speaker 3: about five to one ratio. You can buy five houses
Speaker 3: for the price of one, so and that and that
Speaker 3: that's very attractive. We've had many people that have sold
Speaker 3: their their Bay Area property or their one that they
Speaker 3: inherited or whatever and bought ten ten houses and frame
Speaker 3: clear tax text to first.
Speaker 4: That's a beautiful thing.
Speaker 3: Yeah. Yeah, so I one guy, we went from thirty
Speaker 3: six hundred income for the his Salmonteo house and he
Speaker 3: went to when he closed with me, there was a
Speaker 3: thirteen thousand, six hundred gross in cole times for the
Speaker 3: same equity.
Speaker 4: And that speaks to another reason people may want to
Speaker 4: hire you because you have a larger network. Yeah, that's
Speaker 4: nothing networked in Central Texas. Yes, your networked all over
Speaker 4: the coast.
Speaker 3: Yeah, yeah, and then and we we That's another strategy
Speaker 3: of for me going to California. There's so many relocations
Speaker 3: coming this way, as I wanted to be the go
Speaker 3: to person, get in front of them while they're there,
Speaker 3: rather than wait for them to get here, because usually
Speaker 3: get hooked up with somebody already by that time. So
Speaker 3: it's been very it's been a very lucrative and enjoyable.
Speaker 3: And yeah, lots of cultural buyers. So I've learned a lot.
Speaker 3: And oh sure, and I really under I really enjoy
Speaker 3: the differences in cultures. And that's what makes America great
Speaker 3: is that that they they they a lot of the
Speaker 3: different cultures think differently about real estate. And I like
Speaker 3: the way they think they like real estate, yes, yeah,
Speaker 3: and they hold on to it a lot of smart
Speaker 3: bar Yeah, they're smart buyers. They there and their homework, well,
Speaker 3: you know a lot of people came from other countries.
Speaker 3: They they had to work, they had to be really
Speaker 3: kind of the most educated, the most the most motivated,
Speaker 3: uh disciplined. Uh, and to be able to get.
Speaker 4: Here, right because they won the lottery.
Speaker 3: Yeah, you kind of do. That's kind of the that's
Speaker 3: kind of the you know, a lot of we joked
Speaker 3: as they their parents always say you're going to be
Speaker 3: an engineer or a doctor. There is no other choice, right. Yeah.
Speaker 4: A good friend of mine who has been uh in
Speaker 4: industry a long time as a software engineer, went to
Speaker 4: work for Apple recently. He says, Mark, you know, now
Speaker 4: I go into the to the dining area or whatever,
Speaker 4: and probably three out of four are from different countries. Yeah,
Speaker 4: you know that have come here for for the opportunity
Speaker 4: in the country.
Speaker 3: It's absolutely it's absolutely amazing. It's great, and you know,
Speaker 3: for the but they love it, love it or don't
Speaker 3: love it. It's it's it's here.
Speaker 4: It's reality and its.
Speaker 3: Reality and and it's at the well we're the tech
Speaker 3: one of the tech hubs, you know. So right and
Speaker 3: once again our houses are twenty percent of the value
Speaker 3: of the houses and there.
Speaker 4: And that speaks to the economics of Austin. Central Texas
Speaker 4: is still pretty strong. It's still very have a strong
Speaker 4: job line. Even though we have the highest prices median
Speaker 4: in the state. We're also but we're about where the
Speaker 4: medium prices across the United States. So it's it's all relative.
Speaker 4: So and so yeah, we're seeing great. We we still
Speaker 4: have some really amazing deals like that Glenn Arbor house
Speaker 4: went from four four five hundred to four fifteen. You
Speaker 4: can't even touch it, there's no there's no there's no
Speaker 4: new construction that beats it and everything like that. So
Speaker 4: I hope somebody is listening because that house is a
Speaker 4: great deal and he's gonna he's gonna turn around. Speaking
Speaker 4: of listeners, let us know how to get a hold
Speaker 4: of it. Yeah, house today.
