SpaceX IPO to trigger housing boom in South Texas

😎 Welcome to your daily slice of real estate news - always fresh, never stale.

Today’s newsletter is 648 words—a 2.5-minute read.

1. Home sales climb to the highest level since 2022

Existing home sales rose 2.8% in May, reaching an annualized rate of 4.53 million units, the highest level since October 2022, according to a Redfin report.

Total home sales, including both existing and newly built homes, increased 3.8% from April to 308,446 transactions.

New listings rose 1.4% in May to 396,181 properties, while active inventory climbed to nearly 1.48 million homes.

2. How long it takes to break even on homeownership

The typical homebuyer breaks even compared to renting in about six years nationally, down from a peak of 8.4 years in October 2023.

Zillow examined the costs of buying versus renting over a 30-year fixed-rate mortgage across the 50 largest U.S. metro areas.

In Texas, the timeline varies by metro area. Houston has the shortest break-even period at 6.3 years, followed by San Antonio at 7.7 years, Dallas at 9.6 years, and Austin at 18.4 years.

A MESSAGE FROM DAVE YOUR MORTGAGE GUY

She Had $2M in a 401k — Bank Still Said No
Had a client recently — wanted to downsize, move closer to the grandkids, completely reasonable ask.
Bank said no. Income too low. Social Security income didn’t qualify
What the bank missed: she had $2 million sitting in a 401k.
We ran an asset-based income calculation, used a percentage of that retirement balance as qualifying income, and she got approved.
Thou also My Bridge loan could have been the answer
She bought first, listed second, closed clean.
This is not a rare situation. A lot of your downsizing clients are sitting on significant equity and retirement assets and getting turned away by banks that only know how to read a W-2.
If you've got a client in a similar spot, forward this their way — it's worth 2 minutes of their time.

3. Catch up quick

🤖 Learn how real estate agents can use ChatGPT ads. (BAM)

🚀 Rocket Pro launches broker tech innovation contest with $100K prize. (NMP)

💼 The economy added 172,000 jobs in May. (BLS.gov)

🏡 HUD seeks feedback on FHA minimum property requirements. (FedRegister)

💸 SpaceX IPO to trigger housing boom in South Texas. (Realtor.com)

4. Dallas Fed president warns a rate hike may be needed

Lorie Logan, a voting FOMC member, said she is "increasingly concerned that higher interest rates could be necessary later this year" after inflation ran close to 4% over the past 12 months and appears to be trending toward the mid-2s rather than the Fed's 2% target.

Her remarks came Wednesday, before Friday's jobs report showed the economy added 172,000 jobs in May with unemployment holding steady at 4.3% — data that strengthens the case for tightening.

Logan also pointed to strong corporate earnings and continued AI investment as signs monetary policy isn't doing enough to slow growth. Logan was one of three FOMC dissenters at the April meeting.

5. Freddie Mac to auction foreclosed Austin apartment complex

Freddie Mac will auction 1601 Royal Crest Drive in Austin, a multifamily property spanning multiple apartment buildings on June 24. The opening bid is set at $9.5 million.

The former owner, Mia Riverside, allegedly defaulted on a $50.2 million loan issued in March 2024. Freddie Mac foreclosed on the property and acquired it at a January auction with a $50 million bid.

The complex includes 526 apartment units and is currently fully vacant. The site offers convenient access to I-35, proximity to East Riverside Drive’s commercial corridor, and is just minutes from Lady Bird Lake. The property spans 20.2 acres and presents strong potential for mixed-use redevelopment.

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