Speaker 3: Yeah, absolutely, yeah, give me a call. Well, we part
Speaker 3: prayer as part of our as part of our strategy.
Speaker 3: So yeah, it's Ken Renner ky and n ri E
Speaker 3: n n E R and it's my emails ken k
Speaker 3: E double n at my website by Austin dot com.
Speaker 3: So ken at by Austin.
Speaker 4: Rate great website.
Speaker 3: I got that in nineteen ninety five. Wow.
Speaker 4: Yeah four websites for ignorant Yeah yeah thing.
Speaker 3: Yeah yeah so yeah, so yeah buy Austin dot com
Speaker 3: and five one two four two three five six two six,
Speaker 3: and we'd love to chat with you and you know,
Speaker 3: and discuss strategies market tax ramification implications, sure, how to
Speaker 3: shelter your taxes, all that kind of stuff.
Speaker 4: And you've worked you speaking of that, you've worked with
Speaker 4: hundreds of not thousands of investors and talk about a
Speaker 4: strategy where they can take money from one property in
Speaker 4: tax defer to buy them.
Speaker 3: So it's a ten thirty one tax deferred exchange. People.
Speaker 3: One of the biggest benefits of real estate is the
Speaker 3: tax benefits. And as you know from home ownership, sure
Speaker 3: you know that one of the things you pitched to
Speaker 3: your home buyers is that, hey, this is going to
Speaker 3: be a tax deductible mortgage, right, but in real estate investing,
Speaker 3: there's all of it's deductible, along with another thing called depreciation.
Speaker 3: So your depreciation really saves on taxes depending on what
Speaker 3: tax bracket you are in this there's there's strategies on that.
Speaker 3: But also if you're taking an appreciated property and then
Speaker 3: you've got a lot of equity, if you sell it today,
Speaker 3: you're going to pay anywhere in fifteen to twenty percent
Speaker 3: capital gains, plus you also have to pay back some
Speaker 3: other things depreciation, recapture and things like that. So so
Speaker 3: why you know, you've bought this great property and now
Speaker 3: you're going to you maybe went up to from five
Speaker 3: hundred to a million. Now you got to you got
Speaker 3: to spend one hundred thousand dollars in taxes or whatever
Speaker 3: it is. And it's like, there's a way to, uh,
Speaker 3: to defer that by taking that that investment property and
Speaker 3: selling it and doing what's called a ten ten thirty
Speaker 3: one tax deferred exchange and taking that's what we're seeing
Speaker 3: with a lot of our clients that will take that
Speaker 3: one property and well, in the case of mister Bill
Speaker 3: in California, took us one property ten thirty one that
Speaker 3: in exchange it into ten property or nine properties here
Speaker 3: are yeah in Temple Belton in a different areas. So
Speaker 3: and so that that's that's a way to defer taxes
Speaker 3: and not even pay it. And eventually, actually when you
Speaker 3: give it to your kids, they get what's called a
Speaker 3: stepped up basis. So yeah, you know, you say you
Speaker 3: can't avoid death or taxes. Actually you can't. Can't you
Speaker 3: can't well, taxes ever lasting. So yeah, yeah, but you
Speaker 3: can you can actually defer the taxes until the point
Speaker 3: where when when your kids inherit. The problem is a
Speaker 3: stepped up basis. I'm not a CPA, and so here's
Speaker 3: my disclaimer. I'm not leaving legal or tax advice. If
Speaker 3: you want to know, call me and I'll connect you
Speaker 3: with my CPA.
Speaker 4: There you go.
Speaker 3: He has two PhDs. He's a pretty smart guy.
Speaker 4: Good now, let's think of speak of economics. Let's go
Speaker 4: back to some of the basics about what drives markets.
Speaker 4: And in our case, I think in real estate it's
Speaker 4: going to be first time buyers.
Speaker 3: Oh it starts, okay, talking about the cycle, the cycless
Speaker 3: so real state, you know, real estate is that's what's
Speaker 3: nice about being able to predict the market and not
Speaker 3: really it's just you study of the cycles, history of repeats, right,
Speaker 3: so you always have it's common. You have your you
Speaker 3: have your what we just went through as an expansion cycle,
Speaker 3: then you have his adultery.
Speaker 4: Is a long cycle?
Speaker 3: Well last expansion, well it actually was. It was from
Speaker 3: twenty twelve to twenty twenty two, ten years. Usually it's
Speaker 3: just seven Yeah, it's just seven seven to ten years.
Speaker 3: But then you had another ten years worth of appreciation
Speaker 3: in twenty twenty, so you really had was it was.
Speaker 3: Now you're seeing just if you look at the chart,
Speaker 3: it actually if you watch the normal price increases, which
Speaker 3: is great, healthy market for Austin and all of a sudden,
Speaker 3: you had this big spike, but then it drops down
Speaker 3: a little bit. It's still on the same trajectory. So
Speaker 3: we're starting to see, yeah, it's still it's starting. It's
Speaker 3: going to go like this and then it's going to
Speaker 3: start going back up again. And that's just a common thing.
Speaker 3: But here's the steeper the climb, the deeper the fall.
Speaker 3: So you know that we're making national news. Is one
Speaker 3: of the biggest countries with the biggest cities in the nation,
Speaker 3: that the biggest drop, but we also had the biggest
Speaker 3: increase for sure.
Speaker 4: Percentage.
Speaker 3: Yeah, yeah, so it's all it's all studying. You know,
Speaker 3: when to buy in the market right now? I would say,
Speaker 3: is it time to buy when prices are low, when
Speaker 3: people are giving their houses away, or is it time
Speaker 3: to buy when it's peeking out it's about ready to drop.
Speaker 3: So right now is the time as people are sitting
Speaker 3: on the sidelines waiting, waiting, waiting, there there's gonna be opportunities,
Speaker 3: and there opportunities are happening right now. And uh, just
Speaker 3: a one percent drop in interest rates, Mark, it's all
Speaker 3: your fault. One drop one percent drops on remember last September.
Speaker 4: Yeah, what happened. Yeah, for about a minute, it went
Speaker 4: a bit.
Speaker 3: It showed me the chart.
Speaker 4: Yeah, I had a ten year treasure chart up before
Speaker 4: we got on the show, and it went down. The
Speaker 4: ten year treasure is really were people need to look
Speaker 4: at treasure if they're looking at the the trend of
Speaker 4: interest rates, it's mortgage backed securities are usually based on
Speaker 4: the ten year treasure, not directly but almost.
Speaker 3: Yeah, it's very easy to find. In fact, we follow
Speaker 3: on a daily basis.
Speaker 4: Yeah, mortgage absolutely, we've we fell below four percent last September,
Speaker 4: maybe three point eight percent on the ten year, and
Speaker 4: mortgage rates came down below six And for about a
Speaker 4: week we were really busy.
Speaker 3: Really every applications there comes to. People were out. Auto
Speaker 3: homes were filled with people like that. Yeah, because there's
Speaker 3: the the you know, they hear that the good there's
Speaker 3: good prices, which there are, and then almos gonna hear
Speaker 3: a good interest rate. So that's going to change. That's
Speaker 3: going to really help.
Speaker 4: Few psychologically well and economically. Yeah, let's face it.
Speaker 3: Yeah, and so the new administration very much looking for
Speaker 3: the benefits of real estate ownership, and so that's what
Speaker 3: you know, that's all the all of the things that
Speaker 3: Trump put back in twenty seventeen. He is trying to
Speaker 3: get them renewed for twenty because there are a lot
Speaker 3: of them were expiring. These tax cuts for real estate,
Speaker 3: so very much a real estate friendly administration that we have,
Speaker 3: and that's good and yeah, and because we need it.
Speaker 3: Guess what, we're still four million homes short that for
Speaker 3: what's actually needed in the market or actually a nationwide I.
Speaker 4: Didn't know that four million house and millions.
Speaker 3: That we don't that. So the population keeps growing. The
Speaker 3: population that people are now our kids are starting to
Speaker 3: have kids, They're looking for their home, they want to
Speaker 3: set up their nest, you know, they don't want to
Speaker 3: continue renting. Now we're seeing a lot of builds to
Speaker 3: rent where people are much you know, opt to rent over,
Speaker 3: which is another trend. But the market opt to rent
Speaker 3: over over buying. But but a lot of people want
Speaker 3: to settle in. They don't want to they don't want
Speaker 3: to be a renter. So so now that's also mentioned before.
Speaker 4: My son, my youngest son. I've got three boys and
Speaker 4: two of our own properties. My youngest Sun's thirty two.
Speaker 4: He's well educated, he's a CPA and he's been renting.
Speaker 4: He's on the side line. Yeah, but I guarantee when
Speaker 4: the market shifts as far as interest rates, he's going
Speaker 4: to take advantage of it.
Speaker 3: Yeah. Yeah, Well, we're also telling people that live in
Speaker 3: higher appreciated markets like the like Bayry or southern California,
Speaker 3: where they can't afford they can they they can rent
Speaker 3: for the three thousand dollars a month, but if they
Speaker 3: bought that same property, it'd be twelve thousand dollars a
Speaker 3: month in a mortgage. Absolutely, So take the difference and
Speaker 3: invest it in real estate there where it's going to appreciate. Yeah,
Speaker 3: including our places here in Austin. Be a good time
Speaker 3: to buy. But numbers still a little tough on making
Speaker 3: the numbers work for rent wise because rents are down
Speaker 3: a bit. But in our sub markets doing great. Our
Speaker 3: sub markets, which would be Temple Belt in these are fifty.
Speaker 4: Mile sub markets. People don't really understand.
Speaker 3: Yeah, well, I mean fifty miles south and fifty miles
Speaker 3: north on I thirty five. You've got great cities New
Speaker 3: Bronfos and San Antonio. You know, San Antonio's the seventh
Speaker 3: largest city in the nation, and it's prices about one
Speaker 3: hundred thousand less than Austin on average, and.
Speaker 4: We're buying down I thirty five really right from Waco
Speaker 4: possibly down Yeah.
Speaker 3: So we look at those good metros where they have
Speaker 3: really have their own economy that are not based on
Speaker 3: high tech and and diversity to versify and an attractive
Speaker 3: place where people want to live and jobs, all those
Speaker 3: all the stuff that why we invest and those those
Speaker 3: those prices are literally fifty percent of the medium price
Speaker 3: we're buying homes. We just closed several of them under
Speaker 3: two hundred thousand for a three two about two car
Speaker 3: garage fourteen hundred and fifty square four is that new
Speaker 3: bron Fuels and yeah wow. And then and then Temple
Speaker 3: Belton with the whole medical thing that that's always been
Speaker 3: a great place to invest in and we're seeing we're
Speaker 3: seeing great deals in there's about mid fIF two fifties
Speaker 3: to forties, very forimable, Yeah, very foid. About halfway we
Speaker 3: are in Austin.
Speaker 4: And one of the beauties of central texts if you
Speaker 4: and I read a stat one time from Waco, which
Speaker 4: is bill where Baylor is, down to San Antonio, which
Speaker 4: has a lot of colleges through Boston of course, there's
Speaker 4: four hundred thousand students oh yeah in this corridor. Yeah,
Speaker 4: who want to will be graduating someday and who want
Speaker 4: to stay in Central test it's most likely yeah, you know,
Speaker 4: not always, yeah, but you know, so there's always going
Speaker 4: to be buyers out there. We just have to wait
Speaker 4: until things turn around a little bit.
Speaker 3: Yeah. Yeah, so, and that's that's the thing we have.
Speaker 3: We have seventeen thousand realtors in Austin right now, and
Speaker 3: we have only look, we have fourteen thousand listings, which
Speaker 3: is that's that's less than one per person per realtor,
Speaker 3: and you have twelve of them. Yeah, I got twelve
Speaker 3: of them. Well, that's good. The percentage really is. It's interesting.
Speaker 3: It was a sad stat. I pray for my industry
Speaker 3: because it's you know, the realtors fifty percent did not
Speaker 3: sell any real estate last year, right, sixty two percent
Speaker 3: sold one or none. So that's not they can't make
Speaker 3: a living, no, no, So obviously that goes back to
Speaker 3: you want to work with a five percenter, You're a
Speaker 3: five percenter. I'm a five percent. Five percent of us
Speaker 3: are handling about eighty percent.
Speaker 4: Of the business. We've been around for a long time, yeah,
Speaker 4: forty years.
Speaker 3: Yeah, and back in the day, a couple of years ago,
Speaker 3: we didn't you just put a sign in the yard
Speaker 3: to go open door. You know, you know, all those
Speaker 3: models don't work anymore.
Speaker 4: No, and you gotta have a pro.
Speaker 3: Yeah it is. And you're basically paying pretty much the
Speaker 3: same about the same spectrum on on compensation. Sure, uh
Speaker 3: you know then why not? Uh? You know you're you're
Speaker 3: a specialist. Do you get as a as a doctor?
Speaker 3: Do you get paid more as a specialist?
Speaker 4: I look by cardiologist. Yes, yeah, it's a four million
Speaker 4: dollar house in Westley.
Speaker 3: Yeah yeah, yeah, yeah, you're putting his kids who we.
Speaker 4: Will got in a minute or so. Talk about your network,
Speaker 4: your B and I for Christians.
Speaker 3: Okay, yeah, it's called it's called Kingdom Entrepreneurs. We've had
Speaker 3: Kingdom Entrepreneurs and it's a it's like a it's a
Speaker 3: networking group for for Christian business owners and salespeople and
Speaker 3: anybody or entrepreneurs that want to get into the into business. Uh.
Speaker 3: And we have a live luncheon every month. It's at
Speaker 3: the Vineyard Church. But it's a multi you know, it's
Speaker 3: multi church. People come from all over Yeah, we've between
Speaker 3: forty and fifty people. And what we're on the we
Speaker 3: do it on the second Wednesday is the online meeting,
Speaker 3: which is which is a zoom.
Speaker 4: It's great zoom.
Speaker 3: Yeah, and for about a hour we'd get to really
Speaker 3: get to know each other. And then the in person
Speaker 3: is on the fourth Wednesday of every month. And so uh,
Speaker 3: that's where it's kind of a we have a luncheon
Speaker 3: or we free lunch. We bring bring in a good barbecue,
Speaker 3: a good speakers barbecue uh uh and even somebody kind
Speaker 3: of homemade. Last time we had homemade stuff, so uh.
Speaker 3: And then we we we listen to a good motivational
Speaker 3: speaker like Mark Harriston and uh and then also and
Speaker 3: then and then we network just like a B and
Speaker 3: I if you've been at B and I where you
Speaker 3: actually changed look, but it's more about getting to know
Speaker 3: each other and and being in a safe environment where
Speaker 3: we can talk about our faith. So yeah, so I
Speaker 3: appreciate that it's Kingdom a t X dot com ATX
Speaker 3: dot com Kingdom at X.
Speaker 4: I highly recommend you check that out if you wanted to, uh,
Speaker 4: just you know, let kin.
Speaker 3: Know Mark You're gonna be our speaker next next month,
Speaker 3: the month after that.
Speaker 4: All right, well were we are wrapping it up. Great
Speaker 4: to be with you, Kim, and I will always wish
Speaker 4: you the best like this has been.
Speaker 1: Mortgage Doc with Mark Hairston. Mark is a mortgage advocate
Speaker 1: with the Texas Mortgage Source LLC, offering personalized mortgage solutions,
Speaker 1: fast customized quotes, great rates, and service with integrity. Contact
Speaker 1: Mark at Markhirston dot com. Mark Hairston dot com. You
Speaker 1: can call our text Mark at five one two seven
Speaker 1: eight nine sixty nine sixty seven. That's five one two
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Speaker 1: next week for more mortgage talk